HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale
Chinese National Radio recently reported that Tengzhong wouldn't be allowed to purchase Hummer due to environmental concerns. The company released a statement after that news broke saying that while there was no "definitive agreement," the CNR report wasn't based on facts from the government regulatory body in question, and Tengzhong is still working on the deal.
Last week, in a report titled "Tengzhong may get green light from the regulators for its acquisition of Hummer," CNR's take on where things appears to back up Tengzhong's view that the game is not yet played. The company's discussions with the National Development and Reform Commission (NDRC) and the Ministry of Commerce -- it needs approval from both parties -- have begun, and three options for concluding a deal were proposed.
If Tengzhong can convince the authorities of its expertise and business blan, and gets approval from both parties, it wants to set Hummer up in Sichuan province. If there is resistance to setting Hummer up directly, Tengzhong could try to base the company in one of China's ten bonded areas -- harbor points where the vehicles aren't officially "in" the country until taxes and fees are paid -- but this could impact the company's ability to sell Hummers in China. Or, the company could simply become a foreign investor in Hummer.
It isn't clear whether those options are Tengzhong's take on the purchase, or if that was just more speculation from CNR. Hummer had no comment on the matter.
[Source: Hummer]
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Reader Comments (Page 1 of 1)
airswingman 8:53PM (7/05/2009)
it is not because the chinese goverment it is because the brand is Bottomless Pit, and none of the american brand is now worthy of confidence
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Cellien 9:50PM (7/05/2009)
The HX concepts were in Transformers 2. Freaking awesome looking. O _ O
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Judy Zik 11:42AM (7/06/2009)
It would seem that Nashville HQ wont last long. If they manage to set up in China everything but North American sales and marketing will quickly be moved.
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the4thheat 1:17PM (7/06/2009)
And if they don't manage to set up in China the alternative is even worse for Hummer since there's about a 0% chance of salvaging anything.
the4thheat 1:15PM (7/06/2009)
Wait they can legally set up at the harbors so that the company isn't technically in China? I'm pretty sure that the government wouldn't let this kind of thing fly if they really don't want them to buy Hummer.
I suppose if they were going to keep all manufacturing in the US they could just have an office building in some random weird harbor but none of this makes any sense.
Might just be nonsense people are making up as "possible loopholes"
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the4thheat 1:20PM (7/06/2009)
Their plan to set up in Sichuan isn't bad. The area could use the economic development and the Chinese government knows it too, so they're obviously trying to make this deal sound like something that gels with the government's goals.
Sichuan could definitely use the factory since it still looks like 1890's China =(
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the4thheat 1:21PM (7/06/2009)
Of course I meant parts of Sichuan, the one big capital city looks nice. But the other parts of the province that got wrecked by the earthquake are basically in shambles.
Jack 11:50PM (7/06/2009)
Last week, in a report titled "Tengzhong may get green light from the regulators for its acquisition of Hummer," CNR's take on where things appears to back up Tengzhong's view that the game is not yet played. http://www.discount-laptop-battery.co.uk/dell-8n544.htm The company's discussions with the National Development and Reform Commission (NDRC) and the Ministry of Commerce
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