General Motors Co. has inked a deal to sell its premium off-road brand, Hummer, to a Chinese industrial company.

GM said last Friday that it has a definitive agreement with Sichuan Tengzhong Heavy Industrial Machinery Co. for 80 percent of Hummer. A private investor would buy the remaining stake.

Under the terms of the deal, GM would continue to build the H3 and the H3T until June 2011 on a contract basis. GM would assemble the H2 for the Chinese owners for that time period as well. The deals have an option to be extended until June 2012.

Financial terms were not disclosed, but GM would reportedly get US$150 million. It’s still subject to closing conditions and regulatory approvals.

James Taylor, the CEO of Hummer, will stay on and lead the company under its new ownership. He previously was the Cadillac general manager and oversaw that brand’s revival.

“Hummer is a strong global niche brand, and this agreement signifies another important milestone in writing the next chapter for both GM and Hummer,” GM CEO Fritz Henderson said in a statement. “For Hummer, the combination of its knowledgeable leadership team, vehicle-design expertise and the capital financing of Tengzhong portend a successful future.”

The deal could secure about 3 000 jobs in the United States, and Tengzhong would get access to the Hummer dealer network.

Hummer said it plans to add FlexFuel capability to the 2010 H3 and H3T and will sell a diesel H3 outside of North America. The brand also is looking at more options for fuel efficiency, including alternative powertrains and six-speed transmissions.

The agreement is another milestone for GM as it restructures in the wake of its historic bankruptcy. The automaker is shuttering Pontiac and Saturn and trying to sell Opel and Saab. That leaves GM with four core U.S. brands: Chevrolet, Cadillac, Buick and GMC.

Via AutoWeek

Frederick A. Henderson, known simply as “Fritz”, has been with General Motors since 1984 and today (March 31, 2009) he will become the CEO of the struggling U.S. automaker. Fritz will be replacing Rick Wagoner who was asked to step down by the Obama administration over the weekend as a condition for General Motors to receive additional federal loans.

Obama reminded us yesterday that Wagoner wasn’t asked to step due to his failure to lead.

“This is not meant as a condemnation of Mr. Wagoner, who has devoted his life to this company; rather, it’s a recognition that it will take a new vision and new direction to create the GM of the future,” Obama said in his speech.

Back to Fritz. Son of a Buick sales manager, Fritz holds a Master of Business Administration degree from Harvard Business School and a bachelor’s degree in business administration from the University of Michigan’s Ross School of Business.

Fritz has held a number of positions at GM with his first significant position being group vice president of Finance for GMAC. From 1997 to 2000, Henderson was vice president and managing director of GM’s Brazil operations. In Brazil, Fritz was known for introducing the small and inexpensive Celta subcompact car and the Meriva minivan. In June 2000, Henderson became group vice president of GM Latin America, Africa and the Middle East and in 2002, he became president of GM Asia Pacific where he was responsible for expanding in Korea and China.

In 2004, Henderson was appointed to chairman of GM Europe and made is return to the U.S. in 2006 becoming vice chairman and CFO. In 2008, Henderson became GM’s president and Chief Operating officer.

Adapted from eGMCarTech