Expert on challenges ahead Hummer-Tengzhong deal

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The controversial Tengzhong purchase of Hummer is again in spotlight. Does the deal mean GM will dump its burden, or that Tengzhong will achieve its global ambition? Will the little-known heavy machinery maker be able to save Hummer? Other questions arise, such as what difficulties will the acquisition face? And will it succeed? Here is some expert analysis.

Jia Xinguang, Auto Industry Analyst said "There are mainly two types of difficulties. Firstly, relevant government departments haven't expressed their attitudes toward the acquisition. The deal is still subject to their approval. Secondly, Tengzhong has no auto-related operation experience. And Hummer is a well-known global brand. How to run and manage it well is a challenge for Tengzhong. Tengzhong has to make itself aware of international operation principles as well as the overseas legal environment."