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Posted by: Frederik Balfour on June 26, 2009
It looks like China will reject the proposed purchase of General Motors’s Hummer division by Sichuan Tengzhong Heavy Industrial Machinery Co. on the grounds that producing the GM gas hogs isn’t in line with the country’s environmental goals. The source is none other than China’s National Radio which said late Friday the deal was off.
You have got to give Beijing credit for its green stance against gaz guzzlers. Indeed, the government already has higher fuel emissions standards than most U.S. states, and has introduced tax breaks to encourage car buyers to buy vehicles with smaller engines.
You have to wonder why an obscure Chinese heavy construction machinery company with no experience in auto making ever wanted with Hummer in the first place. Now with the deal unlikely to go through, who is going to step in? A suitor from an oil-rich nation perhaps?
BusinessWeek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies. Eye on Asia’s bloggers include Asia regional editor Bruce Einhorn, Tokyo reporter Ian Rowley, Korea bureau chief Moon Ihlwan, Asia News Editor and China Bureau Chief. Dexter Roberts, and Hong Kong-based Asia correspondent Frederik Balfour.