Shanghai, September 16 (Gasgoo.com) China's Ministry of Commerce said yesterday that it has not received any application from Sichuan Tengzhong Heavy Industrial Machinery Co. to bid for General Motors' Hummer brand, xinhuanet.com reported.
Ministry spokesman Yao Jian made the remarks in response to recent media reports that Tengzhong's application to buy Hummer was turned down by the commerce ministry. As far as he knew, Yao said, the provincial government of Sichuan, in which Tengzhong is located, had submitted applications to other government bodies but not to Commerce.
Sources with the National Development and Reform Commission (NDRC), China's top economic planner, told Xinhua on Aug. 24 it was beyond their job scope to ratify Tengzhong's Hummer deal as the application said Tengzhong only planned to buy Hummer's brand instead of assets or shares.
Last week, an NDRC official also said Tengzhong's bid for the Hummer brand should be considered a trade in technology and not simply an overseas investment. Therefore, the Ministry of Commerce, not the NDRC, would have ultimate authority over the deal.
Sichuan Tengzhong unveiled its plans in early June to buy the Hummer brand. The company's lack of car-making experience has stirred doubts, while the Chinese government seems hesitant about taking over a gas-guzzling SUV marque.
