General Motors Corp. announced today that it had reached a memorandum of understanding with Sichuan Tengzhong Heavy Industrial Machinery Co. According to terms in the memorandum of understanding, Tengzhong Corp. will acquire the GM's Hummer brand and its management and operation teams.

Reporters learned from GM in China that this memorandum of understanding is another important step in the reconstruction of GM. It is claimed that the sale of Hummer will not affect the operation of GM in China.

GM indicated that headquarters and operational institutions of Hummer would stay in the US and the current management would also be kept.

It is know that the deal will be closed at the end of the third quarter of this year. The deal also needs to conform to special conditions and go through relevant legal procedures. Accounting information involved in this deal is yet undisclosed.

Kevin Wale, president and managing director of GM China,expressed to media that GM's business in China would operate as usual after GM filed for bankruptcy. This includes a project with First Automobile Works to build a joint venture of commercial vehicles, which is still carried out in accordance to the strategic plan.

By People's Daily Online