Comments on: TTAC Called It, GM Denies It: China Ready to Eat American Automakers’ Assets

By: Stein X Leikanger

Stein X Leikanger — Wed, 03 Dec 2008 18:54:04 +0000

@Bertel

Oh, absolutely. People would be shocked to know that even the top end “luxury” brands are up to the roof antenna with Made in China.

By: Bertel Schmitt

Bertel Schmitt — Wed, 03 Dec 2008 18:46:36 +0000

@Stein: What a lot of people don’t realize is that a lot of the parts going into cars made in the U.S. and Europe ALREADY ARE being made in China. Where did the parts industry go? To China.

By: Stein X Leikanger

Stein X Leikanger — Wed, 03 Dec 2008 17:36:25 +0000

Chinese Poison Pill.

What they are looking for, is a way to avoid any trade restrictions on their exports. By buying the brands (and they’re not just buying car companies), they shift their operation from being an exporter-only, to being a multinational operator with indigenous plants. Much harder to enforce restrictions against.

The offer will be irresistible – “we’ll use some of the money we have earned to buy your struggling industries.” And the plants will be turned into assembly farms for parts manufactured on the cheap in China.

As the saying goes, a capitalist will sell you the rope you hang him with.

And that GM denial is just disingenuous – if they’re using middlemen, they can claim to “not be in talks with the Chinese.”

By: rpol35

rpol35 — Wed, 03 Dec 2008 17:26:41 +0000

jgholt sort of beat me to the punch, as I initially thought “What a way to ditch that albatross known as Buick!” But then I realized if Buick is what’s making GM money overseas, why sell it as it generates much needed cash to support the $$$ abyss that N.A. operations has become.

The brands with no value need to go like Saab & Hummer. I still contend that Pontiac, Saturn and GMC have no market value as sale candidates. Why GM won’t stop the madness and exit GMC, I’ll never understand.

By: 210delray

210delray — Wed, 03 Dec 2008 17:24:04 +0000

Well, if they’re willing to take the plunge, why not? It would save us taxpayers the bailout money.

By: ferrarimanf355

ferrarimanf355 — Wed, 03 Dec 2008 16:50:34 +0000

As long as they keep their hands off of the Corvette, I’m okay with this.

By: dougjp

dougjp — Wed, 03 Dec 2008 16:35:51 +0000

If melting the server is the Plan,

Then I’d better post now,
while I can!

By: jgh

jgh — Wed, 03 Dec 2008 16:31:22 +0000

GM should see this as a golden opportunity to offload Buick quick and easy (and probably for some decent coin). Hell, even throw in Hummer to sweeten the deal – the Chinese should be able to offload some H2s to neighboring Russia.

By: autonut

autonut — Wed, 03 Dec 2008 16:31:01 +0000

They own GM assets directly (buying paper from GM) or indirectly buying our national debt.