General Motors (GM) will sell its Hummer division to Chinese based Sichian Tengzhong Heavy Industrial Machinery in a deal reported to be worth $150 million. For the Chinese, the long-anticipated deal represents the first acquisition of a distressed asset from the American car industry and a calculated bet that it can revive the brand.

The new owners are expected to invest heavily in expanding Hummer with a view to establishing a manufacturing facility in China. For the present, Hummer production will remain in the United States at least until June 2011, with an optional one-year extension until June 2012.

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