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.
“Um, have you driven a GM or Chrysler product lately? It may very well ruin their own auto industry!”
China is all about building cheap and affordable products. It’s not like they will be trying to steal BMW’s customers. They will take some so-so GM car that goes for 15k in the US and build the same so-so car in China for 7k. They will sell like hotcakes, especially in places like India.
I meant, sarcastically, that the Chinese could show the unions what a real workers paradise is like.
Welcome to the New Millennium!
“That’s what they want. This is orchestrated to push people over to the bailout column.”
That could well be. But we need to figure out if it’s an orchestrated fake story or an orchestrated real one. If it’s the latter, then we need to carefully consider our response and its implications.
Thanks. Wouldn’t that be sweet! UAW... meet the Mother Ship!
If airlines can file bankruptcy, why can’t auto companies do it?
Does Detroit like muscle? Tanks in Tiananmen Square.
Do unions despise secret ballots? So does the CPPRC.
Cue the torch singer pouting, "Someone to watch over me"--
But I don't foresee the reinstution of pensions.
I remember a H-P official grumbling they wanted him to train up an operation, make it turnkey, turn it over and get out.
Hey, dude, then we don't have to listen to your whining about thirteen hours on a plane.
Actually, the Lotus cars are now owned by a Malaysian or Singapore company and made in Great Britain, a country that has not produced many fine cars (RR excepted). So, Ownership doesn't mean much these days. Jaguar is now owned by Tata Motors of India. The best is yet to come from that label.
Oh great, and if we end up having to fight China in a war (like over Taiwan), I’m sure China will immediately start producing the Humvees currently produced by GM, and also tanks, and other military vehicles for us to use to fight against them. Sure sounds good to me. That’s right, have a Chinese company producing our military vehicles and wartime machinery.
And let’s just shrink our manufacturing base even further, so that we are even more dependent on outside sources for our industrial basics. Just like Rome did, which aided in its fall as an empire, when they outsourced much of their economic needs to outlying colonies. The fall of the American Empire, coming to a town near you soon.
As to what’s wrong with GM ending up in bankruptcy. Would you buy a car from a company in bankruptcy? Also, how would GM continue to operate while in bankruptcy when no bank would give them any loans, bridge loans or otherwise, to continue to keep the business going? They would go from Chapter 11 (reorganization) to Chapter 7 (dissolution of the business) in no time flat, due to lack of access to capital to keep the company viable while in bankruptcy.
The gov’t years ago lent money to Chrysler in the form of a loan, and the gov’t ended up making money off the deal and Chrysler paid them back completely. I don’t want to see our manufacturing base in this country become virtually nonexistent. Foreign countries are buying our country up, many on the money they are making from our unwillingness to produce more oil from our own resources, thus making us further dependent on others for another of our basic needs, gas. I am for whatever it takes to keep our American auto companies in business, as I don’t want our country to be further owned by outsiders by losing yet another industry to them.
The emerging economies are coming on strong in car manufacturing because they are FREE from the zany work rules of the 1930s and the CHICAGO THUGS who enforce the status quo.
I'll drive an Indian owned British assembled Jaguar any day. Or the Malaysian owned British built Lotus. Or, the German owned USA built BMW. All fine cars with responsible owners and NO FRIGGIN UNIONS IN THE USA.
Be patriotic, America. Drive NON UNION!
I'll bet it's got a few UAW types worried. Hehehe
Gotta get those Republicans thinking bailout don't ya know.
You are aware that China is a communist country, right?
Clinton GAVE our secrets to the Chicoms and Obama is going to do the same.
A Wall Street friend predicted this 6 months ago. He said that the automakers would be sold off—after that we’d be tenants in our own land.
The US is economically powerless. We produce little to nothing. Basic manufacturing and all....we don’t produce anything of substance.
Just do it after January 20th.
I would enjoy reminding my Obama voting, UAW friends that Obama sold their jobs to China.
You are aware that China is a communist country, right?
Actually, they don’t care if the cat is black or the cat is white, as long as it catches mice.
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