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bladerunner

Banned Idiot
CHINESE COMPANS MIGHT ACQUIRE PARTS OF GM AND CHRYSLER : what do you guys think
By Bertel Schmitt
November 18, 2008 -

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China’s 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million.] The paper 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.

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.”

Deloitte & Touche sees a trend: “Chinese automakers can start with buying out the OEM projects and Chinese ventures of some global carmakers such as GM and Chrysler.”

The Chinese appear to have bigger plans than an accounting firm can imagine. 21st Century Business Herald acts and writes as if its already a done deal, and the beginning of more to come. “In the coming two years China is likely to see a few of its large Chinese automakers and other manufacturing enterprises set a precedent for achieving globalization by acquiring global companies, just like SAIC or Dongfeng’s possible acquisition of troubled GM or Chrysler.”

Just in case you missed it, the Shanghai Automotive Industry Corporation (SAIC) is China’s largest auto manufacturer. In 1984, the company entered a joint venture with Volkswagen. A decade later, SAIC entered a joint venture with General Motors. In 2007, SAIC bought the Nanjing Automobile Corporation, which had acquired British MG Rover in 2005.

Dongfeng Motor Corporation is a public company, although 70 percent of their shares are reported to be in government hands. They also are one of China’s Big Three. The company has numerous joint venture partners, such as Nissan, Peugeot-Citroen, Honda, and Kia. Dongfeng (which means “East Wind”) was founded at the behest of Mao Zedong himself in 1968.

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bladerunner

Banned Idiot
I realise the above article is probably unsubstantiated speculation, but was wondering if the poers that be were thinking along those lines, what sort of reaction would they get from Congress, given the past troubles they have had, when trying to acquire US Companies?
 

bd popeye

The Last Jedi
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I realise the above article is probably unsubstantiated speculation, but was wondering if the poers that be were thinking along those lines, what sort of reaction would they get from Congress, given the past troubles they have had, when trying to acquire US Companies?
I'm not sure but I think that if these Chinese automakers wanted to purchase these companies they'ed have to get the deal past the US government. GM, Chrysler & Ford have huge contracts with the US DoD on various programs.

Personally I don't think it would happen.
 

bladerunner

Banned Idiot
I understand that the Chinese hydrogen powered VW and the Chevy Equinox are going to debut at the LA Auto show tomorrow.Hope someone can post some pics of the cars, and comments on how the respective cars were received.
 

crobato

Colonel
VIP Professional
The Prisus we had at the rental agency about 5 years ago did not have Smartkey. I just rmember there were three diffrent things you had to do to start the car. many customers complained about this proceedure.

The shifter does indeed looks like a toy. But it is functional never the less. You just have to get use to it. All in all I really like the car.
There is a new Prius that is expected to come out in 2010. New styling, new interior, sportier and no longer like the Starship Enterprise. Leaked pictures.

Now if it only has solar panels on the top, that would be my perfect green car.
 

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sumdud

Senior Member
VIP Professional
Don't just look at horsepower, you still have the torque of the electric motor. At 199 ft-lb, the Prius may not be able to run on the motor alone for long, but at rest, the acceleration from that motor will amaze the Mustang next to you.

The Prius has a 2-piece windshield in the back crossed by a thick beam: has that hampered your driving?
And is it me, or is the new Prius' exterior pretty much the same, except for the nose?

When oil does run out, I am going to buy a diesel vehicle. You can run them on used oil from restaurants (pretty much for free and better off in the exhaust than at the dump.) (Are there any cultures that doesn't use oil in their cuisine?)
----
I was in China over the Summer and I saw existing-in-US car models built (and modified) in China (taking advantage of tariff laws). Some of them were SWEET! I'd rather buy them over US models or I would buy both.

Toyota Camry (Anyone have a 2001 Camry? Preferably with leather and/or moonroof.)
US model


PRC model


(Why aren't Camrys sold in Europe? That are good, solid, spacious and efficient transportation. What're they thinking?)

Honda Odyssey
US model


PRC model


If anyone asks me, I think that's one of the sexier minivans out there.

Honda Fit (Jazz elsewhere)
US model


PRC model (Newer years of sedan called City)


Here is a minivan that America(and Mitsubishi) could use here
The Galliant


PS. If Ford wants to survive, they need to start making their own parts and replace the Fusion with the Mondeo. (GM's new cars are very nice but GM and Chrysler have really ruined their name for too long to really survive.)
 

ahho

Junior Member
Actually China does have the US model of fit and their own version.
I did see the PRC version of odyssey in China but IMO it looks a bit weird seeing a the height of the minivan lowered, however for some reason i think mazda 5 doesn't look weird. One thing that i like about Chinese vehicles is that they try to put as much seat in as possible (eg. 7 seater SUV where north american ones is just starting to follow on luxurious ones).
 

sumdud

Senior Member
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Depends, there are no Fit sedans in the US and Fit hatchbacks in China are rare (Actually I don't remember how they look, if I saw one in Mainland. HK is a separate story but I think you know that HK cars are a separate category from Mainland cars.). The grill are different for sure. The PRC-Odyssey is lower but inside it felt more luxurious than the US counterpart. Seats, amenities within reach, had more class if you know what I mean, not a space associated with soccer mom and kids but more like friends going out for a drink.

I know what you are talking about for 7 seaters, but I haven't seen those for foreign brand models. The RAV4 doesn't come with 7 seats AFAIK in China. And really, those illegal-in-US 7 seaters have some horrible seats! They should widen the thing more and put some higher seats on there!

Anyone here who've seen cars in Hong Kong and think they are an eyesore?
 

bd popeye

The Last Jedi
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Toyota Camry (Anyone have a 2001 Camry? Preferably with leather and/or moonroof.)
I owned one about 5 years ago. Sweet ride. No leather or moonroof though. Probaly the very best auto I ever owned.

My goffy ex-wife traded it in on a 2001 Pontiac Gran Am. Jeez. Don't ask why:( Gran Am?? Not a bad car but not close to the Camry.
 

crobato

Colonel
VIP Professional
The Prius has a 2-piece windshield in the back crossed by a thick beam: has that hampered your driving?
And is it me, or is the new Prius' exterior pretty much the same, except for the nose?
I thought the look was evolutionary, not that I find the Prius ugly, rather it has a very pleasant looking exterior. No need for a big change. The robot grill probably has to change to something more consistent to Toyota's new corporate look. This look is now being spread to the other models like the Corolla, the upcoming Blade, the Yaris face lifts.

The new exterior looks more pleasant, compared to the Echo/Yaris style interior of putting everything in the center.

The glass panel on the rear certainly does not hamper the driving. I find the Prius in my test drives to have great all around visibility. It also has this minivan-crossover feel with the way the hood slopes to give you a good view of the road close.

There is now a new Honda Fit out now and it feels more crossover between microvan and economy car now. I checked out the interior of one, not to mention the test drive, and the new Fit has some of the most ingeniously conceived seating I have ever seen. The flexibility of the seats can be reason enough to buy this car.

When oil does run out, I am going to buy a diesel vehicle. You can run them on used oil from restaurants (pretty much for free and better off in the exhaust than at the dump.) (Are there any cultures that doesn't use oil in their cuisine?)
In many countries, diesel fuel is subsidized or have a lower cost which makes them the economical alternative in countries like Asia and Europe. But in the US, diesel fuel cost more than premium gasoline, which prevents them from becoming an alternative fuel strategy in the US. The problem with diesel is emissions mainly because diesel fuel has sulfur on them. This creates a kind of smell, like rotten eggs in their worst state, and create things like sulfuric acid in the air. Ironically, while diesels smell like crap, they actually produce lower greenhouse emissions than gasoline engines. In the US, government regulations force diesel fuel to have lower sulfur content any comparable diesel fuel in the rest of the world, creating the high cost. This forces the fuel to have a lower cetane rating, which makes them harder to start in cold weather.

The key to that is biodiesel, which can remove the sulfur content and yet has a better cetane rating than petrodiesel. And being renewable, biodisel can be as fundamental as a revolution in the industry like the way fossil oil replaced whale oil at the turn of the century.
 

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