Dealers raise Hummer price after Tengzhong failure

Shanghai, February 26 (Gasgoo.com) While Tengzhong is disappointed at its failure to buy the Hummer brand from General Motors, Hummer dealers in Shanghai are overjoyed and taking the opportunity to raise the SUV's price, People's Daily reported today.

Yesterday, after hearing Tengzhong's Hummer deal failed, dealers in the Chinese supercity immediately marked up the price of Hummer. The price of Hummer H3X produced in 2009 rose by 20,000 yuan ($2,930) to 750,000 yuan, and Hummer H2 is seeing its price up by 100,000 yuan to 1.38 million yuan.

"Our Hummer is directly imported from abroad through formal channels, and the sales and after-sales service will not be affected by Tangzhong's failed acquisition," a Hummer dealer told Shanghai Morning Post, adding that that at present there are Hummer cars for sale in store, but the prices have started to rise.

In Shanghai, Beijing and other cities covered by the China IV Emission Standard, the price of the gasoline-guzzling Hummer has been raised from 730,000 yuan to 750,000 yuan. In cities not regulated by this emission standard, the price rise from 710,000 yuan to 730,000 yuan.

"Our boss said the price of the Hummer H2, now only one car available, will increase by at least 100,000 yuan to 1.38 million yuan," said the dealer. GM is reportedly planning to close its Hummer business soon, and this means less Hummer vehicles will be left for sale. China's annual Hummer sales remain probably between 300 to 500 units.

GM's Hummer sale to Tengzhong has not won China's regulatory approval as "Tengzhong could not provide a reasonable purchase plan" and the government is urging renewable, green and eco-friendly energy consumption. "The main reason is that Hummer is energy inefficient," an analyst said.