Changfeng withdraws interest in Hummer

Shanghai, August 19 (Gasgoo.com) Chinese SUV maker Changfeng Motor Company withdrew its interest in buying Hummer after holding talks with General Motors on the matter, Reuters reported yesterday, citing sources with direct knowledge of the matter.

Changfeng, partly owned by Mitsubishi Motors Corp, changed its minds after touring Hummer's U.S. production facility, saying the brand's products were too expensive to sell to the Chinese military and demand from civilian buyers is not big enough to justify a purchase, especially with oil prices running near an all-time high, the report said.

Changfeng's own Leopard SUV sells to China's army for just $29,120, and it would be impossible to offer Hummer vehicles at a similar price, according to Reuters.

Moreover, Changfeng itself is reportedly to be bought by Guangzhou Automobile Group or Beijing Automotive Industry Holding Co, so it may not be able to make decisions alone even if it intends to acquire Hummer.

Other Chinese automakers, including SAIC Motor Corp and Dongfeng Motor Group Co, have also said they had little interest in Hummer.

GM said in June it planned to sell the Hummer brand. GM's president and chief operating officer Henderson was quoted as saying at the beginning of August that "If any Chinese companies are interested in buying Hummer, it will be certainly an option for us to look at. We need to be open to all ideas."