GM announced today that its deal to sell the Hummer brand to a Chinese heavy machinery company has failed and it will begin the process of closing the Hummer operation. In this tough economic climate you can understand why large acquisitions fail... but is that what caused the deal to fall apart? I don't think so.
In the New York Times article, the author states, "The buyer, Sichuan Tengzhong Heavy Industrial Machines, said in a statement that it had withdrawn its bid because it was unable to receive approval from the Chinese government, which was trying to put a new emphasis on limiting China’s dependence on imported oil and protecting the environment."
The Chinese government decided they were too green to approve a deal to allow a Chinese company to own one of the auto brands tied most closely with Western consumption. That's right, there will be no bling for Chinese Hummers. Instead, Chinese companies will have to focus on brands and products that reflect a new emphasis on limiting China's dependence on imported oil and protecting the environment. This video from Newsy analyzing if green policies had anything to do with China's rejection of Hummer provides some nice insight.
What next? Will they raise taxes on fuel to subsidize biofuels and green energy? No, that would be too Communist.
Sound off and give us your two cents on the future of Hummer and the new Green China.
(note from Chris: Powell (this post's author) was so fed up with gasoline powered cars (and the oil they use from the middle east) he decided he was going to build his own electric car using the body of a gas guzzler.)
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