Chinese Automakers May Buy GM and Chrysler

[EV_Ares]

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. The paper cites a senior official of China’s Ministry of Industry and Information Technology– the state regulator of China’s auto industry– who dropped the hint that “the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers.” These hints are very often followed with quick action in the Middle Kingdom. The hints were dropped just a few days after the same Chinese government gave its auto makers the go-ahead to invest abroad. And why would they do that?

A take-over of a large overseas auto maker would fit perfectly into China’s plans. As reported before, China has realized that its export chances are slim without unfettered access to foreign technology. The brand cachet of Chinese cars abroad is, shall we say, challenged. The Chinese could easily export Made-in-China VWs, Toyotas, Buicks. If their joint venture partner would let them. The solution: Buy the joint venture partner. Especially, when he’s in deep trouble.

At current market valuations (GM is worth less than Mattel) the Chinese government can afford to buy GM with petty cash. Even a hundred billion $ would barely dent China’s more than $2t in currency reserves. For nobody in the world would buying GM and (while they are at it) Chrysler make more sense than for the Chinese. Overlap? What overlap? They would gain instant access to the world’s markets with accepted brands, and proven technology.

rest of the article @ link: http://www.thetruthaboutcars.com/breaking-news-chinese-may-buy-gm-and-chrysler/

[FreakinDJ]

1. Great - there goes the country down the tiolet

thanks Bush

[glowing]

2. hmm. bet they get their money now.

[Skwmom]

3. They can buy the plants and move them overseas.

Don't you love letting the free market take care of everything?

[Historic NY]

4. Great more Chinese crap, can't we keep some of our own.

[elocs]

6. That reminds me of when I was a kid and another way of saying "junk" was

"made in Japan".

[sellitman]

5. GM & Budweiser

This is only the start. Just wait until these foreign owned former US companies start exercising their weight on Capitol hill and our politicians start running this country for foreign nationals. We will be owned. Literally.

Thanks bushies & the DLC suck-ups!!

The United Socialist States Of Americhina

[FreakinDJ]

7. What do you mean "Wait"

They Bailed Out AIG first. A company formed and owned in China