Chinese Automakers May Buy GM and Chrysler?
With the U.S. auto industry in the midst of a crisis, Chinese media reports are saying that Chinese companies may buy up two giants, Chrysler and GM. From TheTruthAboutCars.com:
Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today… 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?
It is worth noting that this plan has not been mentioned widely (or at all) in the U.S. media reporting of the automakers’ current troubles. This article, from AP, talks about decreased sales in China as being one more nail in U.S. car makers’ coffins:
The big automakers’ ability to weather the crisis hinges on drawing jittery customers like Yang back into dealerships, especially in China.
The urgency is particularly acute for America’s big automakers — GM, Ford Motor Co. and Chrysler LLC — which have been battered by the U.S. economic meltdown and are lobbying the federal government for a $25 billion bailout that looks increasingly murky. GM has said it could run out of cash by year’s end without government aid.
POSTED COMMENTS: 7 Responses
Our goverment has sold us as americans for many years why not our cars too. When we started buying steel from Japan years ago, that was just the beginning of the United States being sold by our own manufacters.
And our goverment urged our greedy companies get have everything built outside the US, well I have only one thing to sayto my goverment, kiss my a–! Why pay taxes so we can give to the IDIOTS in Washington,DC!!!
it will be interesting to see how the crisis changes political minds on the hill. my first thought was of the proposed Unocal purchase in 05 that raised serious concerns among American politicians that eventually killed the deal with CNOOC. this time it seems even more serious: key American industry, brands that have defined American business, and Chinese state owned organs (this time banks).
Fine. Let the Chinese figure out how to deal with unfunded pensions and retiree health benefits.
This is not a good idea for the security interests of the USA. We need to regain the corporate concept that a company result of its activity is to make a profit or it needs to change including the possibility of closing its activity. America’s viability to remain a free country with opportunity for all to use their ability and creativity to achieve their own life goals cannot be delegated to others because what we ourselves do, does not make a profit. We are capable, just lost our path by not keeping profitability a company responsibility over self interests.
[...] pair of Chinese automakers may be eying to buy up Detroit, according to Chinese media reports (h/t China Digital Times). [The Truth About [...]
[...] China Digital Times » Chinese Automakers May Buy GM and Chrysler? With the U.S. auto industry in the midst of a crisis, Chinese media reports are saying that Chinese companies may buy up two giants, Chrysler and GM. [...]
I live five minutes from Canada. When the Chinese take over the US auto industry, I’m heading there.But it ain’t gonna happen. That’s why we have the 2nd Amendment.