A Chinese company has reached a preliminary agreement with General Motors Corporation to buy its Hummer Brand.

Tengzhong Heavy Industrial Machinery Company Ltd., based in Sichuan province, expects the deal to be complete by the end of the third quarter.

If approved, Tengzhong would be the first Chinese company to sell vehicles in North America.

The deal is expected to save more than 3,000 U.S. jobs in manufacturing, engineering as well as Hummer dealerships around the country.

The transaction also includes plans by the investor to aggressively fund future Hummer product programs.

The deal came one day after GM, one of the world's largest automakers, filed for Chapter 11 bankruptcy.

Xinhua News Agency correspondents reporting from New York. (XHTV)

(Xinhua News Agency June 3, 2009)