It appears that the Chinese car makers SAIC and Dongfeng have plans to acquire the Big 3:
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.
All the Shock Doctrine fanatics cheering to drive the the Big 3 into bankruptcy "restructuring" (like Mitt Romney, who can kiss future hopes of electoral victory in Michigan goodbye) might want to think about the implications of this.
Of course the same legislators clamouring for bankruptcy could block the sale. (This assumes they have the fortitude to stare down the Chinese, who currently hold a whopping portion of US debt, and deny them something they really want). But in doing so, and at the same time refusing a bridge loan to the automakers, they are basically legislating the destruction of the Big 3. They will be forcing them to stiff all their creditors and stockholders and tear up their union contracts by refusing to let the "free market" they love to bang on about step in and assume the company's legitimate debts. Or were all those insufferable lectures about "personal responsibility" when the bankruptcy bill was going through just so much claptrap?
Because selling the company would be far preferable to the Big 3 and those who are dependent on them than Chapter 7. But long-term it would not be without peril for the US. As one FDL commener noted:
With no big three making cars what to stop Toyota and Honda from moving the plants to Mexico where costs are really low. Its only the threat of being shut out of the American market that keeps the Japanese building cars here. If we no longer have cars made in America by American companies we will have no choice but to buy their cars no matter where they are made.
I know long-term thinking isn't his forte. But as Richard Shelby is salivating at the prospect of yet another BMW SUV plant in his right-to-work state, it might be something for him to consider.
Read More:
Should the Government Bail Out the Big U.S. Three Automakers? HuffPost Bloggers Weigh In
Jane Hamsher blogs at firedoglake.com
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And then the gas prices last summer virtually put a halt to any spending..
Unless we can bring our manufactur
The banks sold our worthless paper to the world... the credit card companies are hurting because of defaults..
1) Michigan has raised taxes and spent too much money.
2) Unions became too powerful and demanded irrational concession
3) Management wimped out and agreed to irrational concession
4) Management stuck too long with auto designs that were outmoded.
None of the above will be solved by bailout money.
Right now Ford and GM are making autos that are on a par with anything made in the rest of the world. Chrysler's a bit behind in that regard. The problem is it will take customers a while to catch on.
First I had to learn Spanish to get along, now I guess it'll be an extension University course in Chinese.
So much for America. Unbelievab
Welcome to well, whatever the Chinese want.
thought enough of our fellow countryman to think it was worth $25, or $50 more for the product to keep
the production jobs, benefits, etc., here. A lot of that had been based on management chasing profit
at the expense of American workers and choosing profits over investment
The question is do we think the Chinese should have Detroit, and slowly dismantle what was once a
premiere country. We are riding the whirlwind of our own making to the bottom, and quickly becoming
a third world country. We have to realize we have been targeted by these countries by their government for their companies to produce and expand. Wake up America
3 million jobs.
Cannot be allowed.
They are as much American as any one born here is. We must help Americans in any way we can to help all of us in return. We must look out for the blue collar workers interests as we would our own interests. We must HELP EACH OTHER before we fall apart at the seams.
I implore congress to do the right thing and help their brothers and sisters. And get those head honcho company CEOs out of business. If they are living high off the hog, splurging and living like they are all Tiger Woods, then they need to look for a WORKER'S job, like the ones who they are putting on the street job hunting. We need men at the top of these businesses who care about the workers instead of the "fine way of living life personally
That's what I'm talking about. HELP EACH OTHER! No matter the cost!
They don't know how to deal with UAW...
A. All manufactur
B. All plants will employ only US workers.
Works for me.
In fact the cars they make there are nicer than the ones here.
it involved..
One problem a lot of people have (including myself) is that the Big 3 do not want golden parachute "strings" attached to the deal. They don't want executive bonuses to be cut (even though I was taught that you get bonuses for doing great work, not for running a company that's headed straight for bankruptcy