You have to wonder if a China GM buyout actually COULD happen
The story about the Chinese buying the rest of the GM debt was intended as a gag, but look at it again. What would retiring that debt do for Obama?
Look what it would do for the taxpayer -- restore billions to our budget.
The UAW and the Canadians would convert their near worthless IOUs into cash.
The Chinese would be able to get rid of a lot of dollars they are holding. They would also immediately have access to the US car market without years of legislative interference. How much is THAT worth?
The big questions would include what would this mean for national security and how long the UAW could play hardball with Chinese masters.
Whenever something makes too much sense NOT to do, for all parties concerned, maybe it's a matter of time before they actually DO it.
Wouldn't I love to see UAW working for Chinese bosses? After all the smack talking, that would be poetic justice for these guys to work for The Chinese and see how long they could hang on to their jobs. I would love to see that!
A Chinese company just bought PREH a large German parts maker with a good manufacturing base in North America. I would not be surprised if China starts buying up American manufacturing assets. They can control the distribution of new business awards and force more to China if necessary. Further, they need a better outlet for their surplus cash than the American debt. This of course would be a disaster for Obama.
<<I would not be surprised if China starts buying up American manufacturing assets.>>
Already happening MYTIME.
In 2009, Beijing West, a JV between The Tempo Group, Capital Iron and Steel, and the Beijing government bought the brake and suspension business from Delphi.
Beijing West also bought Nexteer (the former Saginaw Steering Division of Delphi) for $450 million 4 months ago. Nexteer was a fairly large organization with 22 manufacturing facilities, six engineering facilities and 14 customer support centers, which have 8,300 employees in North and South America, Europe and Asia.
Interestingly, one of the early bidders for Nexteer was Tom Gores, the Chairman and CEO of Platinum Equity. He is a Michigan native and the guy that just bought the Detroit Pistons.