GM, Tengzhong See Progress in Hummer Sale
The deadline for Sichuan Tengzhong Heavy Industrial Machinery Co. to buy Hummer from General Motors was extended because of progress -- not a lack of it.
According to a source familiar with the negotiations, both GM and Tengzhong saw plenty of progress through January 31, and decided it was better to adjust the deadline instead of scrapping the entire deal.
"Both parties think enough process is being made," said the source. "Both sides are seeing movement, and they're continuing to make way through the process."
As had been reported, the delay in the transaction stems from a number of regulatory and legal approvals deemed necessary, the largest of which involves Tenghzong -- a machinery manufacturer -- receiving permission by the Chinese Ministry of Commerce to enter the consumer automotive segment.
The new agreement simply extends the original timeframe -- regarded by some within GM as "too optimistic" -- to allow the regulatory process to continue.
Despite the new timeframe, GM still plans on idling H3 production in Shreveport, Louisiana, until a deal is finalized. A Hummer spokesperson says the brand still has sufficient supply of the SUVs to last through the end of the month, if need be.