China’s government, which is focused on cutting down the breadth of its auto industry by focusing on fuel efficient vehicles, is apparently unlikely to approve the sale of General Motors’ Hummer unit to Sichuan Tengzhong Heavy Industrial Machinery, according to reports out of the Asian nation.

In other words, we are too optimistic to draw conclusions about whether or not China will approve of the purchase of Hummer. However, it does seem unlikely that Tengzhong would enter into the deal with the belief that the Chinese government would scrap the idea.

Moreover, Sichuan Tengzhong has to convince at least two Chinese government agencies that it can turn Hummer around, leading analysts to suggest that the chances of the deal going through are slim. We have to wish many luck to GM and Hummer this time.

General Motors Corp. has struck a deal to sell its Hummer truck unit to a Chinese industrial business. A privately owned Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., based in China, will acquire the truck brand, which has been part of GM since 1999. Tengzhong said it plans to keep Hummer's management team.

"We plan to ... allow Humer to innovate and grow in exciting new ways under the leadership and continuity of its current management team," said Yang Yi, chief executive of Tengzhong. Yang said the deal "will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S.". The companies said the deal would likely close by the end of September.

As part of the deal, some GM plants will continue to build the Hummer brand for the new owner, at least for awhile. The company said its Shreveport, La., plant will keep building Hummers for the new owner until at least 2010.

According to a report by the Wall Street Journal, GM plans to announce a tentative sale of the Hummer brand less than a day after filing for Chapter 11 bankruptcy protection. Although GM won't release the name of Hummer's possible future owner, the sources say that a deal could be struck by the end of the third quarter and the H2 and H3 will continue to be produced at GM's plants in Indiana and Louisiana.