China’s NDRC likely to reject Tengzhong’s bid for Hummer

A state radio reported yesterday that China’s top economic planning agency is likely to reject Sichuan Tengzhong’s bid to buy Hummer from General Motors. The National Development and Reform Commission (NDRC) says it is worried that Tengzhong doesn’t have enough experience and resources to run the Hummer SUV business.

The report also said that Hummer’s gas-guzzling SUV image doesn’t fit with the government’s policy of encouraging energy-efficient vehicles.

Earlier this month, GM confirmed that Tengzhong will acquire the rights for Hummer along with its senior management and operational team. GM said it expects the deal, if successful, to secure more than 3,000 US jobs.

– By: Omar Rana

Source: Reuters