Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale]]>http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/http://www.autoblog.com/2009/07/05/hummer-hanging-on-tengzhong-in-talks-with-chinese-government-to/#commentsFiled under: , ,



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]

HUMMER hanging on: Tengzhong in talks with Chinese government to clear sale originally appeared on Autoblog on Sun, 05 Jul 2009 18:08:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>acquisitionchinahummerhummer saleHummerSalenational development and reform commissionNationalDevelopmentAndReformCommissionndrcsuvtengzhongtengzhong hummerTengzhongHummerSun, 05 Jul 2009 18:08:00 EST<![CDATA[REPORT: China to block HUMMER sale to Tengzhong]]>http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/#commentsFiled under: , , , ,


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]

REPORT: China to block HUMMER sale to Tengzhong originally appeared on Autoblog on Fri, 26 Jun 2009 14:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chinachinese nrdcChineseNrdchummerhummer salehummer sale blockedhummer sale chinaHummerSaleHummerSaleBlockedHummerSaleChinanational development and reform commissionNationalDevelopmentAndReformCommissionnrdcsichuan tengzhongsichuan tengzhong heavy industrial machinerysichuan tengzhong heavy industrial machinery cosichuan tengzhong hummerSichuanTengzhongSichuanTengzhongHeavyIndustrialMachinerySichuanTengzhongHeavyIndustrialMachineryCoSichuanTengzhongHummertengzhongtengzhong hummerTengzhongHummerFri, 26 Jun 2009 14:57:00 EST<![CDATA[China manufactures two million extra vehicles]]>http://www.autoblog.com/2006/06/08/china-manufactures-two-million-vehicle-surplus/http://www.autoblog.com/2006/06/08/china-manufactures-two-million-vehicle-surplus/http://www.autoblog.com/2006/06/08/china-manufactures-two-million-vehicle-surplus/#commentsFiled under: , , ,

For the past decade or so, China has been looked upon by the automotive industry as something approaching a gold rush in waiting, with millions of units ripe for the selling. That may yet be true, but it's hard to reconcile that with the notion that China overbuilt to the tune of two million excess vehicles last year, and plans are in the works for about eight million more units. This, according to the country's National Development and Reform Commission.

Chinese vehicle sales are projected to hit 9 million units by the time 2010 slips from the calendar, so perhaps there won't be a glut of vehicles to drive prices and profits down. In the meantime, Chinese automakers are increasingly turning to exports to keep shifting units, which makes sense given that its vehicles are roughly 50 percent less expensive than European offerings, and 30 percent less expensive than Japan and South Korea.

What do you think, will China pan out? Or are automakers (both foreign and domestic) putting too much stock in its potential? Speak your mind in 'Comments.'

[Sources: Shanghai Daily; Taipei Times]

China manufactures two million extra vehicles originally appeared on Autoblog on Thu, 08 Jun 2006 17:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Brilliance AutoBrillianceAutocherychinese carChineseCarNational Development and Reform CommissionNationalDevelopmentAndReformCommissionovercapacityoverproductionThu, 08 Jun 2006 17:03:00 EST