[Pen-l] China to the Rescue..

[ken hanly <northsunm@xxxxxxxxx>]

 Given the resistance to a bailout in the US perhaps this is a good way for the US government to get around its problem by allowing the sale of GM and Chrysler to the Chinese. China has billions in US dollars that might as well be used to buy US giant lemons. We could look forward to new models: the Proletarian People's Car, a competitor for Volkswagen, the Red Flag, and of course the hybrid Maomobile.

Cheers, k hanly


http://www.agoracosmopolitan.com/home/Frontpage/2008/11/19/02867.html

Chinese Automakers may buy GM and Chrysler

by Bertel Schmitt 

   
    
Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, Chinaâs 21st Century Business Herald reports. LINK A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million]. This newspaper cites a senior official of Chinaâs Ministry of Industry and Information Technologyâ the state regulator of Chinaâs auto industryâ who dropped the hint that âthe 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.â 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 Chinaâs 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 heâs 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 Chinaâs 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 worldâs markets with accepted brands, and proven technology. 

The editors of 21st Century Business Herald, obviously 


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