Hummer sale to be finalized by early 2010
By Andrew C., 30 Aug, 2010. 0 Comments
Despite reports that General Motors had already signed a deal last Friday to sell its Hummer brand to an investment partnership headed by Tengzhong , China 's Commerce Ministry said on Saturday that it has yet to receive an application signifying Tengzhong‚ bid.
There is speculation that this could constitute a regulatory obstacle to the deal. The Ministry of Commerce confirmed that Tengzhong has not yet submitted a copy of the purchase agreement to the Ministry, according to a report on Chinese state radio. The unnamed official further said that the Sichuan province is preparing its report on the situation to the Ministry. Since not much is known about the terms of the purchase agreement, the Ministry has decided not to say any more. Machinery maker Tengzhong, which is based in China ‚ southwest province of Sichuan , needs approval from the Chinese government, including the Ministry of Commerce, which is said to be the ultimate authority over the deal. Jim Taylor, the GM executive who has contributed much to the realization of the sale, says that Chinese officials have informed him that the deal will be treated favorably.
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