Is the military-inspired Hummer going for good? Following the collapse of a protracted deal between General Motors and Chinese truck and military vehicles maker Sichuan Tengzhong Heavy Machinery regarding the sale of the Hummer brand, the US carmaker seems likely to wind down the ailing Hummer SUV business.
The move is a far cry from last October’s joint statement that Sichuan Tengzhong – despite considerable scepticism from the Chinese government, which has the power of veto on Chinese company acquisitions overseas – had agreed to buy the Hummer brand, trademark, trade names and intellectual property license rights, and would assume existing dealer agreements. The Chinese company had ruled out, however, the possibility of moving Hummer manufacturing operations to China.
In a statement released this week, Sichuan Tengzhong said it had not been able to obtain Chinese regulatory approval for the Hummer purchase. The Chinese government had voiced concerns that as a domestically-focused manufacturing company, Sichuan Tengzhong did not possess the capacity or managerial know-how to control an international vehicle brand, particularly one whose sales have plummeted in recent years.
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