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 don’t have anything against China buying things on the market if they have the money and someone here is looking for a buyer.
On the other hand, certainly automotive manufacturing is a strategic industry, if anything is. Unless our army is planning on buying Jeeps and tanks from China.
“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.”
But that’s the thing- it will probably be a Gordon Gecko-style takeover. They will steal our decades of automobile know-how and build the cars back in China. And then file bankruptcy anyway in all likelihood.
Body parts donors.
yeah but the chinese believe in capitalism
“Very interesting timing on this article”
Of course...BINGO!! Mind you, the ‘unions and democrats have no problem with China getting our military secrets or manufacturing key parts for our military machines. (eye roll)
A statement that just doesn't bring comfort.
Could you rephrase it stboz?
They will steal our decades of automobile know-how
what
I am also against the bailout but I would rather have a bailout than have China buy our auto industry. Either way, leaves a bad taste in my mouth !
Chinese government thugs against the UAW thugs. Good game...!
Well... there goes the Chinese auto industry!
“What would the Chinese do with unions?”
Can you spell execution?
The union bosses probably wouldn’t like it because they would have to furnish their own bullet.
“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.”
I disagree- I think it would be a bigger PR victory for China than landing a man on the moon. To see China buy the flagship manufacturing companies of the USA in a firesale is more than I think I could handle. It would be Exhibit A for the Decline of the USA.
But I’m hoping we can stop this outright- just like we stopped the Dubai ports deal. I’m not sure if China needs our government’s permission to do this or not.
Yeah, the Chinese might steal our internal combustion engine technology. Wonder what he's smoking....
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Um, have you driven a GM or Chrysler product lately? It may very well ruin their own auto industry!
yeah why come here when they can just go right next door to japan and get the good stuff?
But they won't buy them. No American would buy a Corvette or Viper made by a Chinese company. This is a scare tactic to pressure congress to give them money.
You may have something there, my friend, you may have something.
What would the Chinese do with unions?
Show them how real communists do it?
It would seem that the UAW leadership has been craving this relationship for decades! Oh, wait... useful idiots? What do you mean??
Yes, it served GM so well.
That’s what they want.
This is orchestrated to push people over to the bailout column.
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