Chinese Regulators Lock Horns Over Hummer
As little known Tengzhong itches to buy Hummer for reasons unknown, the two Chinese regulators who have to chop (put a big red stamp under) the deal can’t agree whether it’s a great or a dumb idea, Reuters reports. Chop the deal or chop off the head?
China’s top economic planner, the National Development and Reform Commission (NDRC), appears to oppose a deal to make gas-guzzling Hummer Chinese.
The influential Ministry of Commerce (Mofcom) seems to be more supportive, a person with the necessary political guanxi (connections) told Reuters. Whatever the decision will be, it could come as early as the end of this month, Reuter’s source on the inside predicts.
Reuters calls the different opinions “unusual for Beijing, where regulators often speak with a single voice that comes from the top.”
Hummer and Tengzhong need approvals from both bodies. With only one stamp of approval, the deal is dead.
What’s Fritz The Weasel Henderson saying to all this?
“We’re supporting the sale process but ultimately the purchaser’s approval process needs to go forward and be approved and I don’t control that, but our expectation is that this deal can be done.”
“Can” be done. Not “will” be done.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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