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Cars Blog

China regulators face off on GM Hummer deal

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July 14, 2009 10:45 am
By Peter C. T. Elsworth

HONG KONG/DETROIT- As a decision looms over GM's controversial plan to sell its Hummer unit to a little-known Chinese firm, the two Chinese regulators in charge of approving the deal seem to be on opposite sides of the road, according to Reuters.

The National Development and Reform Commission, China's top economic planner, generally opposes a deal that captured global headlines last month, due partly to environmental concerns around the gas-guzzling Hummer and the vague plans that suitor Sichuan Tengzhong Heavy Industrial Machinery has for the brand, a politically connected source said.

But the influential Ministry of Commerce seems more supportive of Tengzhong, the Chinese machinery maker that launched its surprise bid for Hummer last month, the source said, adding a decision could come as early as the end of this month.

The divergent paths are unusual for Beijing, where regulators often speak with a single voice that comes from the top. Failure to reach consensus could delay a deal or even see it rejected.

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