Chinese government unlikely to approve Hummer purchase deal?
According to a report from Bloomberg, state-owned Chinese news agency Shanghai Securities News is predicting that it is unlikely the Chinese government will approve the purchase of Hummer from General Motors by Sichuan Tengzhong Heavy Industrial Machinery Co. Why? Apparently, China actually wants to reduce the number of automakers operating within its borders and favors keeping manufacturers with an eye towards fuel efficiency. Of all the labels people have put on the Hummer brand, fuel efficient hasn't exactly been one of them. According to Tim Payne, a spokesman for Tengzhong:
"Some people may have views and speculation but the Chinese government has a process that we respect. We have only just signed an MOU but as we develop our proposals with GM and Hummer we will continue to work with the appropriate authorities."In other words, it's too early to draw conclusions about whether or not China will approve of the purchase of Hummer. However, it does seem unlikely that Tengzhong would enter into the deal with the belief that the Chinese government would squash it, no?
[Source: Bloomberg]
Reader Comments (Page 1 of 2)
Taglane 3:34PM (6/05/2009)
So they'd rather just steal the designs instead of buying them?
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airswingman 5:05PM (6/05/2009)
China is playing the big game unlike the INdia and others
jeff 5:18PM (6/05/2009)
Steal or buy what? Earth killers? LOL.
adam1drift 3:42PM (6/05/2009)
funny how the communist government of china sounds a lot like the Obama Administration.. Hmmmmm.....
sorry GM looks like we’ll be looking for another buyer.
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Redeemed 3:53PM (6/05/2009)
If you cut "China" and inserted "USA" throughout the entire story it's still believable.
Sad state of affairs here.
andy 5:15PM (6/05/2009)
+1
Lad 3:43PM (6/05/2009)
It's hard to sell a turkey as a swan when everyone has heard it gobble!"
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Taglane 3:56PM (6/05/2009)
LOL WUT
BrianFL 3:46PM (6/05/2009)
you can almost hear the greenies celebrating
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joe23521 3:52PM (6/05/2009)
Their consolidation strategy is a right one. But this is still a good opportunity for them and shouldn't be squandered.
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Human Powered 4:26PM (6/05/2009)
The China Auto market does need consolidation with 50+ brands in play, however Tengzhong may not be interested in marketing Hummer in China. As stated earlier the Chinese government is pushing fuel efficiency and lower pollution. Additionally the Chinese people seem to prefer smaller engines and cars as well. There may be opportunity to market Hummer outside of China and the US.
dukeisduke 3:56PM (6/05/2009)
I think Hummer's days are numbered. Also, I think a Chinese-owned Hummer would drive away U.S. customers.
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adam1drift 4:12PM (6/05/2009)
maybe Penske should pick it up and have Saturn/Hummer...
...
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gerrrg 4:16PM (6/05/2009)
Wow, even the Chinese are rejecting Hummer? When a mass polluting nation like China rejects Hummer, you know the brand is dead.
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Human Powered 4:20PM (6/05/2009)
Keep in mind that China is only the second most polluting nation. The US still has a substantial lead in that department with about a billion fewer people mind you.
Jake 4:29PM (6/05/2009)
I call BS on that statement Human_Powered.
Americans use energy much more efficiently and cleanly than Chinese.
We use more because we're more a more developed (and free) nation.
MajorGeek 4:35PM (6/05/2009)
@Human Powered; or so someone told you 3 years ago so repeating it without a reference is just spreading lies. I can not find any concrete info on this, but I am sure it exists. There are also ton of factors. Some are more polluted due to disasters, while others may be more polluted due to automobiles. I see a lot of mention of greenhouse gases however, so maybe that is your reference point? If so, it seems that Australia is is actually worse, again the data I can find seems to be at least 5 years old, some going back to 2000.
Greg 6:30PM (6/05/2009)
@Jake:
And which country is bankrolling the factory-based pollution in China, either through direct factory ownership or cheapest-possible-vendor contracts that encourage skirting regulations?...
Having our businesses off-shore our pollution doesn't make us cleaner. Just less honest about it.
bogman12 11:17AM (6/06/2009)
hey idiot - US is #1 polluter in the world
Rick C. 4:54PM (6/05/2009)
Not surprising. The Chinese government is slowly but steadily attempting to reduce resource usage and decrease pollution. This impending action is a reflection of that policy.
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