GM will be redoubling its efforts to finalize the sale of its HUMMER brand to Chinese company Tengzhong by the end of the year, according to the company’s treasurer.
The announcement comes on the heels of Penske Automotive’s decision to pull the plug on its plan to purchase Saturn from GM, leaving the automaker no choice but to close the brand.
According to our sources, everything is still on track with the HUMMER deal, but their goal of having a deal complete by September was overly optimistic considering the multitude of liquidation and restructuring efforts GM is executing right now.
The next challenge will be the regulatory approval in China, though the most troublesome regulator, the National Development and Reform Commission, has already bowed out of the discussion, leaving it in the hands of the Ministry of Commerce. The MoC isn’t entirely pleased with the U.S. Government right now), but has made generally supportive comments about Tengzhong’s acquisition of HUMMER.
Source: Dow Jones News Service