REPORT: China to block HUMMER sale to Tengzhong
2008 Hummer H2 - Click above for high-res gallery
General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.
According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head. Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.
Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:
Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.At this point, it seems equally as possible that a decision could either come down in short order or come only after a long series of protracted negotiations. Stay tuned. Thanks for the tip, Dave S!
Gallery: 2008 HUMMER H2
[Source: BBC]
Get a WordPress.com Blog
Reader Comments (Page 1 of 2)
TyWright 3:06PM (6/26/2009)
They'll just build a Chinese Hummer that looks exactly like a Hummer that isn't a Hummer.
Reply
StinkyPete 3:13PM (6/26/2009)
At least it would have a chance to survive a NHTSA crash test.
Erik 3:06PM (6/26/2009)
Great. Thanks commies.
Reply
airswingman 3:44PM (6/26/2009)
Smart move, i guess they found out the trick at the end
Enigmatic 3:13PM (6/26/2009)
Don't really blame them though, I cannot think of any ways to revitalize the HUMMER name.
Reply
AngeloD 3:41PM (6/26/2009)
""Don't really blame them though, I cannot think of any ways to revitalize the HUMMER name""
If GM dropped the H2 and put a decent diesel motor in the H3 variants, and engineered a straight front axle and removable top for the H3s, they'd have a decent chance of competing in the same segment as the Jeep Wranglers.
Enigmatic 5:01PM (6/26/2009)
Yeah, I don't doubt GM's ability to make great vehicles. And the HUMMER brand definitely had tons of potential. But it's just that the name is so tarnished in North American minds that I think the brand has lost all chance of viability.
anonymous j 10:05PM (6/26/2009)
tarnished... that's both all of GM and Chrysler, not just Hummer.
the4thheat 8:23PM (6/27/2009)
@assas1n
TARP I is Obama's doing? Better check your timeline there buddy.
Assass1n 3:14PM (6/26/2009)
Funny that if the situation was reversed, as in if a US company wanted to buy HUMMER, Obama would probably do the same thing. Sad thing is I expect China, a communist country, to control the sale of a private corporation- you wouldn't expect it from the (supposedly) free market US. But that's the sad state of affairs here back in the U.S.S.A.
Reply
Lanehog 3:21PM (6/26/2009)
You added an S to U.S.A. accidentally.
Assass1n 3:23PM (6/26/2009)
Yeah...accidentally.
Jrejre 4:06PM (6/26/2009)
Yes, that is exactly what Obama would do. He would block the sale of hummer. We are going to be just like china by 2012. Except that the world is also going to end in 2012. Also, Obama is an Arab and aliens are going to destroy earth tomorrow.
If only someone else had been elected, the recession would have ended immediately, pollution would turn out to be a hoax, and we'd all drive musclecars and rear-wheel drive hatchbacks.
paul34 6:00PM (6/26/2009)
Wow, jrejre, you're so smart and enlightened. Any other juvenile attempts at humor?
At any rate, from McCain's recent comments and being the guy everyone always knew he was, he would've done the same terrible stuff. What we needed was Ron Paul.
Assass1n 6:06PM (6/26/2009)
^ +1
I can't say I'm a huge fan of Ron Paul, but judging by "The One" we elected, he couldn't have done worse if he tried. Really, its only the libertarian 'we must be neutral, no wars' thing that I don't like about Paul. Everything else, especially the abolishment of the unconstitutional IRS, is great in my book.
Jrejre 7:10PM (6/26/2009)
Sorry, from now on I will put on my serious face and fret about how Obama is going to be the end of America as we know it. Who needs optimism when you can blame everything on a guy who's been in office for 5 months?
Assass1n 7:43PM (6/26/2009)
@ jrejre
Except for the small fact that in the small time O's been in office, he has squandered our security (g'tmo detainees), quadrupled the debt he inherited (bailouts, stimulus bill, cap and trade, TARP I, II) and generally just begun the transformation of America into a socialist welfare state. You are right to call out Bush- he turned into quite the spender as his term winded down, but were his fiscal policy (read: tax cuts) continued, there is a chance we could have paid back the debt he racked up. With the current administration out to tax anything that moves while not showing a shred of fiscal responsibility only puts our grandchildren and great-grandchildren on the hook for immense debt that is impossible to even calculate right now. So, yeah I think Barry has accomplished quite a bit in only 5 months considering it only took us 50 years to win the cold war and keep policies like his in Europe.
Zag 3:30PM (6/26/2009)
A lot of the "sold off" given away GM brands probably won't exist much longer than 3 to 6 months, anyway I think bar the stable non US brands.
US gov shouldn't have taken over GM they have screwed it marjory, it would have come out of the problems just would have been a long and slow process.
I'm pretty surprised the US gov sold off Chrysler though seeing as they did the prezes new car, lol. who's gonna keep that working now or do any updates probably gave the plans away along with the company.
Reply
BIG 3:40PM (6/26/2009)
are you smoking?
cadillac made the new presidential limo.
joe23521 3:44PM (6/26/2009)
The Chinese gov wants its auto industry to focus on competing in the green arena. Given the relative youth of the green car industry and the fact that China has such a late start in traditional auto making, you can't say that it's not a good strategy.
Reply