Rumor Mill: Are The Chinese Carmakers Quietly Planning To Buy GM and Chrysler?

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 in the 3 millions.

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?

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Agent009 - 11/18/2008 11:39:32 AM

+4 Boost

If they bought even one of them, it would mean instant access to a huge market and tremendous leverage.

bmwdrvr - 11/18/2008 12:20:12 PM

+2 Boost

they deserve to fail......your kidding right? GM and Ford's demise would mean the loss of hundreds of thousands jobs, not to mention the suppliers that are directly connected with these companies. The whole suv boom whether it made sense or not everyone, from toyota, to BMW were creating SUVS that sucked way to much fuel, why? because thats what consumers wanted. While they have made many mistakes through the years so has many other automakers, and GM for one has made a huge turnaround in product the past few years. I for one hope they survive, because our government can waste our tax money, on greedy finance companies that were doign predatory lending, and making bad decisions in the first place, from failing and our auto industry which is ahuge part of this country, is fighting with new technology, new product, and new ideas cant get any help.....

veyron1001 - 11/18/2008 5:01:42 PM

0 Boost

BMWDVR I bet the factories would be bought by Italian (Fiat)and German (VW)companies. The failing 3 just try to scare you so they can get loans. It wont be nearly as bad as they say.

WorldofLuxury - 11/19/2008 2:42:33 AM

+1 Boost

Think about the Buick Invicta that Chinese designers took part in...think about the BMWs that they build...and the Mercedes that you don't have to worry about intended product quality problems 'cause they're too far for us to just ship a few thousands of cars to repair.

Think about all the possibilities...Chinese ownership probably would have been the best choice even back in 2004. I truly encourage this...hopefully, there won't be any situations like the 100% tariffs that the US government had once imposed.

holmstar - 11/18/2008 11:40:51 AM

+2 Boost

"Furthermore GM of China is making a killing in China..."

Exactly! Why do you think these Chinese companies are interested?

NItePhire - 11/18/2008 12:02:49 PM

+1 Boost

I really dont think that the Governemnt or the UAW would allow this to happen. To a German/Japanese/Korean Company yes. To a lead paint toy making, killer baby milk selling group no.

NItePhire - 11/18/2008 12:03:18 PM

-1 Boost

I really dont think that the Governemnt or the UAW would allow this to happen. To a German/Japanese/Korean Company yes. To a lead paint toy making, killer baby milk selling group no.

NItePhire - 11/18/2008 12:04:50 PM

-1 Boost

I really dont think that the Governemnt or the UAW would allow this to happen. To a German/Japanese/Korean Company yes. To a lead paint toy making, killer baby milk selling group no.

holmstar - 11/18/2008 12:47:37 PM

+3 Boost

Dude. Click submit comment ONCE.

dumpsty - 11/18/2008 1:14:57 PM

+2 Boost

It would be interesting to see the political response upon hearing that a Chinese company was actively pursuing a merger or out-right purchase of either GM or Chrysler.

toyfan - 11/18/2008 2:33:00 PM

-1 Boost

Considering Mr Obama's socialistic tendencies, it could be appreciated by this new gov. . .

toyfan - 11/18/2008 2:36:29 PM

+1 Boost

However, a bailout might be the lessor of two evils.
It is a decision that is being made in blind faith that a bailout will save them but I'm not so sure it will.
If either of the 3 fall, it could take a lot of things with it.
So the lessor of two evils it has to be.

no1listensanyway - 11/18/2008 9:25:16 PM

0 Boost

Will NEVER happen.

woood - 11/18/2008 10:33:27 PM

+2 Boost

This will probably be the only way a Chinese can sell cars in the US's tough quality and safety regulations. Plus, this would mean they can ship all discounted/unsellable American cars to China for sale at good margins. Now that's business!