The government is likely to reject a local vehicle company's bid to acquire General Motors's Hummer unit, because the gas-guzzling vehicles conflict with China's energy conservation goals.

The National Development and Reform Commission is likely to say Sichuan Tengzhong Heavy Industrial Machinery Corp, a maker of construction machinery, lacks expertise to run Hummer, China National Radio reported.
Hummers, which roar along on oversize tires and can weigh up to five tons, are based on U.S. military vehicles that gained fame during the 1991 Gulf War. But its sales have been battered by soaring fuel prices.

Tengzhong, based in the southwestern city of Chengdu, emerged as Hummer's surprise buyer this month after GM sought court protection from its creditors. The companies said the sale required regulatory approval and refused to disclose the price.

Auto industry analysts questioned how Tengzhong, which makes construction vehicles such as cement mixers and tow trucks, could succeed with Hummer.
The Chinese government is trying to promote conservation and use of more fuel-efficient vehicles. It has cut sales taxes on cars with smaller engines and is encouraging automakers to develop electric and other alternative-energy vehicles.

By People's Daily Online