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China 'to block' Hummer takeover | China 'to block' Hummer takeover |
(about 8 hours later) | |
A Chinese firm's bid to buy the gas-guzzling Hummer car brand will be blocked on environmental grounds, according to Chinese state radio. | A Chinese firm's bid to buy the gas-guzzling Hummer car brand will be blocked on environmental grounds, according to Chinese state radio. |
Sichuan Tengzhong Heavy Industrial Machinery emerged as the surprise buyer for the brand earlier this year. | Sichuan Tengzhong Heavy Industrial Machinery emerged as the surprise buyer for the brand earlier this year. |
But China National Radio said Hummer is at odds with the country's planning agency's attempts to decrease pollution from Chinese manufacturers. | But China National Radio said Hummer is at odds with the country's planning agency's attempts to decrease pollution from Chinese manufacturers. |
But Sichuan Tengzhong disputed the accuracy of the radio report. | |
"The fact that it is from an article from a state media organisation does not mean it is government policy," the company said in a statement. | |
"Some people may have views and speculation, but the Chinese government has a process that we respect." | |
The acquisition from General Motors needs Chinese regulatory approval. | |
'Lacks expertise' | 'Lacks expertise' |
The value of the bid was not disclosed at the time, but analysts say that GM would have made about $100m (£61m) from the sale. | The value of the bid was not disclosed at the time, but analysts say that GM would have made about $100m (£61m) from the sale. |
National Development and Reform Commission (NDRC) will also block Sichuan Tengzhong from buying Hummer because the Chinese construction equipment maker lacks expertise in car production, the state radio added. | |
Sichuan Tengzhong said: "The view expressed on China National Radio's website did not quote or source anyone at NDRC." | |
"We do not yet have a definitive agreement, but are developing our proposals with GM and Hummer and we will continue to engage with the appropriate authorities in an appropriate manner." | |
Hummers were originally built as military off-road vehicles by a company called AM General. | Hummers were originally built as military off-road vehicles by a company called AM General. |
GM bought the Hummer brand in 1999. | GM bought the Hummer brand in 1999. |
The brand took off as US consumers flocked to large cars and sport utility vehicles and were favoured by celebrities including Arnold Schwarzenegger. | The brand took off as US consumers flocked to large cars and sport utility vehicles and were favoured by celebrities including Arnold Schwarzenegger. |
But sales have suffered as the military image has become less popular and petrol prices surged. | But sales have suffered as the military image has become less popular and petrol prices surged. |
Hummers weigh up to five tons and have fuel consumption of around 15 miles per gallon. | Hummers weigh up to five tons and have fuel consumption of around 15 miles per gallon. |
The sale of Hummer, known as "Han Ma" or Bold Horse in China, has been part of GM's plan to reinvent itself by concentrating on fewer brands. | The sale of Hummer, known as "Han Ma" or Bold Horse in China, has been part of GM's plan to reinvent itself by concentrating on fewer brands. |
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