Skip to comments.GM To Form China Venture, Invest $293 Million [Stimulus $$s At Work!]
Posted on 08/30/2009 1:44:50 PM PDT by Steelfish
GM to form China venture, invest $293 million Partnership with FAW Group will produce light-duty trucks and vans
Aug 30, 2009
SHANGHAI - General Motors said on Sunday it has agreed to set up a light commercial vehicle production venture with major Chinese automaker FAW Group, with total investment of $293 million.
The 50-50 joint venture, based in the northeast China city of Changchun in Jilin province, will make light-duty trucks and vans, GM said in a statement.
"For us in China, this is an important complement to the rest of our portfolio," Kevin Wale, president and managing director for GM's China operations, told reporters in a conference call.
"We are well established in passenger vehicles and mini commercial vehicles and we haven't had a presence in the truck segment. Adding a truck portfolio rounds that out."
The venture will use two existing FAW plants in Changchun and the city of Harbin, also in the northeast, with combined annual capacity of roughly 90,000 vehicles, Wale said.
A greenfield plant, currently under construction in Harbin, will add 100,000 units of capacity by the end of next year, he said.
Vehicles made at the venture will carry the FAW brand and will focus on supplying the China market, but they could be exported under a GM brand through the Detroit automaker's global network in the future, Wale said.
(Excerpt) Read more at msnbc.msn.com ...
Unions learning what it means to eat their own dog food!
If China would buy goods like cars imported from the USA, they could have something to buy with their dollars, and help support Americans, who would then go out and buy Chinese junk at WalMart.
The unions, Obama and Red China. Yeah! That should work!
I was asked to sign a petition to save the Mansfield, Ohio plant and the link came from a progessive organization. Maybe I should send this link back.
So our tax money is being invested in a car mfg. plant in China? How does that help us exactly?
I think it has something to do with the unions outsourcing their work to cheap, Chinese slave labor and cashing in on it here. The unions seem to be modeling themselves after those “Big business scoundrels” who they demonized for so long.
I suppect this deal has been the works since Geithner went to China back in March!
Take that UAW!
Pray for the Tea Partie XPress
That’s only if we want to create a cycle where the money goes between both countries
the dems are only interested in draining the money from the US, not returning it
At least they are investing a more capitalistic country.
Excellent! You beat me to the punch.
Eating their own dog food, and they aren't satisfied with the store brand, they want the Ken-L-Ration. Hard to blame them. On the other hand it will badly splinter them. Couldn't happen to a nicer union.
China owns us now anyway, now they’re just trying to cash in.
If it earns a profit, money in fungible currency can be milked from it (it’s not like the olden days when you could only get funny money from China). Part should go back to Uncle Sam and part to the company.
I agree. Now the union members will finally get to see that the thugs who run the unions ARE NOT THEIR FRIENDS. We are definitely entering popcorn country.
Bummer has been too clever by half here. He’s actually got a crowd that he intended to be his servants for life, interested in raw capitalism. And it might even help the treasury a smidgen.
Cash in?????? They are cashing in alright. Notice how China is buying vast amounts of resources around the world. The are converting US Bonds for real assets. Before you know it they will be out from under our debt.
Many countries are getting smart. They are not selling the assets, they are selling the access to their assets. There is a BIG difference!
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