The Hummer purchase plans of Tengzhong Heavy Industrial Machinery Company (Tengzhong) have been put on hold by the National Reform and Development Commission (NRDC), Securities Daily reported Thursday.
An official from the NRDC confirmed Wednesday that the department had received an application from Tengzhong but did not reveal the department's stance on the purchase.
Media reports said environmental concerns and issues about how Tengzhong plans to finance the deal were at the top of the NRDC's agenda. A NRDC source said Tengzhong's unclear development plan for Hummer had also led to reservations about the bid.
The Ministry of Commerce (MOC), on the other hand, described Tengzhong's bid for Hummer as a "normal business operation."
"Chinese enterprises have growing international scope despite the global financial crisis. Sichuan Tengzhong Heavy Industrial Machinery Company's plan to buy Hummer is a normal business operation," said Yao Jian, spokesman of the ministry at a news briefing on June 15.
A MOC source said the results of an examination of the bid would be made public at the earliest by end of July.
In response to the NRDC's capital concerns, Yang Yi, general manager of Tengzhong, said the money would come from the company's own assets and financial institutions. He said the relevant departments will not make any decision before they have reviewed the company's plans for energy saving and fuel reduction.
Hummer CEO Jim Taylor said in an interview that Hummer consumes the same amount of fuel as similar vehicles such as Land Rover, and new vehicles using substitute fuels such as diesel and electricity would soon come onto the market. He claimed new technology would enable Hummer to maintain its performance with less weight and reduced oil consumption.
In another development, General Motors Corp confirmed that Chinese auto maker Beijing Automotive Industry Holding Co has joined the bidding for its Opel unit.
Beijing Automotive was reportedly looking to acquire a 51-percent stake in Opel for 660 million euros (US$921 million).
(China.org.cn by Huang Shan, July 16, 2009)
