GM’s deal with a Chinese industrial firm to buy their Hummer brand may be in jeopardy because there are signs that the Chinese government may reject the sale. Automotive News reports:
China’s top economic planning agency is likely to reject Sichuan Tengzhong’s bid to buy the Hummer brand from bankrupt General Motors, state radio reported on Thursday.
The planner, the National Development and Reform Commission (NDRC), is worried that Sichuan Tengzhong Heavy Industrial Machinery, which makes special-use vehicles and highway components, does not have the experience and resources to run the Hummer business, the report said.
This would be a blow to GM if the sale is scuttled. Getting rid of their niche brands, including Hummer, Saab and Saturn, is a key component to their restructuring plans.