News - Hummer
Hummer sale stumbles
Chinese regulators flag roadblocks to proposed Hummer takeover
9 Jun 2009
CHINESE reports suggest the proposed sale of Hummer to a little-known industrial company in Sichuan province is anything but a done deal and faces considerable financial and government hurdles.
Shanghai Securities News, China’s state-run financial newspaper, said the deal was likely to be blocked because local car companies “are not encouraged to make outbound acquisitions at the moment”.
The government has made it clear it wants to focus on fuel-efficient vehicles and also that most Chinese car-makers lack the expertise to run a foreign brand and network, let alone one that westerners have failed to make work.
Chinese sources have also questioned the ability of Sichuan Tengzhong Heavy Industrial Machinery to raise the finance to complete its proposed deal with GM, which was announced after its bankruptcy filing early last week.
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