June 27, 2009

GM downplays risk to Hummer sale

A General Motors executive has denied a Chinese radio report that Beijing will block the sale of its Hummer division to a Chinese company.

The Wall Street Journal said Saturday that the executive, whose name was not revealed, dismissed the report from China National Radio that regulators would reject the deal due to environmental concerns and the buyer's lack of experience building cars.

The executive chalked the report up to pure speculation, and the Journal described the China National Radio report as an analysis written by a reporter.

The proposed purchase of Hummer by Sichuan Tengzhong Heavy Industry Machinery requires government approval. Company officials will meet with regulators on Monday with the discussions expected to last several weeks.

General Motors put Hummer on the block as part of its bankruptcy overhaul and new emphasis on fuel-efficient vehicles.