Posted on 11/18/2008 7:55:07 PM PST by MittFan08
Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million.] The paper cites a senior official of China’s Ministry of Industry and Information Technology– the state regulator of China’s auto industry– who dropped the hint that “the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.” These hints are very often followed with quick action in the Middle Kingdom. The hints were dropped just a few days after the same Chinese government gave its auto makers the go-ahead to invest abroad. And why would they do that?
A take-over of a large overseas auto maker would fit perfectly into China’s plans. As reported before, China has realized that its export chances are slim without unfettered access to foreign technology. The brand cachet of Chinese cars abroad is, shall we say, challenged. The Chinese could easily export Made-in-China VWs, Toyotas, Buicks. If their joint venture partner would let them. The solution: Buy the joint venture partner. Especially, when he’s in deep trouble.
I think this is a great idea. Let the Chinese buy them. Chinese know how to deal with Unions.
Very interesting timing on this article. The prospects of a bailout aren’t going well and all of the sudden this appears.
What would the Chinese do with unions?
I got a laugh out of this comment to the article:
Usta Bee :
November 18th, 2008 at 1:06 pm
I can picture it now, a remake of The Dukes Of Hazzard with a Chinese flag on the roof of the new “General Mao” !. :)
Thanks union thugs.
The USA is bankrupt.
The fire-going-out-of-business stock sale is now.
Look for a huge rebound in the DIA as the USA is sold,lock stock and barrel.
If the Chinese want to buy Chrysler and burn their money up trying to make it run the way it is right now, they can be my guest. Even this doesn’t warrant giving GM or the UAW any of the taxpayers money either as grants or loans because they can repay neither.
I’m not sure how to write this in mandarin, but as far as I’m concerned, let the chinese in. Leave it to the Japs to duke it out with them.
I don’t like bail outs, but it might be the lesser of the evils.
Plus, what’s wrong with GM and Chrysler filing for bankruptcy?
Show them how real communists do it?
“Very interesting timing on this article. The prospects of a bailout aren’t going well and all of the sudden this appears.”
I agree. I was looking forward to the union contracts to be busted in bankruptcy. But I will say this: IF this is a legitimate threat and if it really going to happen, I might have to reconsider my position on the bailout. As much as I hate union workers, at least they are Americans.
They’d have the union members read Mao’s Little Red Book, and if that didn’t solve the problem, they’d send them to reeducation camps. /sarc
Has the UAW hit China yet?
If not it may be a winner for all.
If the UAW has hit China however, the communistic connotations because of it may stifle China's freedom to acquire GM and Chrysler. ; )
Nothing. It's what they should do. But won't.
Amen, and most of it happened under a Repub president. What in the hell has been going on under GW’s watch besides a horrible Dem Congress?
Exactly my first thought. I fully believe that’s exactly what’s going on. And they’ll try the same tactics on the next bailouts we oppose.
The Chinese would not touch the Big 3 with a ten foot pole.
The political issues and implications from the ownership of major US brands to dealing with the UAW are just too much for them to handle.
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