ECONOMICS & STRATEGY | China to buy major share of GM?


China has been angling to enter the U.S. auto industry for the last several years. Several Chinese truck plants are already being built in the USA, and Buick is one of the most popular upscale cars in China.

Several economy-priced Chinese cars are being designed for the U.S. market. What they really need is a distribution network and dealers.

The Chinese may get its chance when the U.S. Government sells off its 61% share of General Motors (GM) in November 2010.

Money remains tight. The Chinese are sitting on well over $1 trillion in cash.

Reports are now out that China may have its eyes on GM.

The Wall Street Journal reports: "China's biggest auto maker is considering buying a stake in General Motors Co. when the U.S. company again becomes publicly traded this fall … SAIC Motor Corp., which has built cars with GM in China since the 1990s, hasn't decided whether to participate in the initial public offering but has expressed interest in doing so…"

Is there a Chinese car in your future? What will "Made in America" mean in five years? If China buys more than 25% of GM will it even be an American company … not that it is an American company now.

Source: http://online.wsj.com/article/SB10001424052748703305004575503784053091088.html

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1 Comment

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One response to “ECONOMICS & STRATEGY | China to buy major share of GM?

  1. The “all-American macho” Dodge Ram-made in Korea. Ford Probe-Japan…perhaps 25-30% of all engines-made in Mexico (of American aluminum). Seems to me that a Toyota or Honda made here is as-American as a Buick made in China is Chinese.

    Wonder what management will say if China buys into GM and makes it work? How humiliating.

    Lenova bought IBM’s laptop biz, and there’s a Chinese-owned mini steel mill here, so wy not??

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