Filed under: SUV, Truck, China, Government/Legal, Hummer, Earnings/Financials

China’s Sichuan Tengzhong Heavy Industrial Machinery, the company that recently surfaced as the top bidder for Hummer, is about to start talks with Chinese regulators to secure the deal. While General Motors has a tentative agreement with Tengzhong, the two companies have yet to receive the state’s blessing, which is necessary for the sale to go through.

Tengzhong, GM and Hummer have been working on a proposal to present to the National Development and Reform Commission, despite speculation that the deal will be blocked by those Chinese officials. Tengzhong reportedly remains optimistic, saying they haven’t heard anything from the authorities and don’t expect to until their proposal is actually submitted.

Speculation that the deal was in jeopardy began when a China National Radio station reported that government regulators would block the deal based on environmental concerns about Hummer vehicles and the fact that Tengzhong doesn’t have much experience as an automaker. Tengzhong is better known as a manufacturer of special-use vehicles, structural components for highways and bridges, construction machinery and energy equipment, so some have suggested this is little more than a publicity stunt for the company, but it certainly sounds like they are serious about the deal now.

[Sources: Reuters, Wall Street Journal]

Hummer buyer to start talks with Chinese gov’t to win sale? originally appeared on Autoblog on Mon, 29 Jun 2009 10:58:00 EST. Please see our terms for use of feeds.

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Hummer buyer to start talks with Chinese gov’t to win sale?

Filed under: SUV, China, Government/Legal, Hummer

As Chinese media outlets continue to voice derision over GM’s agreement to sell its unwanted HUMMER division to Sichuan Tengzhong Heavy Industrial Machinery Co., there are real questions as to whether or not the Chinese government will even approve of the purchase.

State-run media outlet Xinhua News Agency has suggested that Tengzhong’s interest in HUMMER may be little more than a publicity stunt, saying, “It couldn’t achieve this result (of raising its profile) even if it spent $100 million on advertising.” Commenting on Tengzhong’s deal to purchase HUMMER, China’s Minister of Commerce Chen Deming said:

We hope Chinese companies learn more about international market rules and development trends in their industries and make prudent investments.

While none of that sounds particularly promising, it doesn’t necessarily mean the deal won’t be approved, and HUMMER CEO Jim Taylor is reportedly moving forward with the automaker’s future plans as it looks for a new location outside GM’s corporate headquarters in the Renaissance Center to call home. According to the Nashville Business Journal, HUMMER could stay in the Detroit area or possibly join Nissan by taking root in Tennessee.

[Sources: Autocar, Nashville Business Journal]

Critics from China berate proposed HUMMER sale, rekindled automaker could be based in Nashville originally appeared on Autoblog on Thu, 25 Jun 2009 10:26:00 EST. Please see our terms for use of feeds.

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Critics from China berate proposed HUMMER sale, rekindled automaker could be based in Nashville