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Tengzhong deal won't affect Hummer sales network

Date:2009-08-19

China's Tengzhong will maintain Hummer's auto dealership network if it succeeds in purchasing the U.S. brand, amid growing sentiment that it may complete the controversial deal.

"There will be no change in Hummer's existing global sales network and the quality of its after sales services after the completion of the deal," a Tengzhong spokeswoman said on Tuesday.

The U.S. sport utility vehicle is sold in more than thirty countries in the world, including China.

Sichuan Tengzhong Heavy Industrial Machinery, a little-known Chinese machinery maker, raised eyebrows in June when it unveiled a tentative plan to take over Hummer from General Motors GM.UL.

Doubts about Tengzhong's lack of experience in the car industry had been swirling and the gas-guzzling nature of the U.S. SUV was also cited by state media as reasons for expected opposition from the Chinese government.

However, the opposing voices have quietened down in recent weeks after China's commerce ministry sounded a more positive note on the deal, saying Tengzhong's move was normal for a company seeking to take advantage of the global downturn.

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