When GM reached a tentative agreement regarding the sale of Hummer with China-based Sichuan Tengzhong Heavy Industrial Machinery Co. in October 2009, the only thing left was for the Chinese government to approve the deal. Three months later, the deal has still not received the green light and some are doubting whether it will be authorized at all.
“I don’t believe it has a great chance. It hasn’t really gotten any approval from the major government agencies,” said China auto industry analyst Wayne Xing.
Kevin Wale, President of GM’s China Operations, said he was optimistic the deal would be successful, yet unsure whether it would receive the required green light from the Chinese government. GM has expressed interest in closing the Hummer deal by the end of 2009 or early 2010, with Chairman and CEO Ed Whitacre pointing to January 31 as a deadline.
If the deal with Tengzhong doesn’t go through, we may risk seeing a repeat of the Saab fiasco. This time, however, it may be without the involvement of other governments.[Source: Freep]