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.
