HUMMER H3, H3T Production To Restart By November?

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2009 Hummer H3

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HUMMER's sale is all but complete--though there are some worrying details left to be handled with the Chinese government--and talk of production resuming in the Shreveport plant where the H3 and H3T are built is already starting to leak out from the company.

Dealers will be glad to hear the news, should it prove true, as many are running so low on inventory that they've had to shutter their showrooms temporarily. They'll still face a bit of a wait, however, as production isn't rumored to restart until November.

Once it does get back underway, the transition back to sales should be smooth, as Tengzhong plans to keep CEO James Taylor and the rest of the HUMMER leadership team on board. The new HQ location still hasn't been finalized, but it's expected to be located somewhere near Detroit.

Rumors have placed the price of the HUMMER sale at $150 million, but approval from the Chinese government must still be sought before the deal can be considered done. Taylor is confident that approval will be granted, however, telling the Chinese Xinhua news agency, "I think when [the] Chinese government sees the business plan we have, and sees the opportunity of the next generation of Hummer products, it will be very supportive of this."

Production itself will be contracted from GM through June 2011, with an optional one-year extension on the contract through June 2012. After that, Tengzhong will have to source the vehicles elsewhere, or negotiate the purchase of the plants from GM.

Some of the first Tengzhong-driven improvements to the H3 and H3T line are also expected soon, in the form of E85 flex-fuel capability being added to the range. Read our coverage of the sale announcement for more details on the HUMMER sale and Tengzhong's plans for the brand.

[HUMMERGuy]