On Thu, 4 Dec 2008 16:18:46 -0800 (PST), oldjag
wrote:
Well, I guess most folks don't really care to much if the US auto
companies fold, judging by the internet postings.
snip
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Just ran across this article
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LONDON, Dec. 6 (UPI) -- Vauxhall Motors, a British subsidiary of
General Motors (NYSE:GM), has held secret talks with government
officials as it seeks to save thousands of jobs, sources said.
The Times of London reported Saturday that the English automaker
approached Business Secretary Peter Mandelson for financial help
as its U.S. parent company faces potential collapse.
Follow-up meetings with Mandelson are believed to have also
involved representatives from other car manufacturers with
British plants, including Ford and Honda.
The newspaper said Vauxhall's move marks the first time a company
outside the financial services sector has sought government aid
since the global credit crisis began more than a year ago.
Although Vauxhall employs about 5,000 workers in Britain, but
there are estimates the company's collapse would affect 50,000
workers employed by part suppliers, car dealerships and local
businesses.
The Times said European Union rules normally preclude state aid
to car manufacturers, but EU officials are under pressure to
prevent the loss of jobs during the current recession.
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for complete article click on
http://www.upi.com/Business_News/200...8251228584895/
also see
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18 November 2008
German federal and state governments are working on a $2.6
billion (two billion euro) bailout package for ailing carmker
Opel, a subsidiary of General Motors Corporation of the US.
Opel sought government help after its management was left with no
cash to run the company.
Germany, which is confirmed to be in a recession, said it wants
to help Opal, General Motors' struggling German subsidiary, but
the aid will be limited to the German company and the government
wants to make sure it does not percolate over to Opel's US parent
or lead to demands for support from other companies.
snip
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for complete article see
http://www.domain-b.com/industry/Aut...1118_opel.html
and this little morale builder
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Chinese Automakers may buy GM and Chrysler
by Bertel Schmitt
Chinese carmakers SAIC and Dongfeng have plans to acquire GM and
Chrysler, China’s 21st Century Business Herald reports. 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 China’s Ministry of
Industry and Information Technology– the state regulator of
China’s auto industry– who dropped the hint that “the 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.” 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 China’s 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 he’s 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 China’s 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 world’s markets with accepted brands, and proven technology.
The editors of 21st Century Business Herald, obviously with input
from higher-up, writes that Chinese industry must change and
upgrade. China wants their factories to change from
low-value-added manufacturing to technically innovative and
financially-sound high-value-add industries. Says the paper: “It
would be much easier now for strong Chinese automakers to go
global by acquiring some assets of their U.S. counterparts in
times of crisis.”
snip
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for complete article click on
http://kencan7.blogspot.com/2008/11/...or-gm-and.html
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).