According to Legal Evening News, cited by Autonews, China's Ministry of Commerce has rejected for now Tengzhong's application through which it requested permission to bid for Hummer, because some absent details in the filing.
Tengzhong says it still wants to meet all requirements to take over the GM brand. "We are still trying hard," an unnamed spokesman was quoted as saying by China News Service.
Some of the terms of the future deal between the Chinese and GM have been leaked in late August. According to Chinese news portal 163.com, inside sources revealed parts of the content of the expected deal. The sale will make Tengzhong the owner of the intellectual property rights, including the trademark, patent right and other contents of Hummer. All of the sales network operated by Hummer will pass over to the Chinese, while maintenance, research and development will not be stopped.
Hummer will be operated by Tengzhong via an off-shore company, while GM will continue to build Hummers until 2012, as well as providing technical services. Before the same year, 2012, Tengzhong will launch two new models, the H3 and H4.
"Negotiations continue to progress and the transaction will be announced upon the signing of the definitive agreement as soon as appropriate," Hummer CEO Jim Taylor said in late August, when a final signing of a deal between the two sides was considered as being "days away."
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