|
BIZCHINA> Top Biz News
![]() |
|
Hummer bid hurdles still remain, experts say
By Li Fei (China Daily)
Updated: 2009-06-16 08:08
![]() Sichuan Tengzhong Heavy Industrial Machinery may still have to overcome many hurdles to win regulatory approval for its controversial acquisition bid for the Hummer brand even after a crucial ministry signaled no rejection.
Tengzhong's bid for the now bankrupt US car giant General Motor's Hummer brand is "rational and normal" given the current global financial crisis, Yao Jian, a spokesman for the Ministry of Commerce, told reporters yesterday. Yao said his ministry, a key government body that has a say in the approval of Tengzhong's bid, had not yet received any application from relevant parties. This is the first official remark concerning the deal, which has aroused heated debate in the country on whether the virtually unknown makers of special-use vehicles and bridge and highway components has the industry expertise and resources to turn the Hummer business around.
And analysts said the government, which has identified energy saving and efficiency as one of its key tasks, is unlikely to grant a go-head to the deal. "We cannot interpret (the spokesman's) comments as a signal that government will let the deal go through, as there are other powerful bodies involved, such as NDRC (National Development and Reform Commission)," said a senior industry watcher, who asked not to be named. "NDRC, which has been the advocator of energy efficiency and savings efforts, is very unlikely to approve the deal as it may invite public outcry," the analyst said. But analysts said even though the image of the gas-guzzling Hummers might not fit with China's energy saving efforts, the market for the iconic off-road sports utility vehicle (SUV) was still large in the country. "Like it or not, Hummers will still find many buyers here", said Jia Xinguang, an independent auto industry analyst. China is the bright spot for luxury carmakers such as Porsche SE, amid the global financial crisis. China may pass Germany as its second-biggest market within three years, said Helmut Broeker, Porsche's China head. Agencies contributed to the story (For more biz stories, please visit Industries)
|
东城区| 郑州市| 都昌县| 阿拉善左旗| 慈利县| 盘山县| 张掖市| 濉溪县| 乌苏市| 枣庄市| 合水县| 肥东县| 萨迦县| 齐齐哈尔市| 伊宁市| 涡阳县| 太白县| 白城市| 开远市| 鄂托克旗| 河源市| 竹北市| 朝阳市| 武冈市| 崇信县| 新巴尔虎右旗| 清河县| 瑞金市| 咸丰县| 康马县| 固原市| 铁岭县| 高邮市| 峡江县| 靖安县| 株洲县| 保靖县| 名山县| 万源市| 蓬安县| 临高县|