GM is planning to wind down the Hummer brand after plans to sell it to China’s Sichuan Tengzhong Heavy Industrial Machinery failed. Tengzhong said it couldn’t get government regulatory approval for the deal in the required time.
We understand this regulatory problem partly relates to Chinese authority’s preference for smaller, more efficient vehicles.
As a reflection of Chinese oil strategy, it’s a telling sign that China’s concerns about oil security are strong enough that it wants to actively restrain the consumption growth rate. This, as we’ve written a few times, is a key feature of the argument that oil demand may actually peak in the not-too-distant future – and that China might be taking a stronger stance on CO2 emissions than it’s letting on.
China’s fears about imported oil (FT Energy Source)
Peak demand: going big? (FT Energy Source)
The Copenhagen positioning of China and India: Not always what it seems (FT Energy Source)