Comments on: MSM Smells Coffee, Insists: “Sell It To The Indians.”

By: Bertel Schmitt

Bertel Schmitt — Sun, 14 Dec 2008 04:22:03 +0000

@menno: That’s more like it. The Chinese are masters of the deal. Especially when the other side is in a hurry. Stringing along they don’t need to be taught. It’s the first thing you learn in China if you are willing to pay attention instead of paying too much: Never show you are an eager buyer or seller if you want a good price.

By: menno

menno — Sun, 14 Dec 2008 00:58:14 +0000

Since GM taught their partners at SAIC how to go about stealing a car company for pennies on the dollar, (see GM’s business dealings when buying Daewoo), and SAIC obviously learned very well how to go about doing same (see SAIC’s dealings when buying Rover), it seems crystal clear to me how this is going to play out.

SAIC will string GM along, ensure they know they are interested, make it impossible for GM to try to find another buyer, continue to string them along, continue to string them along, etc etc ad nauseum, then after GM takes a dirt nap, SAIC will swoop in and snag the properties they want for 1/4th or less of what they’d been “intending” to pay GM.

Yeah I know, I’m a cynic. (Know what I say? If you aren’t a cynic by age 25, you haven’t been paying attention).

By: Bertel Schmitt

Bertel Schmitt — Sat, 13 Dec 2008 15:25:18 +0000

As I said in the other thread about this, it just doesn’t make any sense for the Chinese to buy Saturn in a straight deal. They have nothing that is even remotely ready for the US market so they would be forced to continue reselling rebadged Opels.

Folks: The Chinese are in the rebadging and badging business. They have 20+ years of experience working with joint ventures, making cars identical to the western models. If the design data are thrown into the deal, they can make it. What they couldn’t do (contractually) is export the joint venture cars. With a deal like Saturn or Volvo, they could.

By: montgomery burns

montgomery burns — Sat, 13 Dec 2008 15:05:31 +0000

What I could see is waiting a bit longer for GM to be almost gone and then come in with a deal to buy Saturn, continue buying Opels as a stopgap and GM throws in an engineering center to develop a car for NA that would be built in China.

Opel Saturn Saab could make some sense but they would need of lifeline from somewhere for a few years to undo the damage done to them by GM.

By: John Horner

John Horner — Sat, 13 Dec 2008 14:32:41 +0000

Tata is already in the game, it is just that Jaguar and Land Rover buyers mostly don’t know it.

By: Dutchchris

Dutchchris — Sat, 13 Dec 2008 13:49:55 +0000

Maybe the Chinese scooping up some of the big 2.8’s brands is not such a bad idea. They are already way ahead of the west when it comes to modern alternative drivetrains:

http://www.gasgoo.com/auto-news/1008578/BYD-to-sell-F3DM-with-blue-label-on-Dec-15.html

Acquiring some household names for their products would be helpful to introduce them in Europe and America.

Let’s face it: for most of the western car industry adapting to the BEV business model is just not an option. They are just too dependent on the aftermarket part sales and the vast dealership networks that need the income from maintenance and repairs that are the hallmarks of the ICE businessmodel.

Unless the present carmageddon results in some fundamental changes in western automakers attitudes towards electric drivetrains I’m betting on China for the future of motoring.