GM China’s sales are on a tear because of small mini buses made by SAIC-GM-Wuling. The venture, in which GM owns 34 percent, sold 87,925 of the small, rugged utes in July alone, up 90.7 percent from a year earlier. They are mostly being snapped up by farmers, helped by Beijing’s stimulus initiatives. Now, GM injects additional steroids: Exports of the Made in China vehicles.
The Wuling N200 series and N300 series vehicles will be shipped under the Chevrolet brand to emerging markets in South America, the Middle East and North Africa. They will be sold through GM’s distribution networks, Reuters reports.
GM is desperately trying to up their 34 percent share of SAIC-GM-Wuling.
Chinese media report that GM had secured an initial deal to take over Liuzhou Wuling Auto’s 15.9 percent stake for roughly 300 million yuan ($43.90 million). GM’s spokeswoman in China said she knew of no no agreement.
“GM is desperately trying to up their 34 percent share of SAIC-GM-Wuling.”
Using WHOSE money???????
We need GM to start doing some domestic exports…. how exporting about UAW workers?
Using the profits from China which are in Yuan which are not freely convertable to US $ and have to be used for something in China (parts, acquisitions, etc). And GM China is incredibly profitable.
The new motto at GM should be “engineer and design anywhere but in the USA”.
“engineer and design anywhere but in the USA”.
If you think about it, its not a bad idea (not for the US economy). I would have kept Europe (designs and technology are more transferrable accross the rest of the world) and dumped the US and then incorporate in China and come back as a new company in ten years, repurchase plants or build in the south, it would have taken years but with that plan I think they could have found outside DIP (Chinese have two trillion $ available). Americans have shown that they don’t care were a car comes from just as long as its a good car. Horribly anti-american yes, but in the end is probably better than what is going to happen.
Explain to me again why these guys say it’s our patriotic duty to support GM??
*sigh*
We already get them as Wulings… now also as Chevys?…
First Daewoos, now this.
Well…
Chinese cars haven’t been exactly admired (by car safety folks) for fine engineering. I think Chinese cars can’t be imported to the US because they will not pass (crash) safety tests. I suspect they are not exactly welcome in Europe either (for the same reasons).
What about the american workers, they will be unemployed. Yes maybe good for american economy for a short time.Only for the businessman Not for the worker , he gets nothing Later you get the hurt
Using the profits from China which are in Yuan which are not freely convertable to US $ and have to be used for something in China (parts, acquisitions, etc). And GM China is incredibly profitable.
Yes, the problem is that the US both has unusually high corporate tax by world standards, and is one of the few countries that taxes its corporations for business abroad (if the tax paid there is lower than US rate).
You don’t pay the tax until you bring the money home, so they have a strong incentive to keep the money out of the USA. The President has proposed (cosponsored when in the Senate the “Patriot Corporation of America Act”) taxing the profits as soon as they’re earned. The problem with that solution is that it would just force GM to sell off its profitable foreign divisions or just move the headquarters outside the US.