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.
Hmmm… if this happens, would the bailout/loan still happen?
Thanks to McCullough.
@#5
“-and to put some more fire in their blood (and incentive), tell them they’ll be replaced by currently
out of work US chinese/asian citizensAsian children and political prisoners from forced labor camps if they bitch.”Corrected that.
Those Chinese will be pumping out Rincoln Continentals, Chevy Ruminas and Buick Resabres at a lightning speed.
re: http://www.freep.com/article/20081118/BUSINESS01/81118064/1014
Testimony to Congress 11/18/2008 – GM CEO Rick Wagoner, “I do not agree with those who say we are not doing enough to position GM for success. What exposes us to failure now is not our product lineup, or our business plan, or our long-term strategy.”
I could NOT believe that quote when I heard it on the news last night.
Goldangit, this guy is up in front of congress for a second day still looking for “free money”. I really feel for all the good people at GM, I’ve got several old chevy pickups on the farm and they are the best, but these guys at the top are CRAZY and I’m sad to say they will walk away with personal wealth and the stockholders and workers and the plain old customers like me will have nothing. What really makes me sad is GM built one of the best small cars I’ve ever owned GEO PRIZM which was a rebadged TOYOTA COROLLA in california. I believe they built it for at least a decade and wouldn’t you think GM could of LEARNED about building and designing a world class small car? No, I am afraid the US auto industry is like a once mighty oak that has been withering for decades this is it’s final death. It’s all over, A new firm may rise up to produce revolutionary vehicles (Tesla?) but the big three are toast. I’m very sad to see it’s demise because many lives will be disrupted, and like Bruce Springsteen says, “Now main streets whitewashed windows and vacant stores
Seems like there aint nobody wants to come down here no more
Theyre closing down the textile mill across the railroad tracks
Foreman says these jobs are going boys and they aint coming back to
Your hometown, your hometown, your hometown, your hometown.
#59 Mister Mustard said,
“I’d be interested to know what percentage of the average US business’s profits come from capital gains, and just how much of an effect the difference between the Chinese 10% CGT and the US 15% CGT makes in their decision to move to China (or to India, with its 10% – 40% CGT), rather than stay in the US. Not a whole heck of a lot, I’d imagine.”
tbh, i think the CGT not a major factor in the decision to move manufacturing out of the U.S.
i’d be interested in the weight it plays in outsourcing as well.
the huge factor that breaks the back of a fully US based company is union labor cost. the medical and pension costs are a major drain, -and the reason why GM & Ford have shut down plants in the US and reopened (and plan to open more) in mexico, china, canada and in ford’s case, -russia.
-#58: “made in china” quality has increased
10 fold since the 90’s… its up to the US customer to decide the quality of the product they produce.
i know this because one of the clients i work for (an appliance parts supplier/manufacture had to “up” quality output at the china factory 3 times before he was happy with the result. and able to get the gas valve AGA certified.
the major problem Chinese factories faces now (2001+ esp) is that because their people are enjoying/demanding a higher standard of living,
its not uncommon to see a *complete* turnover of factory workers every 6-7 months.
-they cut their teeth learning required skills at the factory, then in 6 to 7 months they leave with their newly learned skills for a high paying job elsewhere..
this results in wild QC (quality control) results at the beginning of the run, then just when they workers are honed in and producing high quality, they leave.. Germany amongst a few other countries
have since pulled producing products out of china because of this..
there is a good chance that this would not happen
here (if done right) -if china took over the Big 3..
-s
#62, -would those be from the all those empty FEMA
camps just waiting for dissidents and the like??
:p
#63
“Those Chinese will be pumping out Rincoln Continentals, Chevy Ruminas and Buick Resabres at a lightning speed.”
-rofl
-s
55,
What the fuck does that have to do with the problems at the “Big 3”? Where did affirmative action take over management and send jobs and IP overseas? WHere did affirmative action (I have never benefitted from it, but I always hear it as a scapegoat) misread tech trends and build shitty cars? How do liberals make auto executives take private jets to beg congress for money.
You’d better pull your head out of your ass soon, you may suffocate.
To those of you who have not worked for the big 3 A SMALL COMMENT TO YOU
I spent 37 years working for GM and retired
I was looking toward my pension that was coming for my services.
NOW I lost my health insurance and my retirement could be next if they lose the bail out.
Tell me what AIG did for our country besides help put us where we are.
Make them put their bail out money back instead of using it for boon dogles for their big boys.
as an side,
on top of all the hoopla..this *could* help
ensure that china continues invest in US Debt.
(buying 10 Year treasury notes -“T-Bills)
on september 25, china (CBRC) put all its banks on notice to stop all interbank currency lending to US based banks (but not to any other countries) in effort to minimize its exposure to the US market implosion.
ps..
-something is has scared the hell out of the market…the Dow closed today -427 at 7997
and the 10yr T-Bill percent rate dropped
over a point (to 3.36% [.-171%] -this indicates
a major surge in people buying T-bills, as a safe
haven while the market continues to fall..
the 30yr even moved down over point to
3.95 [-.168} -these are huge moves for one day..
(if they are real and not manipulated by The Fed)
wonder if has to do with all the fraud investigations starting to show up with citigroup/goldman sachs and jpmorgan
Charlie,
Thank you for your commitment and integrity. Seeing as you worked for GM longer than I have been breathing, I owe you the respect you deserve. I apologize for my callous comment.
Everyone’s talking about GM. Let’s talk Chrysler.
Chrysler is privately owned by Cerberus Capital Management, Limited Partnership.
Please read this funny – but right on target – article about Cerberus, and the whole auto industry bailout question.
http://www.huffingtonpost.com/chris-kelly/whats-good-for-cerberus-c_b_144759.html
Why ?
The Chinese aristocracy love them Buicks!
This would be a sad day for America. If it does happen, hopefully the Chinese will sink billions into it and then sell it back at a huge loss just like the Germans did with Chrysler. Doubtful, though.
I just wonder if they will pack up all the manufacturing hardware and ship it to Bejing. I guess I would have to start buying Fords. Ugh!
It feel like the country is falling apart. Communism may win after all. Depressing. It looks like the Chinese are about to eat our lunch.
I wonder if this is what the fall of the Roman Empire felt like?
And Charlie, I have loved every one of my GM cars and trucks over the decades. Thanks for all those great vehicles and great memories. I just hope it doesn’t end like this.
#71 Loved the Cerberus piece! This is the best gathering place on the web. I guess it’s all just nostalgia after all. Anyways, Thanks to all the good folks who gave us the chevy small block, turbohydramatic and the quadrajet 4bbl carb. “The internal combustion engine, accept no substitutes.” 😉