Report: Chinese Government Blocking Hummer Deal

Flushed with cash, China is taking over the world, including the automotive world. We have heard of Volvo attracting the attention of Beijing Automotive Industry Holding Corp (BAIC), then reports that Geely has officially bought over Volvo. Now, it is Hummer's turn to be in the limelight. News have been circulating for some time now regarding the sale of General Motors-owned Hummer to Sichuan Tengzhong Heavy Industrial Machinery Co.

Negative news have emerged however. According to Chinese radio reports, the Chinese government will block any potential deal because of two reasons. First, Hummer produces mammoth SUVs that heavily pollute the environment—the Chinese government apparently wants Chinese and affiliated automakers to go “green.” Second, Sichuan Tengzhong Heavy Industrial Machinery Co., as its name suggests, operates in the heavy construction equipment sector, and is seen as lacking the necessary expertise to manage a car company.

Despite all the reports, no official word is out from the National Development and Reform Commission or the Ministry of Commerce, nor from the involved companies. In fact, Sichuan Tengzhong Heavy Industrial Machinery Co. released a statement reaffirming their interest and the continued negotiations with GM, Hummer and the appropriate authorities. This saga could take some time to resolve it seems. Stay tuned.

AboutSeow Yaohan

Seow Yao Han strives to bring you the latest and the most comprehensive information on cars available in Malaysia. But it's never easy for him to talk and write cars in this part of the world because what you lust after is often not what you drive home. When the euphoria of test-driving that branded, super-expensive sports car dies down, he just goes home in his less-than-glamorous ride.