Thu, June 11, 2009
Business > Industries > Chinese firms' global move

Official: Purchase of Hummer against China's development trend

2009-06-09 10:39:17 GMT2009-06-09 18:39:17 (Beijing Time)  Xinhua English

A man walks past an advertisement featuring a Hummer vehicle at an auto market in Beijing Wednesday, June 3, 2009. China's Sichuan Tengzhong Heavy Industrial Machinery Co., said Tuesday it is buying the maker of luxury military-style SUVs from General Motors Corp. (AP)

HANGZHOU, June 9 (Xinhua) -- A domestic company's purchase of the gas-guzzling Hummer brand is against China's economic situation and the country's development, said an official with the Development Research Center of the State Council, the country's Cabinet Tuesday.

"If the Chinese company is just trying to stir media hype, that is understandable; if it really takes this step to buy, relevant departments should be strict and cautious with the approval, or reject the application if necessary," said vice director Lu Zhongyuan, at the China Opening-up Forum in Ningbo of eastern China's Zhejiang Province.

Tengzhong Heavy Industrial Machinery Co., which is based in southwestern Sichuan Province, said last Wednesday that it was buying Hummer and a preliminary deal had been inked.

"Buying a fuel-hungry and high-emission brand is directly against the current trend of energy saving and emission reduction," Lu said.

"The entire society should form the concept of energy-saving and environmental protection, no matter producers, investors, or consumers," he added.

The preliminary deal for a little-known Chinese company to buy Hummer from General Motors has triggered doubts and criticism from analysts.

Tengzhong has no experience in the passenger-vehicle market and mainly produces industrial machinery.

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