"The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing Hummer to innovate and grow in exciting new ways under the leadership and continuity of its current management team," said Yang Yi, CEO of Tengzhong. "We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S."
But Tengzhong's Hummer acquisition is far from getting completed as it still fights to convince the local government to give its final approval for the deal. Media reports issued in June revealed that China might oppose the deal, partially because it doesn't comply with the country's current demands to focus on green models. Additionally, Chinese officials claimed Tengzhong does not have the experience needed to run Hummer as its operations are limited to building heavy machinery equipment for use in road and bridge construction.
"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 said in a statement in late June after starting talks with Chinese officials.
The company however received an informal approval to continue negotiations with Hummer in mid July.
"The Ministry of Commerce and the National Development and Reform Commission (NDRC) both hold a supportive attitude toward Chinese companies venturing abroad," Yao Jian, ministry's spokesman was quoted as saying by Reuters.
Google News