Where your bailout $ will go: Troubled GM says it is profitable in China, will continue to invest

[Hannah Bell]

http://news.yahoo.com/s/afp/20081112/ts_alt_afp/uschinaautofinancecompanygm_081112143110

"We are continuing our investment in China and actually we are very profitable in China," said Henry Wong, a Shanghai-based spokesman for the biggest US auto maker. He told AFP that various investment projects GM had committed itself to in the past were "all on target and on track." These included expansion projects for existing plants in the cities of Qingdao and Yantai, both in east China's Shandong province, he said. "We are not withdrawing or holding back any investment in China," he said.

He declined to comment on reports in the local media that it planned to increase its 34-percent stake in SAIC-GM-Wuling, a joint venture that produces commercial vehicles. "I will not speculate on where money will come from for future investment of speculative nature. Right now it's too early to talk about that," he said.

On Monday, GM chief executive Rick Wagoner said the US auto maker was in such dire financial straits that it needed to line up a federal aid package before president-elect Barack Obama took office in January. "This is an issue that needs to be addressed urgently," Wagoner told Automotive News, adding that now is the time to "overshoot, not undershoot" the level of assistance.

GM has said it needs cash reserves of between 11 and 14 billion dollars to cover the cost of its operations.

[Donnachaidh]

1. So if they have a PROFITABLE division WHY give them free money?

Let them use the profits from China to fix their problems HERE.

The car companies that have profitable ares do NOT need our help. Let's use our tax money to help US companies - the ones who provide jobs HERE.

F*CK GM.

[HereSince1628]

2. No pour-outs for GM, trickle out is bad enough

There needs to be a national excise tax for moving jobs overseas as this corporate decision burdens governments at all levels with brown-yards, empty store fronts and unemployment obligations. Internalizing the cost of that decision should be a priority.

Moreover the US needs a value-added tax similar to those in Europe. Consumers really are not seeing the price benefits of 40 cent per hour labor. When companies import at external costs, and sell at prices the goods would cost to produce in American they profit simply by the act of importation. That's got to end.

[sandnsea]

3. The investor class is seeing the benefits

And this economy is all about the "ownership society". I don't know when the bottom 50% will wake up and stop letting themselves be screwed over.

[HereSince1628]

4. I'm not sure that's true. I think the CEO class is seeing the benefits

Share prices of many American manufacturers of durable products have been falling steadily and many range from 6%-10% of what they were at the end of the 90's.

In the mean time CEO compensation has been increasing.

[sandnsea]

7. Investors with their money overseas

I should say. Although I think outside of the current banking crisis which has everybody in a panic, the investor class has done quite well with Chinese manufacturing.

[RC]

5. The key sentence is this:

On Monday, GM chief executive Rick Wagoner said the US auto maker was in such dire financial straits that it needed to line up a federal aid package before president-elect Barack Obama took office in January.

Gee. I wonder why? Not!

If they want to be an American company, then they need to invest in America. If they want to ship their jobs over seas, then they can't expect to be bailed out from their bad decisions that lead to the problems in the first place..

[fasttense]

6. So then let China bail GM out. n/t

[Dont_Bogart_the_Pretzel]

8. Just like China bailed out Wallmart.

[Hannah Bell]

9. kick