TLP: Chinese Give Up on Hummer, Drive Home Frustrated
After months of begging, General Motors realized Chinese manufacturer Sichuan Tengzhong Heavy Industrial Machines just didn't want that Hummer. The American automaker got off its knees and said it would not be turning any more tricks to unload the brand, but would shut down operations.
Tengzhong swore it had the money for the deal, really, but couldn't afford to maintain any kind of an ongoing relationship without a loan. And GM was not going to be a cheap whore who gets pushed out the door burping up bubbles.
The sale fell through, Tengzhong said, because the company could not get the approval of the Chinese government, which has been trying to emphasize environmental protection and less dependence on imported oil, the New York Times reported.
From Nick Bunkley in the NYT:
In addition, people close to the negotiations had said that the biggest obstacle to emerge in the last few days was not regulatory approval, but rather bank financing. While Tengzhong has the cash to pay for the Hummer brand, it needed bank financing to operate the division, redesign vehicles and set up new production plants in China.
A spokesman for Hummer, Nick Richards, said G.M. had no specific timetable for completing the wind down, but left open the possibility that G.M. would be open to new bids.
Oh well, GM had to know it would be tough to make Hummer sexy enough for the Chinese, as full of testosterone as it was. After all, it took forever for GM to get rid of that hot Swedish number it had, finally convincing a Dutch buyer to come out of a hash haze to buy it. And that spacey chick GM kept around, who was always easy to get, left town last fall.