Business Alert: Is China buying GM..?

[TM7]

Hardly seems fair after us taxpayer bailouts....just more use and abuse of We the People by the money oligarchs....fyi....TM7

www.business.gather.com


Should the US sell GM to China?
by Dan Murphy
September 22, 2010 06:58 AM EDT
views: 1036
After spending billions of dollars to bail out General Motors Co. last year, the US government is eager to unload its 61% stake of the now profitable automaker. That unloading could happen as soon as November, when GM’s anticipated IPO is launched to the general public.

One company showing increased interest in the pending IPO is GM business partner, and Chinese company, SAIC Motor Corp. According to the Wall Street Journal, SAIC has been central to GM’s success in China and is expected to continue to play a major role in future success. In fact, GM’s sales in China rose 19% for the past year, ending in August. That’s contrary to a struggling US and European market.


The sticky issue is the potential political backlash caused by selling an American icon, which was rescued from failure by the American taxpayers, to a non-American company. When the general public is allowed to purchase stock, buying is not limited to domestic investors. Anyone from foreign companies to sovereign wealth funds can purchase shares.

The political backlash will be media driven and unwarranted, which is why the IPO will not be released until after the mid-term elections. GM was purchased by the Treasury when its stock price was basically worthless, it is now profitable and should be sold to the highest bidder.

Regardless of who purchases the shares, the Treasury will not unload all of its stock at once. In response to the Treasury’s one time sale, the NY Times quoted GM CEO, Dan Akerson as saying, “Not going to happen…I think that’s unrealistic.” How long it takes for the government to divest the rest of its holdings will, in part, be determined by GM’s success, Mr. Akerson said. The company has posted back-to-back profitable quarters this year, but he said longer term performance was critical to any stock sales by the government.

Photo provided by PicApp.

[Hooker]

Let them I quit buying their products long ago.
I still think we should have let them go belly up rather than reward their stupid business practices.

Pat

[billy_56081]

Going from ownership from one socialist government to another socialist government.

[Drilling Man]

  I'd be more worried of how China is buying up huge amounts of the big ranches out west!  They are on their way to OWNING us!  The ranches are failing, and China is buying them up by sealed bid!

  DM

[Swampman]

All the stuff owned by foreign countries in this country can be nationalized at the drop of a hat.  They own nothing.

[powderman]

Wonder what the unions would think about osama sending their jobs to china??? Reckon they'll still vote for osama??? POWDERMAN. 

[Pat/Rick]

Why not? it seems to fit into the plan the demicans and republicrats have to destroy the USA.

[wreckhog]

Does that mean that we might get Maggie Q doing the popups instead of that fugly woman in camo?

[SHOOTALL]

  I'd be more worried of how China is buying up huge amounts of the big ranches out west!  They are on their way to OWNING us!  The ranches are failing, and China is buying them up by sealed bid!

  DM

They are buying them from the Britts and Japs . We have never owned much of our own land .

[torpedoman]

All the stuff owned by foreign countries in this country can be nationalized at the drop of a hat.  They own nothing.

The government owns every bit of the property in the united states, even what you think you own. Just skip your property taxes and find out how true this statement is.

[Pat/Rick]

What torpedoman said. If you have a deed to your property take a look at it. I would wager that instead of owner you are listed as tennant. Least I have seen it before. may not be that way in your state.

Eminent domain. The gooberment has that over all. And they have the jack booted thugs to proove it.

[scootrd]

I was under the impression China already owned GM , are not most the parts made in china just like everything else we purchase
in the U.S. I think the last TV that was ever made in America was Curtis Mathis. I believe they ended up moving to Mexico before slipping into obscurity of the wallmart shelves .

[Drilling Man]

I was under the impression China already owned GM , are not most the parts made in china just like everything else we purchase
in the U.S.

  No the chinese don't own GM, and no, most of the parts are not made in china.

  DM

[scootrd]

I was under the impression China already owned GM , are not most the parts made in china just like everything else we purchase
in the U.S.

No the chinese don't own GM, and no, most of the parts are not made in china.

 DM

DM I was being Ironic / sarcastic.  Seems everything nowdays is made in XXX fill in the blank. getting harder and harder to find a made in the USA symbol on any product.

[SHOOTALL]

I was under the impression China already owned GM , are not most the parts made in china just like everything else we purchase
in the U.S.

  No the chinese don't own GM, and no, most of the parts are not made in china.

  DM


Mexico and Canada for the parts

[Drilling Man]

Mexico and Canada for the parts

  Yes, and depending on the model, "some" do come from China and also Japan.  In "most" models, the biggest % of the parts still are made here in the USA, just like with Ford and Dodge.

  DM

[SHOOTALL]

Its where the profit goes that really counts 

[BBF]

I can only write that I have a GM made in Shreveport. Anytime I look at electrical OEM stuff on the truck, it is made in China.

[jimster]

Tax payers in this country picked up the tab on over 50 billion or so...government used that to buy a chunk. People are bragging about GM paying back 8 billion, they got over 60 billion, pretty good deal for GM to stay in business, and a darn good way to shore up some votes from people who work there and would like to stay working.   

China can have all of what's left...won't be buying anything from government motors, or china/government motors anyway.

[BBF]

Neither will I, now the question is what is my alternative.