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Old 08-30-2009, 01:05 PM   #1
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Default Government Motors in China...

http://news.yahoo.com/s/nm/20090830/bs_nm/us_gm_china

Should we as taxpayers be funding this??
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Old 08-30-2009, 01:35 PM   #2
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Yes, it should move ahead. These are trucks being built and sold in China. We have to get some money back out Government Motors.
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Old 08-30-2009, 02:08 PM   #3
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Quote:
Originally Posted by Fieldmouse View Post
Yes, it should move ahead. These are trucks being built and sold in China. We have to get some money back out Government Motors.
I see your point, but I'm sure they had this in the works long before the bailouts so why didn't they use their own money back then, not taxpayer money now?

Either way, they will end up failing in the long run and we will be out all that money...
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Old 08-30-2009, 04:59 PM   #4
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I agree, they will end up failing. We only need to look at the rat hole Britain through it's money down trying to save their auto industry.
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Old 08-31-2009, 04:18 AM   #5
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GM is already the largest "foreign" auto maker in China, you can bet that this deal was made long before they hit the skids here. We sometimes forget the scale of the companies we discuss, GM as a whole is doing fine, it's the North American unit that was failing. Ford and Daimler Chrysler had the same problem, and for the same reason, excessive labor costs.
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Old 08-31-2009, 04:55 AM   #6
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Some of the largesr bailed out banks are paying the money back with interest now. No reason why it can't work the same with government motors. If sales will be up it will have to happen there because the forcast for sales are dismal here in the states for the rest of the year.
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Old 08-31-2009, 07:22 AM   #7
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CE, the problem with that is that sales in China will be credited to the Asian division, not the North American division.

While the worldwide recession has probably reduced their sales in all markets somewhat, you can bet that the under performing NA unit did the worst due to their higher cost of operation. Many of us curse NAFTA, yet fail to realize that it's just part of a larger scheme to unite the NA markets into one huge global trading conglomerate in order to compete with the burgeoning European Union. The Pan American Highway was built decades ago for this reason, and NAFTA has siblings, CAFTA and SAFTA. All of this was concocted back before I was born, so it isn't anything new. We priced ourselves out of the labor market decades ago.
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