BEIJING, June 9 (RIA Novosti) - A domestic company's purchase of the GM's gas-guzzling Hummer brand goes against China's environmental policies, Xinhua agency said on Tuesday citing an official with the cabinet's Development Research Center.
China's Tengzhong, which produces heavy machinery, announced last week that it had signed a preliminary deal with the troubled U.S. car giant to buy the right to produce Hummer off-road vehicles.
"If the Chinese company is just trying to stir media hype, that is understandable; if it really takes this step to buy, relevant departments should be strict and cautious with the approval, or reject the application if necessary," the center deputy director Lu Zhongyuan said as quoted by the agency.
"Buying a fuel-hungry and high-emission brand is directly against the current trend of energy saving and emission reduction," the agency quoted Lu as saying.
"The entire society should form the concept of energy-saving and environmental protection, no matter producers, investors, or consumers," he added.
Tengzhong CEO Yang Yi said earlier the company would invest in the Hummer brand to improve its fuel efficiency.
The preliminary deal for the little-known Chinese company with no experience in the passenger-vehicle market has triggered doubts and criticism from analysts.
GM has submitted a bankruptcy application to a New York court. The White House said it would grant the carmaker an additional $30.1 billion for a 60% stake. Analysts say the sale of the Hummer brand is part of the corporation's versatile restructuring.
