It helps because the profits made in China (and globally) come back to the US (only to disappear in GM’s black hole here, sadly).

Microsoft, McDonalds and a huge number of other American comapnies do business globally and invest globally while bringing the profits home. That’s the entire point of doing business globally.

I think it’s misleading to say that profits of U.S. companies doing business overseas come “home” to the U.S. Profits go into the pockets of shareholders. Those shareholders can be Americans, but they are just as likely to be Europeans, Middle Easterners or Asians.

This is where the “domestic” brands’ “Buy American” argument comes apart. What makes GM “American” and Toyota “Japanese”, besides heritage and headquaters location? They both manufacture globally and they both have shareholders — owners — all over the planet. I don’t know the actual statistic but I wouldn’t be surprised if Americans own more Toyota shares than Japanese nationals do.

In this light it’s difficult to rationalize why GM, Ford and Chrysler have a better claim to taxpayer bailout money than would Toyota, BMW or Nissan. The latter three companies manufacture in the U.S. have a significant percentage of American shareholders, just like the so-called domestics.

This just points out the folly of doling out federal benefits to badly-managed companies on the basis of their headquarters locations. If taxpayer money can’t be used to prop up Toyota (which would be politically radioactive), then there isn’t a good argument for using it to prop up GM either.

Microsoft, McDonalds and a huge number of other American comapnies do business globally and invest globally while bringing the profits home. That’s the entire point of doing business globally. That’s why Toyota roosts here, to take our green back home and reinvest it there, here and elsewhere. It goes both ways and that’s how businesses profit.

That’s all fine, but these same “global” companies are asking the US taxpayer for a bailout. Can’t have it both ways. If you want a US bailout to save US jobs, that’s one thing. But a US bailout to support 2500+ Chinese jobs is crazy.

NO BAILOUTS!

But if you think about it, GM is offering voluntary separations to white collar workers all over the country, including Warren Tech Center. Will they hire people in China to do these jobs? I don’t know. But one thing is certain, this should tell us that they see China becoming a much more important market.

If this bothers you, then go buy a Malibu and maybe GM will be incented to keep more engineers here in the US. Just saying….go where the market is.

Didn’t think so. Go where the market is.

EDIT doesn’t like me again, said I didn’t have permission to edit my own comment.

This statement came from a guy who works for a company that said the US auto market would be strong again and the housing market would be on the up swing by 3rd quarter 2008. I would sure count on their predictions being right. I don’t think the Chinese market is going to have unprecedented growth until their economy is not so tied to selling us crap, since we sure can’t afford to buy it.

I think the problems are just in his head as in a lack of grey matter. Looks like a common problem for GM execs.