Chinese Media Criticize Tengzhong for Hummer Bid

Although some people were pleasantly surprised with Chinese company Tengzhong's bid for Hummer, media publications in China, along with automotive industry analysts, raised an eyebrow when hearing of such a proposal. Basically, Chinese experts think that Tengzhong has absolutely no experience in the auto sector since it is a company specialized in designing machinery for building roads and bridges.

"Tengzhong is just a privately owned company that has no experience in the car industry and Hummer is a niche brand that suits a small group of people," Zhu Junyi, an auto analyst with Shanghai Information Centre, was quoted as saying by AFP. "Tengzhong has no experience in producing passenger vehicles, adding difficulties for the company to manage the brand," Zuo Xiaolei, an economist with China Galaxy Securities, told Xinhua news agency.

Furthermore, Chinese media are questioning the need for a brand like Hummer in China, given the current economic environment and the attributes of Hummer's models. Hummer has often been criticized for the low fuel efficiency of its product range, with this particular fact often regarded as the main reason for North American collapsing sales.

"China's Hummer fever should come to a stop. The purchase comes at a time when China should be buying fewer Hummers, not more. The deal deserves criticism more than it does pride," an article published by the Global Times reads.

Although he admits that China would represent a key market for Tengzhong, a company official revealed that in case the deal goes through, the Chinese automaker would attempt to sell Hummer models worldwide.

"The company's strategy is to take the Hummer brand global and that should certainly include the Chinese market," an official with Tengzhong's public relations agency told AFP.