Tengzhong loses Hummer

Chinese equipment manufacturer Sichuan Tengzhong has finally failed in its bid to buy Hummer, General Motors' sports utility vehicle brand. Although there has been talk of the company using an offshore structure to avoid regulatory interference, specialists say this idea is fundamentally flawed.

There was considerable scepticism in the market when the intended purchase was first made public in June 2009. The buyer has very limited experience in producing consumer vehicles and, in fact, specialises in heavy machinery equipment for the construction and energy industry.