Although the sale of the Hummer brand was supposed to have been completed yesterday, both General Motors and Sichuan Tengzhong Heavy Industrial Machinery Co. have pushed the deadline for the transaction until the end of February.
The delay, it seems, largely stems from the Chinese Ministry of Commerce. Although Tengzhong has considerable experience building industrial and construction equipment, it’s a newcomer to the consumer automotive industry — a sector that the Chinese government holds dear. Tengzhong has requested federal permission to enter the segment, but still awaits final approval.
Last month, both GM CEO Ed Whitacre and GM China President Kevin Wale indicated that progress was being made on the sale, and that Tengzhong is likely to win the Chinese government’s blessing. That, apparently, has yet to occur.
We wonder if something was lost in the bureaucracy. Automotive News reports that the Ministry of Commerce says it has not received an application for approval, while Tengzhong says it discussed the matter back in October 2009, when it first signed a memorandum of intent with GM to purchase the Hummer brand.
Source: Automotive News