Automakers struggle to survive past mistakes

[baseline bum]

So basically we are bailing out companies that already have their bags packed. We're going to give them $150 Billion so they can employ Jose in Mexico and HaBeeb in India. Or worse, they take their production to China (who also just passed a bailout-stimulus package for their tanking economy).

Ford already has a plant in China. I would much rather let all three go under than give them any help whatsoever, as if they survive, they will all be in China in 20 years anyway. The current corporate culture mirrors the current American culture of being out for self and everyone else. Those jobs are already gone; it's just a matter of when.

[boutons_]

Please tell me again how the financial sector collapse and planetary economic contraction is all ACORN's fault, poor people's fault, F&F's fault?

[DarkReign]

Ford already has a plant in China. I would much rather let all three go under than give them any help whatsoever, as if they survive, they will all be in China in 20 years anyway. The current corporate culture mirrors the current American culture of being out for self and everyone else. Those jobs are already gone; it's just a matter of when.

Bang on analysis. Ford has more than one plant in China, actually. General Motors has a few if not more.

China is a strange place to produce anything though. That could be an entire thread unto itself.

Long and short of it, the Chinese government does not allow importation of cars. The government also chooses an operating partner for you.

Example: GM wants to open a plant in China. Government chooses the site and chooses an "operating partner" for GM. Lets say they chose ChangFeng. GM must build and support the plant at its cost. ChangFeng owns 50% of everything inside the plant and outside without ever having invested a dollar. ed up, yeah? It gets worse. Every dealership, every car loan, every car sold, every everything....ChangFeng gets 50% without ever having to actually do anything.

But GM is willing to do this because China has 9 million new drivers a year.

The government and ChangFeng are very plain about the relationship. They tell GM, we are allowing you inside our borders to learn from you, we plan on being your direct compe ors in time. They have a government official and a ChangFeng representative in every area of operation (paid for by GM). From the executive board room to the hourly worker seminars.

Oh, and the 50% of everything deal never stops. You start to lose money or feel that you cant sustain the operation any longer, we'll be more than happy to excercise our 50% stake and takeover for you.

Have a nice day.