Hummer sale faces opposition in China

Posted on 29 June 2009. Tags: GM, Hummer

Roadblocks continue to dog GM – the latest news is that the Chinese government may well oppose the Hummer sale valued at $100 million. Chinese state radio, in a broadcast, said that the sale may be blocked for environmental reasons as the Hummer is a gas guzzling car.

Sichuan Tengzhong Heavy Industrial Machinery, the purported buyer, however disputed the reports saying, “The fact that it is from an article from a state media organisation does not mean it is government policy.”

“Some people may have views and speculation, but the Chinese government has a process that we respect.” But the fact remains that the purchase needs governmental approval which may not come because China is on a spree to clean up its environment.

The National Development and Reform Commission (NDRC) may also obstruct the sale because the Chinese construction equipment maker lacks expertise in car production, the state radio added.

Once again GM is facing problems. The sale would have helped GM in its efforts to reorganize and reinvent the company. If this sale does not go through, then it will have to look for another buyer.

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