Update

[sleeve]

http://www.autoblog.com/2009/06/15/report-sichuan-tengzhong-to-finalize-hummer-deal-in-third-quart/

[DRTYFN]

Old and inaccurate news. Looks like the Chinese government won't be ok'ing the deal. Hopefully a U.S. investor will be snatching up Hummer.

[sleeve]

New update
http://www.autoblog.com/2009/06/26/report-china-to-block-hummer-sale-to-tengzhong/:beerchug:

[DRTYFN]

:OWNED:
REPORT: China to block HUMMER sale to Tengzhong
General Motors' pending deal to offload its unwanted HUMMER brand may have hit a major snag. Although no official word has come from the Ministry of Commerce or the National Development and Reform Commission, state-run radio organizations are reporting that the Chinese government will indeed block the sale of HUMMER from GM to Sichuan Tengzhong Heavy Industrial Machinery Co. It's impossible to know exactly how this whole mess will play out, but these reports clearly jive with the general sentiments we've been hearing since the deal was first announced.

According to Chinese radio reports (via the BBC), there are two main objections to the HUMMER deal. First, the brand's environmental credentials don't match up with the direction the Chinese government wants its automakers to head.OMG!!! The Chinese are the worst polluters on the planet!! Second, there are questions as to whether Tengzhong has the expertise to properly manage a large automaker as it's business dealings so far have all been in the construction equipment segment.

Not so fast, says Tengzhong. In a newly-released statement regarding these latest reports, the company had this to say:
Some people may have views and speculation, but the Chinese government has a process that we respect... The view expressed on China National Radio's website did not quote or source anyone at NDRC. We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner.
At this point, it seems equally as possible that a decision could either come down in short order or come only after a long series of protracted negotiations. Stay tuned. Thanks for the tip, Dave S!

[HummerMann]

A lot seems to have transpired on the Hummer Deal in the last 48 hours.

http://www.hummerguy.net/

http://hummersonline.blogspot.com/

[HUMMERcustoms.com/TAZ]

HEY if you go to the Hummersonline blog and go down looking at the pics of the Hummers you will find a rear view night pic shot of my H2. It is the only night pic. I do not mind but, wonder how they got the pic.

TAZ

[sleeve]

China's Sichuan Tengzhong Heavy Industrial Machinery, the company that recently surfaced as the top bidder for Hummer, is about to start talks with Chinese regulators to secure the deal. While General Motors has a tentative agreement with Tengzhong, the two companies have yet to receive the state's blessing, which is necessary for the sale to go through.

Tengzhong, GM and Hummer have been working on a proposal to present to the National Development and Reform Commission, despite speculation that the deal will be blocked by those Chinese officials. Tengzhong reportedly remains optimistic, saying they haven't heard anything from the authorities and don't expect to until their proposal is actually submitted.

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. Tengzhong is better known as a manufacturer of special-use vehicles, structural components for highways and bridges, construction machinery and energy equipment, so some have suggested this is little more than a publicity stunt for the company, but it certainly sounds like they are serious about the deal now.

[Sources: Reuters, Wall Street Journal]

[sleeve]

http://www.autoblog.com/2009/06/29/report-hummer-buyer-to-start-talks-with-chinese-govt-to-win-sa/

[HummerMann]

Will this saga ever end?

Hummer's future in doubt, again
Posted Jun 29 2009, 01:15 PM by Kim Peterson

Filed under: GM, Kim Peterson, China

General Motors (GMGMQ) tried for months to sell its Hummer brand, but massive gas guzzlers aren't that attractive anymore. So imagine the company's relief when a Chinese firm said it wanted to buy Hummer, which is known as "Hon Ma," or Bold Horse, in China.

But now it looks like the Bold Horse is staying in the stable. The Chinese government will probably quash the bid because the Hummer conflicts with environmental conservation goals, according to The Associated Press.

It's unclear whether the interested company, Sichuan Tengzhong Heavy Industrial Machinery Corp., can overcome the government opposition. The company is privately owned, the AP reports, so it isn't subject to the heavy regulations that state-owned firms are. But the government can still stop foreign acquisitions.

GM is desperate to offload Hummer, though, and a company spokesman said Monday it will try to get the green light for the sale by the end of September.

Sichuan Tengzhong has no experience in the car industry, which reportedly is another reason the Chinese government is concerned. If GM couldn't make Hummer work, how will a small firm with no expertise?

[sleeve]

Chinese National Radio recently reported that Tengzhong wouldn't be allowed to purchase Hummer due to environmental concerns. The company released a statement after that news broke saying that while there was no "definitive agreement," the CNR report wasn't based on facts from the government regulatory body in question, and Tengzhong is still working on the deal.

Last week, in a report titled "Tengzhong may get green light from the regulators for its acquisition of Hummer," CNR's take on where things appears to back up Tengzhong's view that the game is not yet played. The company's discussions with the National Development and Reform Commission (NDRC) and the Ministry of Commerce -- it needs approval from both parties -- have begun, and three options for concluding a deal were proposed.

If Tengzhong can convince the authorities of its expertise and business blan, and gets approval from both parties, it wants to set Hummer up in Sichuan province. If there is resistance to setting Hummer up directly, Tengzhong could try to base the company in one of China's ten bonded areas -- harbor points where the vehicles aren't officially "in" the country until taxes and fees are paid -- but this could impact the company's ability to sell Hummers in China. Or, the company could simply become a foreign investor in Hummer.

It isn't clear whether those options are Tengzhong's take on the purchase, or if that was just more speculation from CNR. Hummer had no comment on the matte