General Motors Company's plan to sell the Hummer line of sport utility vehicles to a Chinese manufacturer fell through this week. GM is now scrambling to secure other offers. China's Sichuan Tengzholg Heavy Industrial Machinery offered the $150 million dollar bid that GM accepted for the Hummer brand. Due to Chinese regulations, Tengzhong could not finalize the deal.
Andrew Peaple, a businessman for Wall Street, predicted that the auto maker is willing to consider "long shot deals" if they present with "adequate financing." G.M.'s Hummer has failed miserably in terms of performance and consumers are largely unwilling to buy this sport utility vehicle. GM sold only 9,046 Hummers in the United States in 2009 versus more than 71,000 in 2006.
Hummer may go the way of other G.M. brands like the now defunct Saturn and Pontiac. Chinese officials Sichuan recognized Tengzhong's failure to apply for approval from the National Development and Reform Commission, the Ministry of Commerce, as well as other Beijing agencies. Beijing favors fuel efficiency and green technology from its automobile industry. It is speculated that the Hummer's lack of both was a factor in the failed deal between G.M. and Tengzhong.