Lending credence to reports from earlier this month, China’s state radio is claiming Sichuan Tengzhong Heavy Industrial Machinery’s acquisition of General Motors’ Hummer brand will be blocked due to environmental concerns. From the China National Radio, the Chinese government will block Sichuan Tengzhong Heavy Industrial Machinery’s purchase of Hummer because of the marque’s unfavorable environmental reputation. China is not known for its environmental policies but is looking to cut emissions from the manufacturing sector.
Sichuan Tengzhong Heavy Industrial Machinery said that “the fact that it is from an article from a state media organization does not mean it is government policy.” They also said that some people may have views and speculation, but the Chinese government has a process that we respect.
Meanwhile, the BBC report that China’s National Development and Reform Commission (NDRC) will also block Sichuan Tengzhong Heavy Industrial Machinery’s purchase of Hummer. The NDRC says that Sichuan Tengzhong Heavy Industrial Machinery lacks the experience necessary to run a successful car company.
Despite the recent claims, Sichuan Tengzhong Heavy Industrial Machinery says it will complete its deal to buy Hummer by October.
