With all the noise about GM’s interruptus of the Opel sale, we could forget that there is a brand GM wants to sell, badly: Hummer. Since June it had been announced that the sale of Hummer to little-known Tengzhong in China is as good as done. Except that it wasn’t.
A few weeks ago, China’s Commerce Ministry was asked whether they had approved the sale. Their answer: “There is nothing to approve. We haven’t even received an application.”
In the meantime, the application finally made it to the Ministry in Beijing. Where the application was promptly turned down. The Beijing bureaucrats did read the document, and could not discern what Tengzhong was really buying. (Just the brand? The technology? The plans? The intellectual property? Facilities? Explain yourself!) Tengzhong was ordered to go home and come back with a new application that details what Tengzhong is exactly getting for their money. “The renewed application is meant to state the exact assets,” writes Gasgoo.
According to the usually unreliable Chinese news reports, “Tengzhong claimed that the acquirement would involve the Hummer brand only, excluding the intellectual property and facilities issues. Domestic manufacturing has not been mentioned either.” If Tengzhong was to receive the Ministry’s “hao ba” (ok) to the deal, that second application better show some IP and technology on the sales slip, or the answer will be “bu hao” (no good).