Comments on: “SAIC And Dongfeng Intend To Buy GM.” Wu Ke Feng Gao

By: MBella

MBella — Thu, 20 Nov 2008 06:20:51 +0000

It was just talked about on CNBC, about 1:10AMK eastern time.

By: Bertel Schmitt

Bertel Schmitt — Wed, 19 Nov 2008 20:27:33 +0000

@John: http://www.ustreas.gov/tic/mfh.txt

By: John Horner

John Horner — Wed, 19 Nov 2008 15:38:45 +0000

If the feds elect to attempt a GM bailout, aren’t they going to do it with borrowed money … from China?

By: Dorri732

Dorri732 — Wed, 19 Nov 2008 12:46:53 +0000

A senior executive from a global bank confirmed the rumor. “Whether it is true we should wait and see,” he said.

So, he confirmed that there is a rumor?

That’s the only confirmation I can glean from that quote.

By: Dimwit

Dimwit — Wed, 19 Nov 2008 11:46:22 +0000

Won’t happen. Cynical me might suppose that GM planted that story to raise the hackles of The Hill to get the bailout moving.

By: IllinoisAutobahn

IllinoisAutobahn — Wed, 19 Nov 2008 11:31:55 +0000

RF, I laughed my @** off at the illustration, but you are asking for trouble, nay, demanding trouble with stuff like that. Oh well, as long as they let you get away with it, sail on, pirate!

By: tom

tom — Wed, 19 Nov 2008 10:11:58 +0000

Question: Won’t a bail-out increase the probability of a Chinese take over?

I mean GM costs less than two billion Dollars at the moment. Even if shares should triple in value after a bail-out, there’s also 15 Billion of new cash in there.

Sounds to me that no matter what they’ll do over in Detroit, the Chinese will step in any way.

C11/C7 means cheap assets for SAIC et al, a bail-out means an (at least temporally) liquid company for the Chinese.

With war pockets filled to the max, the Chinese will easily do this.

By: dadude53

dadude53 — Wed, 19 Nov 2008 10:05:39 +0000

I disagree.This is going to be good for the customer.For years GM and Chrysler had issues pairing their vehicle quality with the MSRP.Now there is a chance the MSRP will be paired with the actual quality. Imagine a RT Minivan for 10K? Now we are talking.Of course the vehicle is not coming from CANADA or the U.S for other instances anymore, but who cares?
Neither is your dishwasher, coffey maker, range etc.
Wal-Mart shoppers, attention! Happy days will be here soon again.
And GM does not even have to change their initials. It just would stand for Gung-ho Motors. A true industrial worker’s cooperative’s paradise.

By: HPE

HPE — Wed, 19 Nov 2008 09:21:20 +0000

It makes a certain amount of sense. Instead of investing in Treasury bonds they might as well divert a few billion towards hard assets. The R&D and technology will be useful too, though I imagine it would be fun to be a fly on the wall when they find out the Volt isn’t all it’s cracked up to be…

One of the most interesting aspects of all this, for mine, is psychological. The decades-long symbol of American industrial might falling to the Chinese? Toyota has spent years promoting itself as down-home Yankee, with mixed success. It’d be interesting to see how GM-Chrysler’s sales fared if this goes through. My suspicion is, not well – not that that this will trouble the Chinese unduly, I suspect.