Hummer Deal With the Chinese May Not Happen

It looks like deal between GM and China’s Sichuan Tengzhong Heavy Industrial Machinery to sell Hummer brand is on shaky ground.

It looks like deal between GM and China’s Sichuan Tengzhong Heavy Industrial Machinery to sell Hummer brand is on shaky ground. The likelihood that the Chinese government will give its approval to Tengzhong has been waning in recent weeks, leading the would-be purchasers to consider making the acquisition using an offshore investment vehicle to skirt the need for Chinese regulatory approval, according to Reuters’ report. GM and Tengzhong had originally set a January 31st deadline to complete the sale, later extending that time frame to February 28th.

The Chinese National Development and Reform Commission and the Ministry of Commerce are thought to have taken issue with the idea of such an environmentally unfriendly automaker coming under Chinese ownership. More over, Tengzhong has never actually made a passenger vehicle, and China already has over 100 companies producing automobiles. So, wait for February 28th. [via AutoBlog]

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