Changfeng, AM General in talks on Hummer bid

Hunan Changfeng Motor Co is in talks with AM General LLC about a joint acquisition for Hummer brand, general manager of Changfeng Motor said.

"We never quit talks on acquiring the brand," said Zhengchu Chen in an interview with Beijing based Jinghua newspaper.

"But now instead of doing it alone, we decide to form partnership with AM General to reduce risk as the global economy falters, " Chen explained. "We have to always adjust our plan to market conditions."

The two sides are exploring possibilities of building a joint venture company in the U.S. and future production will continue to focus on the local market, according to Chen.

Changfeng showed its intention to buy the brand early in March but a Reuters report, citing an informed source, said in mid-August that "Changfeng has decided not to proceed with the talks after a tour of Hummer's U.S. production facility, as it saw only limited potential for it to market the vehicle."