GM’s sale of Hummer may face roadblocks in China
Posted Monday, Jun 8, 2009, 1:00 pm in Employee News
The Chinese heavy machinery maker that agreed to buy General Motors’ Hummer brand may find the biggest roadblocks to the deal in its home country, Reuters reported.
Following last week’s surprise announcement that Sichuan Tengzhong Heavy Industrial Machinery and GM had reached an agreement, analysts and Chinese media were buzzing with talk that the two companies may have jumped the gun, the news service said. The pitfalls range from regulatory to financing issues, Reuters reported.
GM said a day after its bankruptcy filing that it did not expect any regulatory scrutiny from the U.S. government on the deal, part of its attempt to restore profits by focusing on four core brands: Buick, GMC, Cadillac and Chevrolet, the news service said. But many China watchers say that resistance could actually come from China itself, as Beijing pushes for development of more energy-efficient technologies that go contrary to Hummer’s lineup of big SUVs, the story said. (Reuters/Automotive News)
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