Unlike a lot of car blogs, we failed to post a “that’s all folks” wrap-up on the Hummer to China deal last week. Mostly because GM’s insistence [by press release] that it had “entered into a definitive agreement that will allow Tengzhong to acquire GM’s premium all-terrain HUMMER brand,” didn’t answer the real question about the deal. Namely, whether it would fly past the Chinese officials who shot it down on the last go-round. And sure enough, Automotive News [sub] reports that Chinese officials didn’t even know there was a deal to approve.
The Ministry of Commerce has yet to receive an application concerning Tengzhong’s purchase of Hummer. Currently, the Sichuan province commerce office is preparing to report the situation to the Ministry of Commerce, and because nothing is known about the specific content of the purchase agreement, for now (the ministry) will not say any more
Sounds “definitive” alright. So, who didn’t get greased? Or was the application just lost in the mail?
Well, it may be that the application required a definitive agreement, so they signed one with an out if the ministry does not approve. That is pretty common.
P.S. Where has Bertle been the last couple of weeks?
China does business much different than the U.S. It’s a candy mint no it’s a breath mint, no it’s Communist, no it’s Capitolist, no it’s both. As long as your business fits in with the Government officials, you’re off and running. There is no hold up, or red tape, or DOT, it’s simply what’s in it for the government. With that resolved this deal will close faster than the door on a tire kicker at a dealership.
Maybe the capitalists at the Commerce Ministry have a Penske among them.