China Likely to Halt Hummer

Bertel Schmitt
by Bertel Schmitt

China’s National Development and Reform Commission (NDRC) is unhappy with Tengzhong buying Hummer. The agency “is likely to reject Sichuan Tengzhong’s bid to buy the Hummer brand from bankrupt General Motors Corp,” Chinese state radio said today according to Reuters. Chinese state radio, being Chinese state radio, usually doesn’t report stuff that runs contrary to Chinese government intentions.

Officially, the NDRC is worried that Tengzhong, which makes special-use vehicles and highway components, does not have the experience and resources to run the Hummer business. The radio report also mentioned that Hummer would not fit in with the government’s policy of encouraging energy-efficient vehicles. Then there’s the matter that the Chinese car market is heavily fragmented, and official policy wants fewer makers, not more. That was not mentioned, but is widely understood as one of the reasons.

The NDRC issued an order last Friday requiring Chinese companies to report intended overseas acquisitions to Beijing before they sign any legally binding contracts.

Bertel Schmitt
Bertel Schmitt

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=""> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href=""> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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4 of 5 comments
  • Rod Panhard Rod Panhard on Jun 25, 2009
    Sichuan Tenzhong Heavy Industries should have an American, fluent in Chinese, translate some of the entries on the "Engrish Funny" blog to the PRC party hacks. Then they'll realize that a company with the anagram of S T H I should really be allowed to change their crappy name to "Hummer."
  • Superbadd75 Superbadd75 on Jun 25, 2009

    I love how all posts regarding Hummer have smashed up examples of their vehicles, but anything relating to the sale of this brand would probably be better represented by a picture of a train wreck.

  • KixStart KixStart on Jun 25, 2009

    The Hummers pictured in these articles often look like they've come out on the short end. In the case at hand, the pickup looks somewhat less deformed and the Hummer front passenger door looks inoperable. The scene looks like a city boulevard and I'd expect speeds of 45mpg, no more than 50 and perhaps even 40. There's an intersection in the photo, so speeds in this vicinity should be moderate. Surely one or the other driver hit the brakes before the accident occurred, further reducing speed? Or was one or both driving like an idiot? In any event, the front end of the beast is gone, which is a common theme in the photos I've seen posted here.

  • Poohbah Poohbah on Jun 25, 2009

    @ KixStart I agree. The Hummer seems to take a hit just like a Chinese vehicle. How appropriate.