GM’s iconic HUMMER brand is to be sold to a privately-owned Chinese company.

General Motors (GM) has confirmed the sale of its HUMMER brand to Chinese engineering company Tengzhong.

HUMMER’s senior management and operational team will retain their jobs, and in total the deal will help secure more than 3,000 US positions.

Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. This move will see it expand into the premium off-road vehicle segment, and the company said this will be a “catalyst for HUMMER’s growth in the US and around the world.”

Yang Yi, CEO of Tengzhong, said: “We will be investing in the HUMMER brand and its research and development capabilities, which will allow HUMMER to better meet demand for new products such as more fuel-efficient vehicles in the US.”

HUMMER’s CEO, James Taylor, commented on the announcement: “With Tengzhong’s investment and strong support, we will be able to make our visions a reality. This transaction, if successful, will allow us to embark on a more aggressive global expansion, ensuring a successful future with our new partners.”

Backed by the US government, GM filed for bankruptcy protection on Monday (1 June), which gives it time to restructure its finances while being protected from creditors. This will see the US government take a 60% stake in the company, and in addition it has said it will invest $30 billion (£18.5bn) into the carmaker. The restructuring will see the loss of 20,000 jobs across GM’s US production plants.