The news today that General Motors is investing 293 million dollars in Communist China to manufacture small cars should disturb all taxpayers who are not Left "wingnuts"!.
Especially since The federal government got a 60% ownership stake in GM WITH TAXPAYER DOLLARS in the TARP bail out!
The Canadian government got a 12.5% ownership stake in GM.
The Union (the new UAW VEBA) got a 17.5% ownership stake.
The bondholders (investors, retirees, hedge funds) got a 10% ownership stake.
Shareholders get virtually wiped out.
TAPR gave General Motors $10.4 billion, and GMAC got $5 billion because we could not allow it to go bankrupt! What the Obama "mob" doesn't tell you is that if the General Motors tax payer bail out succeeds the taxpayer will not be rewarded with a rebate, but if it eventually does go bankrupt. Economists who study the Auto Industry tell us that the tax payer Will be "on the Hook" for up to $62Billion!
The 50-50 joint venture, based in the northeast China city of Changchun in Jilin province, will make light-duty trucks and vans, GM said in a statement.
"For us in China, this is an important complement to the rest of our portfolio," Kevin Wale, president and managing director for GM's China operations, told reporters in a conference call.
"We are well established in passenger vehicles and mini commercial vehicles and we haven't had a presence in the truck segment. Adding a truck portfolio rounds that out."
The venture will use two existing FAW plants in Changchun and the city of Harbin, also in the northeast, with combined annual capacity of roughly 90,000 vehicles, Wale said.
GM is making Buick, Chevrolet and Cadillac models at its flagship China venture with SAIC Motor Corp. It also makes minivans, pickup trucks and the Spark compact car in a three-way tie-up with SAIC and Liuzhou Wuling Automobile.
SAIC-GM-Wuling sold 87,925 vehicles in July, up 90.7 percent from a year earlier, helped by Beijing's stimulus initiatives to support the industry, including subsidies for buyers in rural areas.
GM, which now holds 34 percent of SAIC-GM-Wuling, has been seeking to raise its stake in the venture.
Meanwhile the American worker is asked to sacrifice pay and benefits! If I was a UAW member I would feel cheated and very angry! As a taxpayer I am incensed that we are sending American dollars in huge bunches to a Communist Country. Money that was taken from hard working taxpayers in the name of saving an Industry too important to fail.
Perhaps this story in the Reuters web post today will make you realize that while U.S.economy struggles to break out of a recession. The GM money that is going to China will help them crawl out of their own recession.
"Stimulus spending by China's government and a surge in lending by its banks powered the economy to 7.1 percent annual growth in the first half after the global financial crisis slowed it to a crawl at the end of last year.(and GM's $293 million will help them!)
China"s Premier Chen said "Beijing should press Washington to guarantee the safety of Chinese investments in U.S. assets.
Premier Wen said earlier this year that China was worried about China's heavy exposure to the United States. Bankers assume about two-thirds of China's more than $2 trillion in reserves is parked in dollar assets, primarily U.S. government and other bonds".
And another issue we will have to deal with is the quest for hybrid cars will have a devastating effect on the rare minerals availability as this further Reuters quote illustrates.
"The Prius hybrid automobile is popular for its fuel efficiency, but its electric motor and battery guzzle rare earth metals, a little-known class of elements found in a wide range of gadgets and consumer goods.
That makes Toyota's market-leading gasoline-electric hybrid car and other similar vehicles vulnerable to a supply crunch predicted by experts as China, the world's dominant rare earths producer, limits exports while global demand swells.
Worldwide demand for rare earths, covering 15 entries on the periodic table of elements, is expected to exceed supply by some 40,000 tonnes annually in several years unless major new production sources are developed. One promising U.S. source is a rare earths mine slated to reopen in California by 2012.
Among the rare earths that would be most affected in a shortage is neodymium, the key component of an alloy used to make the high-power, lightweight magnets for electric motors of hybrid cars, such as the Prius, Honda Insight and Ford Focus, as well as in generators for wind turbines".
Just another example of how Chinese Communists will influence our lives and productivity
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