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Chinese Government Balks At HUMMER Deal: Second Verse, Same As The First

Posted in auto industry, GM, Hummer, Newsworthy, Politics by Suzanne Denbow | July 14th, 2009 | Leave a Reply |


After exploratory talks to sell Hummer to a Chinese outfitter collapsed last August, the door to the Eastern buyers market was thought to be shut. Last month, however, small Chinese company Tengzhong Heavy Industrial Machinery Corporation placed an unexpected offer on the table to unload GM of its cumbersome gas-guzzling brand. Reluctant to mire themselves in the same problems currently burdening large vehicle sales in the U.S., China’s National Development and Reform Commission adamantly opposed the deal, hoping to stonewall any further discussion. Fortunately (or unfortunately, depending on how informed you are of national politics and/or the Axis of Evil), China’s Ministry of Commerce sees the potential profit to be made from such a purchase and is lobbying in favor of Tengzhong’s bid, entrenching the Chinese government in a deadlock.

To date, neither department has offered a comment on the matter, but sources familiar with the situation doubt the purchase will be authorized.

Source: AutoNews

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