| China to buy GM and Chrysler? | |
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| Nov 20, 2008 05:49 |   |
 | Recent news articles including Chinese and Canadian news sources say that SAIC and Dong Feng have plans to acquire American car manufacturers GM and Chrysler. This would instantly give the Chinese companies a huge world market. What do you think? |
| Nov 20, 2008 13:56 | #1 |
| Better than my tax dollars bailing out the automakers, but I do not know if that's any kind of bargain for the Chinese. |
| Nov 20, 2008 16:20 | #2 |
| A few years ago, China tried to buy their way into the oil business with the purchase of Unocal. The shock and indignation of the American public was deafening, and forced the Chinese and Unocal negotiators to break off talks. I think we can expect much the same with the automakers; the American's would sooner 1) bail them out or 2) let them go under before seeing the Chinese buy them. |
| Nov 20, 2008 19:58 | #3 |
| How about this scenario....the U.S. auto makers get their $25 bil. + possibly another $25 bil. after whining and crying to Congress and then sell out to the Chinese auto mfgs. The fat cats take the money and run to an offshore bank account, the workers are left without jobs, pension funds and medical benefits are now possibly null and void and the taxpayers are stuck with the bill one more time. After all, our dear friend Mr. Henry Paulson told a few little lies to Congress in regards to the the mortgage bailout that was suppose to help Main Street instead of Wall Street. |
| Nov 20, 2008 20:51 | #4 |
| From conversations that I have had with locals, they appear to be very much into “branded goods” and will pay more than a Chinese branded product even though both are made in China. Chinese cars appear to be very well made and seem to be extremely good value. I looked at a number of models with a view to purchasing one. After much nagging from HID I finally settled on a Japanese model just to keep the peace. So I ended up spending about 70% more for virtually the same thing. Along with India, China has the larges untapped domestic market in the World. What they lack is brand recognition and market credibility. The know how is already there. A global marketing plan would give them, at a cheaper cost the same results as buying a US brand. (Which the Europeans in general think is crap) But they have money to burn and in some cases, no idea what to do with it. But as Garry has alluded to, it sounds like another scam about to happen. GM execs will walk away with millions, transferring their ill gotten gains off shore and workers who have given their labour in good faith, in some cases for years, will be left standing in line at the soup kitchen.. Once I built a railroad….now it's done. Buddy, can you spare a dime? Dodger. |
| Nov 20, 2008 21:24 | #5 |
| GUEST18210 | while chinese made cars build quality has improved i beg to differ that they are on par with their western counter parts. take for instance a particular geeley recently purchased by my cousin who lives in hunan 4 months out of the year. on my last visit i had the, errrr, pleasure of riding in this vehicle. it was fairly new, with less that 300km on the odometer, but the car reeked of chemicals he attributed to the new car smell. it made me quite nauseous rather quickly. this in addition to cherry's recent attempts to pass the us crash test tells me chinese companies have a long way to go. also, do you think these vehicles have emission controls? hahahaha hope you think the air is bad now, wait until after new years when 30% of cars are sold. |
| Nov 20, 2008 22:21 | #6 |
| <<The fat cats take the money and run to an offshore bank account, the workers are left without jobs, pension funds and medical benefits are now possibly null and void and the taxpayers are stuck with the bill one more time.>> Gary, It will less likely happen under the leadership of Obama who is inclined to protectionism and social security net. He could drift away from excessive free market theory. Job outsourcing directly threatens people's living standards. I hears a story from my friends: a russian guy works with a tech. co (probably RIM) and is allowed to work from home. During his stay home working, he travled back to russia and outsource (subcontract) his job and became a middleman. I am wondering if it can be categorized into national security issue, business ethics issue or something else. But the sad thing is those kinds of things are legitimized by excessive profit pursuit of bloody corp. |
| Nov 22, 2008 10:12 | #7 |
| Yes, in any case the money goes to the fat cats, your scenario sounds to hit the bullseye, Gary. I believe there have every now and then lowered salaries to keep American car industry alive. Thanks, pal, there is the gate. Please close it while you go out. "US brand. (Which the Europeans in general think is crap)" I am not the most of Europeans but I do think US brand is ...crap. Generally. Have had quite many US cars. Olds, Ford, Olds, Chevy... All crap, but I loved every and each of them. Carlos |
| Nov 22, 2008 19:57 | #8 |
| I doubt on the reliabilty of news sources from Yinduffy, but US auto industry should consider flexible salaries and working hours to avoid plants shut down and mass layoffs. Union leaders are fat cats and Union laws big nuts, which paralyzes US auto industry and makes it unable to tackle with the macroeconomic fluctuations. Most of my Chinese friends like US cars because US cars are strong and give a sense of safety although they are gas consuming. |
| Nov 24, 2008 03:48 | #9 |
| Haven't heard this news. But I think that this isn't gonna happen. US government won't allow this deal happen. GM and Chrysler are two man auto producers in US. The government won't let them go to other people's hands. Probably, US government will let those car makers merge with each other. |
| Nov 25, 2008 17:35 | #10 |
| I don't think its going to happen either. If anyone buys one of the car companies, they will have to assume its debt - which would include paying retired workers for another 15-20 years! Anyway, just do an internet search on the story. Its out there on several sites. No need to get personal and question my sources. Just discuss the issues. |
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