Sichuan Auto Denies Plan To Buy GM's Hummer

Shanghai, February 17, 2009: (Gasgoo.com) Sichuan Auto Industry Group Co, a small automaker in southwestern China, has denied a media report that it is in talks to buy General Motors' Hummer brand, AP and Reuters said today, citing executives of the Chinese company.

Bloomberg News, citing three unnamed people it said were familiar with the matter, reported yesterday that Sichuan Auto was considering a $500 million bid for GM's Hummer line, known for its huge, rugged vehicles that come with poor fuel economy. A GM spokesman, Henry Wong, would not comment on the reports or name any potential bidders for the Hummer brand.

"It's a complete rumor. We have never had discussions with GM, nor are we interested in Hummer," said an executive of Sichuan Auto. "We have no energy to consider making bids for foreign companies; we're too busy running our own business," said an assistant to the general manager of the company.

Sichuan Auto, a privately-owned company based in Chengdu city, sells vehicles under the "Yema" or "Wild Horse" brand name. The tiny carmaker has about 1 billion yuan ($146.3 million) in assets and a staff of nearly 1,000, according to its website. It has an annual production capacity of 30,000 passenger cars and 5,000 buses.

GM, which has to convince the U.S. Congress of its viability in order to keep $13.4 billion in federal loans, has been seeking buyers for its Hummer SUV line, the Swedish brand Saab and a medium-duty truck business based in Flint, Michigan.

Hunan Changfeng Motor had shown initial interest in GM's Hummer brand, but backed off shortly in August 2008. More recently, mid-sized automaker Geely Auto denied rumors it was considering buying Ford Motor's Volvo unit.

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