Topic: Chinese may buy out GM, Chrysler

[PJungnitsch]

This would be an interesting shortcut for Chinese automaking.

SAIC, Dongfeng said to buy GM, Chrysler assets
By George Gao  From:Gasgoo.comNovember 18, 2008

Shanghai, November 18 (Gasgoo.com) Under the sway of the global financial crisis, the U.S. auto giants General Motors and Chrysler LLC are tottering on the brink of collapse. Japan's Toyota Motor was previously rumored to buy them out, but now Chinese carmakers SAIC and Dongfeng are also said to have plans to acquire the two U.S. auto companies, reported the 21st Century Business Herald today.

On November 15, a senior official of China's Ministry of Industry and Information Technology -- the state regulator of China's auto industry -- told reporters 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.

An industry analyst noted that the global financial crisis has forced Chinese manufacturers to retool and upgrade themselves in order to meet and survive the challenge. Many enterprises dependent on low-value-added manufacturing will be driven out of the new wave of competition by technically innovative and financially sound rivals. It would be much easier now for strong Chinese automakers to go global by acquiring some assets of their U.S. counterparts in times of crisis.

In the global acquiring process, Chinese automakers can start with buying out the OEM projects and Chinese ventures of some global carmakers such as GM and Chrysler, said an expert from Deloitte & Touche accounting firm. 

In the coming two years China is likely to see a few of its large Chinese automakers and other manufacturing enterprises set a precedent for achieving globalization by acquiring global companies, just like SAIC or Dongfeng's possible acquisition of troubled GM or Chrysler.

http://www.gasgoo.com/auto-news/1008425/SAIC-Dongfeng-said-to-buy-GM-Chrysler-assets.html

[tenpenny]

Now that would be interesting.

It certainly would be good for Ford, I think.

[Brigitte]

Interesting.

Now, if Dongfeng buys the General, will that make it DMC GMC?  Or will it be GM, Run by DMC ("Wok this way!") 

[Jameel]

That's a great idea. China has a lot of U.S. money they don't know what to do with and they want to get into the North American car market. Seems like a "no-brainer".

[tpl]

I suppose there would be a SUV called "The Long March"  which is what you'd have to do after it broke down.

Or a New Aztec called "Everything has its beauty but not everyone sees it."

"It does not matter how slowly you go so long as you do not stop."    might be apt as well and this
"He who will not economize will have to agonize." applies to incentives and discount I guess.

[safristi]

..Maybe 10 years or so back GM and Ford coulda ...shoulda bought and had the wherewithall to BUY HONDA,Toyota,Nissan & VW.....instead of making their own KARS..... ..............

    http:// online.wsj.com/article/SB122669746125629365.html

[echo7]

i wonder how would the chinese run a Unionized organization.. isnt it in china , anyone who opposes get shot ?

[carcrazy]

This would be difficult to watch; even more difficult than watching the two dying slowly. However, from the business point of view it’s totally possible. I don't think Cerberus cares too much where the money is coming from or what happens to the Chrysler after they sell it.

[gotak]

Doubt the US gov would do that. And I am not too sure any Chinese company would want to be hobble by such crazy legacy issues in either company. Daimler tired with Chrysler and they couldn't turn the company around. It's difficult to see how a Chinese car firm without international experience could.

[random006]

Interesting.
Now, if Dongfeng buys the General, will that make it DMC GMC?  Or will it be GM, Run by DMC ("Wok this way!") 

If they do this deal, would Dongfeng being getting a bad rap? 

[EV Dan]

Fang that dong! On the second thought its easier to get fanged over then to lose jobs and get sold anyway. Its interesting to know if the new owner will really have to keep the union and its legacy costs..

[DockMan]

"....have the capability and intention to buy some assets of the two crisis-plagued American automakers"

No one is silly enough to outright buy either of these companies in their current form.

[safristi]

 ...feng that wif knobs on....................   still waiting on that beer?

[Careener]

/puts on tin foil hat

Maybe this is just a planted story to push the bailout plan in the US.

//removes tin foil hat 

[Brigitte]

If they do this deal, would Dongfeng being getting a bad rap? 

Oh, come ON!  You can be WAY cheesier than that.   

[rrocket]

So if they were bought out by an "import" or asian company, would the unions finally STFU about imports and whatnot??

[Turbo Bob]

And they've done so well with Rover too...

http://www.edmunds.com/insideline/do/News/articleId=117126

That's the Rong Wei!?! 

[Mitlov]

So if they were bought out by an "import" or asian company, would the unions finally STFU about imports and whatnot??

I dunno, would certain members of this forum quit flaming "domestics"?

Anyway, I've got no problem with Chinese ownership of Chrysler and/or GM. It's a global marketplace and has been for years/decades.

[EV Dan]

"Anyway, I've got no problem with Chinese ownership of Chrysler and/or GM."
Sure ya don't, but will the workers have to put up with the cookies fortune? 

[barrie1]

I doubt it very much Rrocket as I know it would only get worse. That would be the final straw that breaks the Camels back as North America has lost too many jobs already to these Import Nations. Don't even attempt to tell me that their products are beter built as they are not and we all know it. Cheaper yes for sure but the high quality we expect is not always there at all. Have you seen the bumper stickers yet. "Have you still got a job,keep buying foreign".