Jump to content
BoiseRob

Chinese to Purchase Chrysler & GM

Recommended Posts

This would SUCK... :death:

Chinese Automakers May Buy GM and Chrysler

By Bertel Schmitt

November 18, 2008 - 34,737 views

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.

At current market valuations (GM is worth less than Mattel) the Chinese government can afford to buy GM with petty cash. Even a hundred billion $ would barely dent China’s more than $2t in currency reserves. For nobody in the world would buying GM and (while they are at it) Chrysler make more sense than for the Chinese. Overlap? What overlap? They would gain instant access to the world’s markets with accepted brands, and proven technology.

21st Century Business Herald, obviously with input from higher-up, writes that Chinese industry must change and upgrade. China wants their factories to change from low-value-added manufacturing to technically innovative and financially-sound high-value-add industries. Says the paper: “It would be much easier now for strong Chinese automakers to go global by acquiring some assets of their U.S. counterparts in times of crisis.â€

Deloitte & Touche sees a trend: “Chinese automakers can start with buying out the OEM projects and Chinese ventures of some global carmakers such as GM and Chrysler.â€

The Chinese appear to have bigger plans than an accounting firm can imagine. 21st Century Business Herald acts and writes as if its already a done deal, and the beginning of more to come. “In the coming two years China is likely to see a few of its large Chinese automakers and other manufacturing enterprises set a precedent for achieving globalization by acquiring global companies, just like SAIC or Dongfeng’s possible acquisition of troubled GM or Chrysler.â€

Just in case you missed it, the Shanghai Automotive Industry Corporation (SAIC) is China’s largest auto manufacturer. In 1984, the company entered a joint venture with Volkswagen. A decade later, SAIC entered a joint venture with General Motors. In 2007, SAIC bought the Nanjing Automobile Corporation, which had acquired British MG Rover in 2005.

Dongfeng Motor Corporation is a public company, although 70 percent of their shares are reported to be in government hands. They also are one of China’s Big Three. The company has numerous joint venture partners, such as Nissan, Peugeot-Citroen, Honda, and Kia. Dongfeng (which means “East Windâ€) was founded at the behest of Mao Zedong himself in 1968.

Share this post


Link to post
Share on other sites

We do live in a fair trade society, so businesses will be bought by those with the cash and ability to make changes for the better. Although it makes me a little weary, business is business. Companies that manage and prepare for the future well stay in business, those with bad practices go under. Unless your big enough, then you run a business poorly and the government bails you out. When was the last time you saw a small business get bailed out?

Share this post


Link to post
Share on other sites
Guest ShanesLB7
China basically owns the US anyhow.. Looks like my next truck will be Ford.

yep the chinese own alot of the us.. i don't know about a ford though!!!:wall:

Share this post


Link to post
Share on other sites

We are screwed... there goes the best two lines of trucks around...... t

If worse comes to worse i'll get a ford if those chinese dudes buy chrysler and gm...

Share this post


Link to post
Share on other sites

They probably will Steve, with a 50 billion price tag. I don't want to see China end up with them, but I really hate all the bail outs. Sometimes you have to fall to learn how to pick yourself up and walk again.

Share this post


Link to post
Share on other sites
But, what if there were a "National Emergency" and the Automakers had to switch to making Weapons of War?

somethin to worry bout............

brand loyalty bullshit is the least of our worries.

we as a country are boo-foo'ed i hate to tell ya.:wall:

stock up on ammo and stand up for right or learn to speak a chink/negro dialect:ow:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



  • Upcoming Events

    No upcoming events found
  • Recently Browsing

    No registered users viewing this page.

×