The talks are decisive in light of recent rumors saying that the Chinese will oppose the deal. The rumors have not been commented upon by neither side, the only official word being "we're working on it".
"We don't have a definitive agreement but we're developing our proposals with GM and Hummer, and we'll continue to engage with the appropriate authorities in the appropriate manner," Christina Stenson, Brunswick Group (PR agency for Tengzhong) spokeswoman was quoted as saying by The Wall Street Journal.
The main reason behind a projected rejection of the deal by the Chinese side is the fact that, being a construction machinery manufacturer, the Chinese say the company lacks the required expertise to own a car manufacturer.
An unnamed GM executive on the other side told the source that talks about a stay in the buy is pure speculation and treated as such. To this day, neither GM nor Tengzhong have presented though the final agreement to Chinese regulators, adding to the "pure speculation" that something may go wrong.
Last week, Hummer's CEO Jim Taylor tried to cover Tengzhong and hinted that the Chinese will only bring money into the business, which will be then put to use by Hummer's experienced team.
"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."
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