| Baton Rouge: A definitive purchase agreement has been reached for the sale of Hummer from GM to the Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. If approved by Chinese officials and completed as planned, the acquisition is expected to ensure that Hummer vehicles will continue to be manufactured at the former GM facility in Shreveport, La., through at least June 2011.
As a result of GM's recent bankruptcy reorganization, the Shreveport facility now is owned by Motors Liquidation Company, the "old" GM entity, which currently leases the facility to GM.
Gov. Bobby Jindal issued the following statement on Sichuan Tengzhong's acquisition of the Hummer brand and the future of the Shreveport facility:
"Protecting the jobs and future of the Shreveport facility has been one of our top priorities since early last year, and we certainly see this expected development as a positive move in that direction.
"While we are pleased that Hummer vehicles will continue to be assembled in Shreveport through at least June 2011, we will continue to pursue all actions necessary to help keep this facility permanently open and return it to full production levels.
"Since learning of GM's troubles last year, we have remained in regular communications with GM executives to explore and pursue all options to restore the Shreveport facility to full operations. In recent months, our outreach efforts have expanded to executives of Hummer and Motors Liquidation Company, as well as Sichuan Tengzhong representatives, as we've worked to preserve long-term production of Hummer vehicles in Shreveport."
Louisiana Economic Development Secretary Stephen Moret issued the following statement about some of the critical next steps for the companies and Shreveport's competitive advantages:
"Although we are encouraged by this significant and expected development, final completion of the sale transaction will require approval by Chinese authorities, and of course there is work to be done to convince Hummer executives that Shreveport is the right long-term location for assembly of Hummer vehicles. We currently expect that Hummer executives will consider a variety of locations for long-term manufacturing operations, including but not limited to Shreveport.
"Northwest Louisiana boasts some of GM's most productive workers and the Shreveport facility was one of the most modern in the GM network prior to the company's bankruptcy reorganization. These factors represent significant competitive advantages and will help us secure the best possible long-term outcome for the facility.
"In addition to the Hummer opportunity, we have several viable options on the table that we will continue to pursue to secure and increase jobs at the Shreveport facility. This will remain a top priority of our administration."
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