Chinese Want To Buy the Big 3 Automakers

Jane Hamsher

Thursday, Nov 20, 2008

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.

We've kinda screwed ourselves over, here, huh?

What makes me , is that there are still those that don't get it!

The customers in the diner I work in can't stop talking about that news. They say now the government will definitely bail out the car makers because they don't want them sold to the China

What makes me sick is that so many americans are still staring at this through partisan glasses.

Bush/Obama, it doesn't matter, they are doing the work for the same groups of people.

This is not some accident and it's not a bad business model or business being ran badly, our industry is being killed on purpose.

let china buy them

after they buy them pull a china and nationalize them


i did not just say that did i

we have been called conspiracy theorist for long time war

A little corporate greed and customer greed with blinders on for a future need of economical, eco friendly vehicles, didn't help a whole lot either!

It's high time for people to start looking at the difference between Conspiracy theory and Conspiracy fact.

If the world leaders are meeting behind closed doors and armed guards, to slice the world up a little thinner amongst themselves, then by definition, people, those folks are conspiring.

You can go to prison for conspiracy to committ a crime. Stop thinking that the word Conspiracy is equal to kookery and start reading what the scumbags are writing, they count on Americans being fat,lazy and stupid and they flat write what they want down.
Stop letting these b@st@rds insult you and start learning true civic minded information.

you missed it

if china buys them and we nationalize them china loses the companies

many countries have invited foreign investment but then nationalized the invested companies

thus the investors lost their investment

Corporations been shipping a lot of jobs overseas for a long time anyway, so what's the difference if cars are made by the Chinese or Detroit workers?

If we give the Big 3 what they want, we're nationalizing the auto industry.

Will anything change?

Will they change their management practices, build smaller or more fuel efficient cars?

I don't think so.

They'll end up tanking anyway, so what's the difference if they tank now or later?

imo

the govt (taxpayer) should not pay out anyone

and as for the chinese buying any company that makes any milatary equip

noway in ........ you get the idea

and ship all the manufactering over sees and when we are truly attacked without the manufactoring capacity to build weapons

what is left

global nuclear war

just a thought

but hey what do i know

You know it is still on the books that we will not do any business with any communist country that holds it's people down.

Now cuba at our doorstep will not bow to our govt. and it is against the law for us to go thier without the govt. approval.

Now what about China?

Are they like Cuba?

Do they hold thier people down?

I never hear any talk about this from any national news what so ever... it is sad

I believe they should of called NAFTA.

NCTA

National Chinese Trade Agreement

Well...China already owns something like 50% of our National Debt.

Might as well let them just come on in and take over.