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