Hummer sale to Chinese Tengzhong in jeopardy

Sichuan Tengzhong Heavy Industrial Machinery, the Chinese firm that has signed a tentative deal with bankrupt General Motors to buy out Hummer, is about to start talks with Chinese regulators to secure the deal, according to news reports. The companies involved have yet to receive the Chinese government’s approval for the sale to take place.

Tengzhong and GM have been working on a proposal to present to China’s National Development and Reform Commission, despite speculation that the deal will be blocked by powerful Chinese officials. In true Chinese fashion, Tengzhong says they are optimistic and that they haven’t heard anything from the authorities.

Speculation that the deal was in jeopardy began when a China National Radio station reported that government regulators would block the deal based on “environmental concerns” about Hummer vehicles and the fact that Tengzhong doesn’t have much experience as an automaker.

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