Saturday, June 27, 2009

China Doesn't Want The Hummer !


As most Americans know, General Motors (GM) has been having a bit of trouble. In fact, if it wasn't for a government bailout, they would have already gone belly-up. One of the things GM is doing to save the company is to sell off or discontinue some of their car lines. Pontiac has been discontinued, and Saturn has been sold.

GM thought they had another of their product divisions sold -- Hummer. A Chinese company, Sichuan Tengzhong, had bid on the Hummer franchise and it seemed as though the deal would go through. But everyone may have assumed too much too soon. While the Chinese company wants to buy Hummer, it looks like the Chinese government doesn't like the deal.

Chinese state radio is broadcasting that the Chinese government will not allow the deal to go through (and they have the final say in the matter). State radio is saying there are two reasons why the deal will not be approved.

First, Sichuan Tengzhong is a construction equipment maker, and has no expertise in automobile manufacturing. The second reason is the environmental impact. A Hummer gets 15 miles to a gallon or less. This is not in line with the desire of the Chinese government to cut pollution from all manufacturers.

The company responded to the radio broadcast by saying, "The fact that it is from an article from a state media organisation does not mean it is government policy." I think they know they are wrong about that. Government radio is not known for its speculating. The company probably hopes they can change some minds before the government makes an official ruling.

Looks like GM better start looking for another buyer for Hummer, although that may be easier said than done. Gas hogs like the Hummer have no place in the future of transportation.

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