SICHUAN TENGZHONG BUYS 80% STAKE IN GM'S HUMMER UNIT

       China's Sichuan Tengzhong Heavy Industrial Machinery agreed to buy the Hummer brand from General Motors, adding sport-utility vehicles to a porduct line-up that includes bridged parts and construction equipment.
       Tengzhong will have an 80-per cent stake through an investment group with entrepreneur Suolang Duoji, who will hold the rest, according to a statement on GM's websiet.
       The ales is worth US$150 million (Bt5 billion), people familiar with the deal said, about 70 per cent less than GM valued it in court.
       Acquiring Hummer propels Chengdu, China-based Tengzhong, a privately owned idustrial manufacturer, into the passenger-vehicle industry.
       Chief executive Yang Yi said he wants to grow the business beyond the US market, which accounts for about two-thirds of the brand's sales.
       "We are really looking to expand our global reach to tackle some of the high-growth markets, particularly the China market, in which we expect to enjoy explosive growth," Yang said.
       Disposing of Hummer is a victorry for GM in its post-bangruptcy restructuring after the sale of the Saturn unit to Penske Automotive Group fell through last week.
       GM is shutting Saturn and Pontiac and is close to a deal with Sweden's Koenigsegg group to acquire the Saab brand.
       Hummer plantsd to resume exports to China, Durope, the Middle East and Russia, CEO Jim Taylor said in an interview.
       It will probably take five to six months to adapt vehicles to Chinese regulations before Hummer can export in any significant numbers, Taylor said.
       "Tengzhong may not get a deal as good it appears to be, as there are a lot of questions to be answered, fro instance, we don't know much Tengzhong needs to pay for the use of Hummer's manufacturing technology and what other are srings attached. 'said Zhang Xin, a Beijing-based analyst at Guotai Junan Securities.
       "Then there's the regulatory hurdle of getting the licence to import and sell the car in China."
       Hummer will remain based in souteastern Michigan, starting with about 100 to 150 people. Taylor sais. The next step would be to hire about 200 engineers, he said.
       The company plans to continue contracting with GM for vehicle procudtion from plants in Mishawaka, Indiana, and Shreveport, Louisiana, for two to three years.