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Report: Hummer deal on the rocks, China doesn't want gas guzzlers

 
2 915 views Jun 26, 2009

China's green conservation goals don't mesh with Tengzhong's purchase of Hummer, according to state radio

China's green conservation goals don't mesh with Tengzhong's purchase of Hummer, according to state radio

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General Motors' deal with China's Tengzhong to buy Hummer was thought to be as good as done in early June, but today reports of chatter on China's state radio casts the sale in a different light. The gas-guzzling SUVs just don't fit with the conservation plans in place in Beijing.

So now the AP is reporting that the whole deal is likely to fall apart, with the Chinese government expected to reject Tengzhong's purchase of Hummer. The National Development and Reform Commission (NDRC) is the agency behind the decision. The NDRC also thinks Tengzhong doesn't have the expertise necessary to operate a global business like Hummer.

How the sale got so far along without hitting these roadblocks is a mystery. Tengzhong says it hasn't reached any final agreement with GM, and that's why it hasn't yet submitted a proposal to the Chinese government.

Fans of the Hummer brand may be heartened to hear it won't be going to a Chinese buyer, but the squarish SUV brand hasn't had a lot of other interest. Tengzhong had at least committed to keeping U.S. production of the Hummer alive.

If GM does manage to avoid killing Hummer outright by finding another buyer, things may not go so well for the 3,000 workers that build the vehicle and operate Hummer's U.S. headquarters.



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Comments (2)

  1. ma_adamk avatar adamk Posted: 6/26/2009 1:25pm PDT

    News that the Chinese might be haven't second thoughts about buying Hummer doesn't surprise me. Easier said than done and do they really want it? In the current economic climate, does anyone?
     
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  2. By  vitamin k Posted: 12/21/2009 11:14pm PST

    Well good luck with that one China. Bon appetite.
    Hummer was always the car for the rich of us. The reason most Americans bought the car was that tax credit the practically paid for the cost of the car that Bush Energy Secretary Spencer Abraham glibly defended by saying we don’t tell what kind of car that buyers can purchase with the tax cut when he was interviewed on 60 minutes.
     
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