|06-26-2009, 12:40 PM||#1 (permalink)|
Join Date: Mar 2009
Member # 132925
Location: North of Dallas
China blocks the purchase of Hummer
"China 'to block' Hummer takeover Hummer
Hummer had thrived from its military image and demand for large cars
A Chinese firm's bid to buy the gas-guzzling Hummer car brand will be blocked on environmental grounds, according to Chinese state radio.
Sichuan Tengzhong Heavy Industrial Machinery emerged as the surprise buyer for the brand earlier this year.
But China National Radio said Hummer is at odds with the country's planning agency's attempts to decrease pollution from Chinese manufacturers.
But Sichuan Tengzhong disputed the accuracy of the radio report.
"The fact that it is from an article from a state media organisation does not mean it is government policy," the company said in a statement.
"Some people may have views and speculation, but the Chinese government has a process that we respect."
The acquisition from General Motors needs Chinese regulatory approval.
The value of the bid was not disclosed at the time, but analysts say that GM would have made about $100m (£61m) from the sale.
National Development and Reform Commission (NDRC) will also block Sichuan Tengzhong from buying Hummer because the Chinese construction equipment maker lacks expertise in car production, the state radio added.
Sichuan Tengzhong said: "The view expressed on China National Radio's website did not quote or source anyone at NDRC."
"We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner."
Hummers were originally built as military off-road vehicles by a company called AM General.
GM bought the Hummer brand in 1999.
The brand took off as US consumers flocked to large cars and sport utility vehicles and were favoured by celebrities including Arnold Schwarzenegger.
But sales have suffered as the military image has become less popular and petrol prices surged.
Hummers weigh up to five tons and have fuel consumption of around 15 miles per gallon.
The sale of Hummer, known as "Han Ma" or Bold Horse in China, has been part of GM's plan to reinvent itself by concentrating on fewer brands."
|06-26-2009, 12:48 PM||#2 (permalink)|
Join Date: Jun 2007
Member # 93830
I think 15 mpg actually sounds really good for a 5 ton vehicle (someday there will exist a reporter who actually has their facts straight). It's silly how it's always called the gas guzzling brand when any other truck on the road gets the same as the similar sized hummer model.
39.5's, beadlocks, lifted and bagged
Last edited by ron b; 06-26-2009 at 12:49 PM.
|06-26-2009, 02:06 PM||#3 (permalink)|
This has already been disputed by Tengzong and GM
|06-26-2009, 02:42 PM||#4 (permalink)|
Join Date: Oct 2000
Member # 1956
I hope like hell the sale falls through. Either sell to a non Communist or let it die a respectable death.
Obama: "I am constrained, by a system that our founders put in place."
|06-26-2009, 06:11 PM||#5 (permalink)|
Join Date: Oct 2007
Member # 100811
Location: Marina Del Rey, CA
It's a non validated source for the report, a Chinese radio show which is referenced by media here. No comment from either government, GM , hummer or the chinese firm.
I'm sure the big truck firms in china have their nose out of joint with a small player buying a big US brand like Hummer...
I'm sure Dongfeng is screaming at the government since they're already making "hummer" clones...
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|07-15-2009, 06:40 AM||#7 (permalink)|
Join Date: Jan 2008
Member # 107089
Location: Grand Rapids, MI
BEIJING (Reuters) - China's Ministry of Commerce on Wednesday played down reports that it is at odds with the economic planning agency over a controversial deal for a little-known Chinese company to buy GM's Hummer unit.
Spokesman Yao Jian said: "The commerce ministry and the National Development and Reform Commission both hold a supportive attitude toward Chinese companies venturing abroad."
A politically connected source told Reuters that the NDRC seemed to oppose the deal, due partly to environmental concerns about the fuel-hungry Hummer car and the vague plans that suitor Sichuan Tengzhong Heavy Industrial Machinery has for the brand.
"This is not a decision for the government. It's an active strategy for companies in the course of globalization. That's a long-term trend," Yao told a news conference.
Tengzhong has begun the long official approval process by submitting documents related to the acquisition to the NDRC, said a source close to the matter.
"This kicks off the approval process," said the source, who asked not to be identified because of sensitive nature of the matter.
Several government agencies are involved in different aspects of the approval process, which means the commerce ministry would not require documents from Tengzhong until closer to the end of the process, said the source.
Yao said his ministry, which must approve any deal valued above $100 million, had not received an application.
GM hopes to finalize the sale by the end of the third quarter.