• RESEARCH

Mike: For China, Will Hummer Be a Bummer? 

Posted on Jun 05 | 10:06

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This might not be a case of “What’s good for Sichuan Tengzhong Heavy Industrial Machinery Company is good for the country.”

That relatively unknown company may become the proud owner of GM’s Hummer unit, a brand that is synonymous with “gas guzzler.”

China seemed to be on a roll toward encouraging fuel efficiency. A new tax system places a higher fee on the purchase of cars with large engines. The Los Angeles Times says China’s surcharge on the Hummer is 40%.

And China has also been promoting the development of electric cars.

Of course, the sale of Hummer may save 3,000 manufacturing jobs in the U.S., because the Sichuan company does not plan to move the factories. This is a rare bit of good news during these times of U.S. auto industry layoffs.

But it’s not good news, environmentally speaking, for China, which will likely be the target of increased sales efforts by Hummer.

CNNMoney.com quoted the chief executive of the Sichuan company as saying the deal "will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the U.S." But there was no explanation as to how a Hummer could play such a role.

And an increase of any type of gas-guzzlers in China could create a detour on the nation’s road to more environmentally friendly vehicles.