Once again, patents and intellectual property concerns appear to be getting in the way of a planned General Motors Co. divestiture.
The automaker's planned sale of its gas-guzzling Hummer unit to Sichuan Tengzhong Heavy Industrial Machinery Co.
has reportedly been delayed by China's Ministry of Commerce, with the ministry seeking details about whether Tengzhong is buying Hummer's patents or just the brand.
GM sources discounted the chances of the probe derailing the Hummer deal, explaining that the regulator found Tengzhong's application to be incomplete and is asking for additional information, but it is interesting to note that questions over patents and intellectual property are also central to the separate
GM auction of its Adem Opel GmbH European unit. GM has dragged its feet on a proposed sale to a consortium led by Magna International Inc. (NYSE:MGA) reportedly in part due to concerns that Opel technology would fall into the hands of Magna's Russian partners.
GM seemingly has no such concerns about the Hummer deal, saying that it is working with government officials in both the U.S. and China to sell them on the merits of the acquisition.
While that could mean GM is not transferring extensive IP to Tengzhong as part of the deal, it seems just as likely that GM is simply unfazed by the idea of Hummer and its 14 miles per gallon engine technology falling into foreign hands. With GM (and much of the world) focused on green technology, Hummer's products seem passé. Indeed, back in June when the deal was announced Hummer officials focused on the buyer's willingness to invest in new research and development to reshape the brand's offering toward more fuel efficient vehicles.
Which all goes to show that while Opel and its small car tech is the direction GM is headed, Hummer is more a reflection of the past the automaker is now trying to outrun. Look for GM to be as accommodating toward Hummer as it is cautious on Opel as it tries to conclude both auctions in the coming months. -
Lou Whiteman
Lou Whiteman is a senior writer covering the automotive, transportation and industrial sectors. Follow him on Twitter @louwhiteman
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Juergen Lasowski
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There will need to be some serious revamping in order to make a Hummer more fuel efficient. If this happens, the Hummers we know will cease to exist in favor of smaller, more economical vehicles.