Deal for Hummer hits a dead end

A Chinese-GM deal that was on the table for Hummer is now off. This may signal the end for the rugged off-roading brand that struggles to find a profitable niche in an increasingly environmentally-conscious world.

The potential Chinese buyer of GM's Hummer has taken the wheels off the deal. Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. stated in their communications to the media that a deal could not be made because the business purchase plan failed to meet time-sensitive government objectives. Hummer, a bold vehicle offering, has faced criticisms for its hulking size, perceived ecological irresponsibility and poor fuel economy. One expert has stated, "The brand proposition of Hummer itself goes against the strategic outline of the Chinese government, which is mainly that they want to produce energy-efficient vehicles." Consistent with this pro-green sentiment, another expert is quoted as saying that “For [the Chinese government] to approve the Hummer deal would be a big contradiction.” After nine months of negotiation, the failing of this transaction has forced GM to announce that it will wind down production for their Sport Utility Vehicle.