China is set to gain a toehold in the North American car market through Sichuan Tengzhong Heavy Industrial Machinery’s acquisition from General Motors of Hummer, the hulking symbol of Americans’ fading love affair with gas guzzlers.

The two sides said on Friday that they had reached a “definitive agreement”, which remains subject to US and Chinese government approval. Terms were not disclosed. The purchase price, understood to be about $150m, could be affected by conditions set by the two governments.