[lbo-talk] China to the Rescue..

[Sandy Harris]

On Fri, Nov 21, 2008 at 11:34 PM, ken hanly <northsunm at yahoo.com> wrote:
>  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.

You are out of date. VW is probably the largest brand here, with Peugeot and
Citroen not far behind. Europe recognised "Red China" before the US did and
European companies got here first.


> Chinese carmakers SAIC and Dongfeng have plans to acquire GM and
> Chrysler, ...

Shanghai GM is doing well. Quite a few vehicles in China with a Buick badge.


> A take-over of a large overseas auto maker would fit perfectly into China's
> plans. ...


> At current market valuations (GM is worth less than Mattel) the Chinese
> government can afford to buy GM with petty cash.

Yes

-- 
Sandy Harris,
Quanzhou, Fujian, China