The Chinese Ministry of Commerce (MOC), which giggles at the mere thought of a “Labor Day,” is reportedly hard at work this Monday and isn’t pleased with the plan for Tengzhong to purchase HUMMER from General Motors. Reuters is reporting that the MOC has already returned the application because it lacked the necessary detail for approval.
We expected word late last week about definitive agreements between GM and Tengzhong, which are presumed necessary prior to submittal to regulatory bodies in both the United States and China. It’s possible that agreements were reached without the public’s knowledge late last week, though it seems rather quick for the MOC to have reviewed and rejected a proposal so soon.
An unnamed Tengzhong spokesperson was quoted as saying, “We are still trying hard.”
Details of the agreement were recently leaked in China, though it is unclear if the deal has truly hit a setback. We’ll update you as we know more.[Reuters]