Tengzhong may buy Hummer through off-shore investments
General Motors had a hard time unloading Saab off of its hands until Spyker eventually came to its rescue. Now it looks like GM is facing a little case of déjà vu after reports that Tengzhong Heavy Industrial Machinery, the company that has been linked – for the longest time – as the would-be buyer of Hummer, is apparently getting cold feet.
According to Reuters, the Chinese National Development and Reform Commission and the Ministry of Commerce, the two governing bodies that would have to approve the sale of Hummer to Tengzhong is questioning the rationality of buying a brand that’s not necessarily famous for fuel-efficiency, in light of the fact that the country is now taking steps to become more eco-friendly. Guess nobody saw that coming, huh?
Continued after the jump.
In addition to that, China already has a ‘crowded’ auto market of over 100 brands and the entry of Hummer to that list would go against China’s intention of curbing the number of brands in the country. Add those two rather important pieces to the puzzle and you can see how Hummer may not be leaving the US after all – at least not yet.
In any case, Tengzhong has until the 28th of February to make to complete the deal. In the event the company does go for the green light, reports are saying that they might try to go around the rather strict guidelines of the Chinese government by using an offshore investment method to purchase Hummer.
We’re not at all entirely surprised by this late development. From the beginning, the very idea of a gas-guzzling monster like Hummer finding a home in a country that really has more than enough of those cars was as far-fetched as it was unlikely.