Hummer Deal Falls Through: Hummer Discontinued
General Motors' Hummer deal with Sichuan Tengzhong Heavy Industrial Machinery has fallen through. This could mean the end for Hummer, the brand associated with bling and high fuel prices. Hummer will now be discontinued.
China's Ministry of Commerce stated that Sichuan Tengzhong didnot provide a reasonable purchase plan that fit into the overall strategy of promoting the manufacture of fuel-efficient vehicles. This would have been Sichuan Tengzhong's first foray into passenger vehicles.
''It's only normal for the Chinese government not to approve the deal,'' said Lin Huaibin, a Shanghai-based analyst for IHS Global Insight. ''To allow this type of vehicle on a large scale isn't in line with government policy.''