CHENGDU, China, June 8 (Reuters) - Even in the southwest Chinese
home base of Sichuan Tengzhong Heavy Industrial Machinery,
residents are more familiar with the gas-guzzling Hummer brand that
it is looking to buy from bankrupt General Motors (GMGMQ.PK)
than with the heavy machinery maker itself.
Little-known Tengzhong, which makes special-use vehicles and
bridge and highway components, emerged last week as the surprise
buyer of Hummer -- a move that has delighted locals but raised
eyebrows elsewhere.
I think Hummer is a famous brand," said Zhang Youyi, an engineer
who wasn't initially sure if Tengzhong was even located in Chengdu,
the capital of Sichuan, a farming and industrial powerhouse.
"It would be good news for Chengdu," said Zhang, referring to
recent tragedies that have struck the province -- from a mystery
bus fire that killed 27, a landslide that buried over 80 people and
last year's earthquake that killed more than 80,000.
Others aren't so sure.
Besides flying in the face of Beijing's push to more fuel
efficient cars, Tengzhong's non-binding deal to buy a brand that
has become a metaphor for macho, gas-guzzling waste also needs to
deal with regulatory and financing issues. [ID:nPEK281493]
Tengzhong's management team is in the United States hammering
out a deal with GM, and could return to China this week, said a
source close to the talks.
"The purchase of a U.S. auto brand famous for being a
gas-guzzler obviously does not make sense," the China Daily wrote
in an editorial on Monday.
It matters little that Hummers get fewer than 8.5 kilometres to
the litre (20 mpg) and can cost more than $65,000 -- almost a
lifetime of work for the average urban Chinese worker. The Hummer
was never about being average.
"You don't see many Hummers in Chengdu," said Liu Shan, a
schoolteacher. "They're for rich people. Ordinary people like them
for wedding pictures," she said.
"LET THE WORLD FOLLOW US"
At the entrance to Tengzhong's factory, a series of grey
buildings, a slogan in large red characters proclaims, "Let the
World Follow Us".
But workers arriving for the early Monday shift declined to talk
to reporters, instead handing out slips of paper they'd been given
with a Hong Kong phone number of the company's public relations
firm.
"Nobody can talk about this," said a receptionist, referring all
inquiries to the company website's phone numbers.
The oversized Hummers are geared for off-road use, but have
become symbols of machismo for the bulging wallets of celebrities
such as sumo wrestling star Asashoryu, California Governor Arnold
Schwarzenegger and the newly rich in Russia.