Chinese media reports say that Sichuan Tengzhong Heavy Industrial Machinery Co., the company lined up to take Hummer off GM’s hands is targeting US sales and a more fuel-efficient model.
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BVV reported that the company’s CEO has said he is prepared to be patient.
“We need to be an investor who has certain amount of patience,” Chief Executive Officer Yang Yi reportedly said in an interview. Profit will “depend on how much the vehicle can penetrate the US market and on how wide the reach will be in the global market.”
“Tengzhong’s chances of making a profit on Hummer are really low given the demand,” said Yu Bing, an analyst at Pingan Securities Co. “Nobody would put a good company on sale – Chinese buyers should be really careful.”
Hummer plans to develop an H4 model that uses 9 litres of gasoline per 100 kilometres (26 miles to the gallon), Yang said.
He declined to say when the new model will go on sale.
Analysts have raised concerns that Tengzhong may meet regulatory obstacles ahead of the purchase, with the Chinese government reportedly unhappy with the proposed sale.
