Chinese company backs out of buying Hummer

GM said Wednesday that its bid to sell Hummer to Sichuan Tengzhong Heavy Industrial Machines Co. fell through. The Chinese manufacturer said it failed to get clearance from regulators in Beijing within the proposed timeframe for the sale.

"We are disappointed that the deal with Tengzhong could not be completed," said John Smith, GM vice president of corporate planning and alliances. "GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner."

GM did not disclose a timeframe for winding down the brand, which employs 3,000 people in the U.S. Hummer will be the second division after Saturn that GM failed to sell as planned. Its one successful sale was Swedish car brand Saab, which is going to Dutch carmaker Spyker Cars NV in a $74 million deal.

Tengzhong said it was disappointed with the deal’s collapse.

GM is now looking at two previously submitted bids which GM turned down in favor of a deal with China’s Sichuan Tengzhong Heavy Industrial Machinery.

China can’t save us now. Who can or would want to afford a Hummer right now? Sign of the times. Oh no! More layoffs!

yahoo.com