Talks finally start. The latest Reuters report says General Motors and Tengzhong will begin talking with Chinese regulators this week in a bid to obtain government approval for Tengzhong to buy the Hummer brand by the end of September.
"We will start discussions with the Chinese government this week on the Hummer deal," Michael Albano, a spokesman for GM's Asia Pacific operations, told the news agency. "We can't sign the deal unless we have approval from the government."
There have been a lot of rumors surrounding the deal since June 2 this month, when GM announced that it had tentatively agreed to sell the Hummer brand to Tengzhong, and was expecting the deal to close in the third quarter.
But the two parties are slow in formally presenting the deal to the Chinese regulators. Speculations reagrding the deal are saying it is very likely to be blocked because of environmental concerns and Tengzhong's inexperience in auto-making.
Chinese state radio, in a broadcast, also said last Friday the sale may be blocked for environmental reasons.
But Tengzhong was quick to say that "the fact that it is from an article from a state media organization does not mean it is government policy."
"Some people may have views and speculation, but the Chinese government has a process that we respect," said Tengzhong.
The riddle is still left to be solved. Hope this deal won't just be a flash in the pan!
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Gasgoo: auto parts source
