By on December 16, 2008

For quite a while, Dongfeng, China’s third largest automaker, had been rumored to be interested in taking over GM. Now, Dongfeng has lost all interest in the deal, China’s Securities Daily reports via Gasgoo.

It’s very interesting what Xie Dashun, a publicity officer at Dongfeng has to say. Yes, there were talks. And no. Dongfeng doesn’t like what they saw, or what they were not told: “Even though Dongfeng has contacted GM, the results are not available yet. Personally I don’t think Dongfeng has the ability to save GM, a company that neither its CEO or the U.S. government is able to save.” Strong words from the usually very polite Chinese, and from a company that is mostly owned by the central government. Even Gasgoo can’t help themselves from mentioning that GM’s “problem is far beyond the money value.”

Gasgoo cites an industry analyst who said that “it’s still early to talk about the acquisition of GM by a Chinese auto company before the U.S. automaker files for bankruptcy. Almost no Chinese enterprise has the might to buy out the U.S. auto giant, and the cash flow of Dongfeng Motor is far from enough to buy an American company like GM.” Note the “before the U.S. automaker files for bankruptcy.”

It’s interesting that the publicity officer with the strong words didn’t say a single word about Volvo. Dongfeng was named as one of the parties interested in the brand. All of GM may be too big to swallow “before the U.S. automaker files for bankruptcy.” A buy of boutique Volvo at Chinese prices would be way in the realm of the possible.

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12 Comments on “Dongfeng To GM: You Are Beyond Salvage...”


  • avatar
    GS650G

    Why buy now, better to wait for the 50% off sale.

  • avatar
    minion444

    50% off! nahhh! Better to wait for The RED Tuesday Sales!

  • avatar
    dougjp

    Nobody buys a Company or any of its divisions that are in this bad shape unless its under bankruptcy. Or unless they are buying just assets and not a Company’s operation or division etc. The Chinese and anyone else crazy enough to want their stuff will simply wait for bankruptcy. That way contingent and/or yet unknown future costs can be wiped out.

  • avatar
    toxicroach

    Buy one Volvo Brand, get Daewoo for free!

  • avatar
    Airhen

    I would think that the UAW would be all over this one.

  • avatar
    Kevin

    Strong words from the usually very polite Chinese, and from a company that is mostly owned by the central government.

    Heh, so it’s official, the UAW is too socialistic for the Chinese government to swallow…

  • avatar

    Strong words from the usually very polite Chinese, and from a company that is mostly owned by the central government.———

    Lets stop pretending there is anything called “Free Market” Internationally cause the Chinese government, Japanese government and even Germans are going to do whatever they can to protect themselves while America’s STUPID IDIOT POLITICIANS are busy casting blame and making the CEO’s of the Big 3 look stupid.

    China’s government decides how many of our cars go into China. Meanwhile, our ridiculous trade deals allow Korea to import 700,000 cars while they get less than 10,000 of ours.

    Ask a Japanese citizen how easy it is to get an American CTS in Japan…then come to America and see how easy it is to get an Accord.

    GUESS WHAT. PROTECTIONISM IS THE ANSWER.

    Socialism – including national healthcare is part of the reason the Asian manufacturers are so far ahead of America and its backwards ideals.

    We need radical, decisive CHANGE. President Obama will bring that.

  • avatar
    26theone

    Oh my Flashpoint get your flamesuit on. Give a little credit to the fact that the US rebuilt Japan mfg after WWII.

  • avatar
    porschespeed

    “You Are Beyond Salvage” ???

    Oh no. They ARE salvage.

    Salvage value is what GM’s assets will be sold for.

  • avatar
    psarhjinian

    You Are Beyond Salvage

    …and your Kung-Fu is weak!

  • avatar
    radimus

    …while America’s STUPID IDIOT POLITICIANS are busy casting blame and making the CEO’s of the Big 3 look stupid.

    Seems to me the CEO’s did a fine job of making themselves look stupid all on their own.

  • avatar
    John Williams

    Ask a Japanese citizen how easy it is to get an American CTS in Japan…then come to America and see how easy it is to get an Accord.

    These days, the Accords are tailor-made for the U.S. market and built in the U.S. If you want your argument to stick, replace the US Accord with the closest Japanese-market equivalent, the Acura TSX.

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