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Chinese Want To Buy the Big 3 Automakers
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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The big three are in trouble because american jobs are GONE! Because we have no MONEY. The average wage has dropped over the last seven years, the biggest employer is Wal-Mart. It is NOT because of union wages, and it is not because of poor quality or competition. It is because we have no manufacturing jobs in america anymore! We have no money with which to buy new cars.
And then the gas prices last summer virtually put a halt to any spending... the construction industry was greatly slowed down because of gas prices... The American consumer has no money. All the bailouts and talk of restructuring and who really gives a damn who buys the big three because we still will have no money.
Unless we can bring our manufacturing base back home we are lost... unless Wal-Mart starts paying cashiers thirty dollars an hour.
The banks sold our worthless paper to the world... the credit card companies are hurting because of defaults... the cars and televisions are not selling... WE HAVE NO MONEY AND NO JOBS.
The real problems:
1) Michigan has raised taxes and spent too much money.
2) Unions became too powerful and demanded irrational concessions.
3) Management wimped out and agreed to irrational concessions.
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.
American Corporations have been beating the drums for globalization for years and years. Guess what guys - globalization works both ways.
I posted about this yesterday and was pooh-poohed.
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. Unbelievable that people on this board can't get over their corporate hating ideology. Bush SOLD America. Communism has conquered America through disaster capitalism and union hating.
Welcome to well, whatever the Chinese want.
My, how the rhetoric has changed....yesterday the rhtoric was short of lynch mob for all concerned with the big 3. Those other Japanese, Korean automakers are skimming the market here with only their most expensive loaded up vehicles. Their profits go back to their countries, support their country, their infrstructure etc., and only when the idea of our companies being sold to the Chinese do we get an idea of the consequences. We have already sold our legacy/inheritance in a lot of different segments of our economy already, television, computers, appliances, etc.,just because we have not
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. They got the money etc., and the workers got the short end as always.
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
right to work means to be subservient regarding pay so the ceo's and management can pad their bank accounts whether or not ( usually not) they are competent in doing their jobs. the back bone of all industry are the workers and they should be rewarded appropriately comenserate to their performance, health of the company should be a factor but with the incompetence and greed in americas upper management that is a non starter at least for now.
NO! Absolutely, unequivocably NO. The Big 3 stay here. China can not have them too. Get rid of the overpaid CEOs (with their private jets) and cap CEO salaries at same as U.S.President with bonus equal to exceptional product only). Then put the auto workers back to work making green cars.
They would just cart the lot away to China leaving just front offices.
3 million jobs.
Cannot be allowed.
Can you see how helpful the manuals would be if they were written by Chinese? I bet all Walmarts would be listed on their GPS. What would the Corvette look like?
WHATEVER THE COST, THE GOVERNMENT SHOULD BAIL OUT THE BIG 3 BECAUSE THEY ARE OURS!
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". If they want American help, they need to show that they will do whatever is necessary to keep their employees happy, not their advertisers.
That's what I'm talking about. HELP EACH OTHER! No matter the cost!
Hank Paulson is truly out to teach us a lesson. You would think Americans are being punished for electing Obama. Go to room with economy!!
Paulson can't get kicked to the curb fast enough for me.I hope he HAS to look for a job real soon.
will they sell the cars at Wal-Mart?
Is this real? Are you kidding me?
They don't know how to deal with UAW...
You think China would ever need US workers to build automobiles when they have a billion of their own people to exploit for cheap labor?
Oh my God. No. China can not have The Big 3. They've taken everything else, but they can NOT have The Big 3!
I'd rather send all of McDonalds over there instead of one of the big 3. Americans need to lose some weight anyway and the Chinese could use a little more of it :). That's just a joke people. I have nothing critical to say about the Chinese. They are all part of our earth family.
The Chinese are smart enough to recognize that manufacturing is the foundation of a strong and growing economy. And it has been paying off for them with double-digit growth. Here in modern-day America, we have come to consider manufacturing too mundane and messy. We have "evolved" into a "post" industrial economy. An economy reliant on schemes and scams. And debt.. Oh, the debt. We have just begun to reap the harvest of this advanced thinking.
Let them buy them under two conditions.
A. All manufacturing and new plants are to be built on US soil with US labor.
B. All plants will employ only US workers.
Works for me.
GM already makes as many vehicles in China as any other auto company.
In fact the cars they make there are nicer than the ones here.
Seems like all cars manufactured abroad by GM and Ford are nicer than what they design for the U.S. market -- better designs, greater fuel efficiency, nicer fit and finish. I have never understood why the U.S. market is deprived of great small cars produced by the BIG 2 for overseas markets.
unfortunately... it is more sophisticated than that...
it involved... disseminating crucial information - well... rest my case.
No. Absolutely not. They have enough cars. These are our babies and we need to take care of our family ourselves.
Everyone that thinks we should save the Big 3 should start by buying their stock for Christmas gifts instead if Chinese-made toys. Everyone has been whining about Chinese toys, dog food, tainted milk, drugs, etc. Now you want them to buy the Big3 and sell us the cars? How many people have SUVs? Am I the only Obama supporter that drives a GMC truck and drinks Maxwell house? Does everyone else here really drive Prius' and sips lattes?
I have a Ford Taurus station wagon, and I love it. However, I don't know if my love for my car should translate into a huge government bail out of the Big 3 (ok...maybe Ford. But GM? Who pushed Hummer down our throat?)
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). The car manufacturers need to get rid of the executive bonus packages and show that the money will be put to very good use.
I know it should translate into a "bailout". If you love your car, you love the people who made your car. Think of them as your family and you've got your answer.
Nope, you aren't. Although I may be the only one here who proudly owns a gun.
I drive a Honda, refuse to shop at Wallmart, won't drink Starbucks, never used a credit card and am a proud girl with a gun!
I own Ford stock, drive a Taurus X and an F-150, was born in SC, own guns, and love country music. I am also a lit professor who just attended a lecture on the plight of migrant workers in Florida. We needn't stereotype people. I can be Southern athiest who supports human rights and votes Obama. I support American car makers by buying their products, and I support the bail-out. By the way, if you haven't driven a Ford Fusion or a Taurus lately, you might be surprised by the quality.
I am American born and buy American products and would like to see more American products made in America to rebuild our strength for our country. I'm not prejudice and like seeing products from all countries as long as they are safe. But we have given all of our good American products away and have lost our roots because of it. If it's not made in America, it is not American. Now that's all there is to that. I refuse to look our American cars. That's like losing American football to me. Horrific!
I refuse to loose our American cards.... (I meant).
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