Time Running Out For The HUMMER-Tengzhong Deal

[Rich Parsons]

Per: http://www.thetruthaboutcars.com/time-running-out-for-the-hummer-tengzhong-deal/

Time Running Out For The HUMMER-Tengzhong Deal


By Edward Niedermeyer on February 23, 2010

Although the Chinese government takes much of February off for New Year festivities, GM’s deal to sell HUMMER to Sichuan Tengzhong has exactly one week left before a self-imposed deadline for completion arrives. The deal is being held up by China’s Commerce Ministry which has publicly said that it wants the Chinese auto industry to consolidate and become “greener,” two goals that are severely at odds with Sichuan Tengzhong’s HUMMER aspirations. Now, the Financial Times reports that Tengzhong may be trying to pull an end-around on the Chinese government by pursuing a purchase via an offshore investment vehicle. This would (in theory) evade the requirement for the Commerce Ministry’s approval. In reality …