Hummer deal may get finalized soon: Souces

The deal would mark the first major Chinese acquisition of a distressed US auto asset during the current economic downturn. Chinese regulators will decide whether to approve the plans after the deal is finalized, the source said.

Sichuan Tengzhong Heavy Industrial Machinery has been in detailed negotiations with GM since it announced a plan in June to acquire the rights to the premium off-road Hummer brand from its U.S. owner.

"Tengzhong executives have been traveling between the U.S. and China in the past months and more will arrive in Detroit soon," said the source, who was not authorized to speak to the media about the deal because of its sensitive nature.

"If there are no big surprises, an agreement could be finalized next week," the source added.

Tengzhong declined to comment. GM representatives in China and the United States could not immediately be reached for comment.

Tengzhong is expected to retain Hummer's existing senior management and operational team as it previously promised, the source said.

It will also keep the dealership network of the U.S. sport utility vehicle unchanged, added the source. Hummer is currently sold in more than 30 countries, including China.