• Jun 5, 2009
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]


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  • 29 Comments
      • 5 Years Ago
      Man China is missing the boat in about 10 years when Hummers and SUV's will be back popular again..... and fueled with propane or clean diesel or nat gas. Their loss, some fund will figure this out and strike.

      People want cars they can use, not tin cans they can only use for one thing.

      The first person to buy this and power it with alternative fuels wins imo. What a pr bonanza that would be.
        • 5 Years Ago
        I'm reasonably sure the Chinese will be able to design a metal foot locker on wheels in 10 years if need be.
      • 5 Years Ago
      What about someone like Mahindra?
      • 5 Years Ago
      Anyone who buys Hummer has to believe they can sell them. And anyone who is likely to buy it knows that the cost of fuel is going to go up again when the economy recovers. So, why buy a brand that produces vehicles people may won't want if the price of fuel goes back to where it was last summer? It hammered Hummer sales then and, it will do the same thing again once the market rebounds.

      And why does it sound strange to anyone that China is worried about air pollution?
      They have a massive pollution problem that makes the air in major industry cities today look like the air in LA circa 1970. Climate concerns aside, it ain't healthy. Why add to it?
      • 5 Years Ago
      If you agree Carbon Dioxide is a dangerous pollutant then US is number one. However top 20 cities in the world for true pollution you can see and even taste in the air is all China and India baby!

      MOST DANGEROUSLY POLLUTED CITIES
      PARTICULATE MATTER AIR POLUTION 2004
      (Micrograms per cubic meter)
      Source: The World Bank
      Particulate
      RANK CITY COUNTRY Matter
      ---- --------- ------------- -----------
      1 Cairo Egypt 169
      2 Delhi India 150
      3 Kolkata India 128
      4 Tianjin China 125
      5 Chongqing China 123
      7 Kampur India 109
      8 Lucknow India 109
      9 Jakarta Indonesia 104
      10 Shenyang China 101
      11 Zhengzhou China 97
      12 Jinan China 94
      13 Lanzhou China 91
      14 Taiyuan China 88
      16 Beijing China 89
      17 Chengdu China 86
      18 Ahmadabad India 83
      19 Anshan China 82
      20 Wuhan China 79



      • 5 Years Ago
      China is a very strange place. The government is currently using their puppet Xinhua news adjacency to smear this deal and try to turn public opinion against it. Except...since when does public opinion matter to the Chinese government? They've already decided to block the deal, it's not like anyone had a say in it.
      • 5 Years Ago
      WooHoo price drop!!

      How about we just kill Hummer
      • 5 Years Ago
      Wow, even the Chinese are rejecting Hummer? When a mass polluting nation like China rejects Hummer, you know the brand is dead.
        • 5 Years Ago
        @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.
        • 5 Years Ago
        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.
        • 5 Years Ago
        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.
      • 5 Years Ago
      does the world really need Hummer ?
        • 5 Years Ago
        of course the world needs hummers................................oh...wait your talking about the vehicle...................
      • 5 Years Ago
      So they'd rather just steal the designs instead of buying them?

        • 5 Years Ago
        Steal or buy what? Earth killers? LOL.
        • 5 Years Ago
        China is playing the big game unlike the INdia and others
      • 5 Years Ago
      Their consolidation strategy is a right one. But this is still a good opportunity for them and shouldn't be squandered.
        • 5 Years Ago
        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.
      • 5 Years Ago
      @Majorgeek,

      "@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."

      You missed my point. You accused him of spreading lies because he doesn't have a reference for what he says. You try to refute his point. Do you have a reference? Uh, no, not really, but you're sure it exists.

      "I was pretty damn clear that the only data I found claimed Australia was worse."

      So you've found some data that says that Australia, with a population of 21 million (less than California), has a worse pollution problem than the US with a population of more than 300 million. And you believed it. Why?

      Oh, that's right. It was on the internet.


      • 5 Years Ago
      WOW. I'm surprised they would reject an opportunity like that. It seems like Hummer is doomed.
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