BEIJING — Tengzhong Heavy Industrial Machinery hopes to close its deal to acquire the Hummer brand from General Motors before October, according to company General Manager Yang Yi.
Yang, in an interview with Reuters, said Tengzhong, which is based in Sichuan province and has no previous experience as a car builder, has no plans to transfer Hummer equipment or technology to China.
GM announced plans to sell Hummer to Tengzhong nearly two weeks ago. Since then, numerous reports in China's media have suggested the privately owned company, which makes heavy-duty highway and construction equipment, may have a difficult time in getting the deal approved by China's central government.
Reuters quoted Yang as saying, "We think a deal should be completed by the third quarter." He declined to specify the sale price, which various sources have estimated at $100 million to $500 million.
Yang said Tengzhong plans to retain the Hummer management team, including CEO Jim Taylor, and will keep the Hummer dealer network in place in the U.S.
"There will not be a China Hummer and a U.S. Hummer," Yang said. "There is only one Hummer."
As for Hummer's reputation as a gas guzzler, Yang said, "We want to make a green Hummer" that will have appeal in emerging markets outside the U.S. and China.
Inside Line says: Beijing could still put a stop to the deal. But if Tengzhong doesn't need to borrow government funds to help finance the acquisition, Hummer may yet wind up in Chinese hands. — Paul Lienert, Correspondent
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