Sichuan Tengzhong Heavy Industrial Machinery Co faces an uphill battle for approval by Chinese regulatory agencies in its hopes to buy Hummer even if it uses an offshore source to buy the General Motors' brand, according to National Business Daily (NBD).
Though the government never talks about it, NBD said Tengzhong's deal goes against the current government trend of developing new energy vehicles that makes the deal for the gas guzzling Hummer very difficult to be done.
Jian Xinguang, an auto industry analyst, said the Tengzhong-Hummer deal has to face major tests from the National Development and Reform Commission, Ministry of Commerce and Ministry of Industry and Information Technology.
He also said if Hummer can't be sold in the Chinese market, it would be a big loss for the company.
To sway public opinion about the high polluting, low fuel efficiency Hummer, Tengzhong General Manager, Yang Yi, said last year that the company wanted to develop a "green" Hummer brand.
A source told NBD that Tengzhong plans to build a Hummer plant next to its existing plant in Sichuan once the deal is done and there are plans for overseas plants in Russia and South Africa.
