Somehow, the Chinese noticed something which appears to have eluded GM: Tengzhong is not a car manufacturer. Being a construction machinery, the Chinese say the company lacks the required expertise to own a car manufacturer.
Tengzhong now acts on securing the government's support, although the prospects are grim. "Some people may have views and speculation but the Chinese government has a process that we respect,' the company said in a statement quoted by theautochannel.com.
"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," Tengzhong added.
Yesterday, Hummer's CEO seems to have anticipated the Chinese government's alleged opposition and said he only wants Tengzhong to bring the money, and not get involved in actually running the company.
"All I need is cash," Taylor told China Daily. "We were looking for those companies that have the financial resources to fund our future development, and keep the brand and dealers stay and survive."
But the lack of experience is not the only problem. After quickly becoming one of the biggest automotive markets in the world, China is trying to restructure its automotive sector, in which over 100 manufacturers are battling for every customer.
One of the main ways to restructure is to join the many companies in fewer conglomerates. Obviously, a foreign brand shopping spree outside the country does nothing towards that goal.
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