Tengzhong starts talking with Chinese regulators to close Hummer deal
By Andrew C., 30 Aug, 2010. 0 Comments
With intent to close the deal within the year or in early 2010, Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. has started discussions with Chinese regulators over the agreement to buy the Hummer brand from General Motors. Tengzhong has a difficult hurdle ahead of it as the deal actually runs counter to China ‚ energy efficiency drive.
And even when Tengzhong does get Beijing ‚ authorization, it will have to work around the fact that Hummer suffered a 64% decline through September compared to the previous year, the steepest of any volume brand in the United States . John Zeng, a China automotive forecaster for market research firm IHS Global Insight, represents that population of people who think that Tengzhong could get itself into a ‚Äúblack hole‚Äù by financing the development of a greener Hummer all by itself. Chinese banks might not be that enthusiastic about the deal and it would be difficult to get loans. The landmark deal to acquire Hummer was signed last week, a Tengzhong spokeswoman confirmed. She added that the company has begun talks with the several regulatory bodies and that it will pursue the requirements for the application process.
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