Wasn't GM releasing name brands to be slimmer and then they do this? lol
Sometimes I wonder how bad GM REALLY was.


Read here.
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSSHA33290920090830

Already riding high on seven months in a row of record sales in China, GM is picking another partner there to further expand its portfolio, this time in the light commercial vehicle market.

GM China announced yesterday that it has signed an agreement to invest 2 billion yuan ($293 million) in Chinese light truck and van manufacturer FAW to build a new production facility in the northern Jilin province. The 50-50 joint-venture factory, already under construction in Changchun and expected to be completed by the end of next year, will have the capacity to produce up to 100,000 light commercial vehicles per year, more than doubling FAW's current capacity.

The vehicles will be branded as FAWs and sold primarily in China, though GM will have the option of exporting them under a GM brand to other world markets in the future. The joint venture also includes FAW's two existing plants in Changchun and Harbin, which together can build up to 90,000 vehicles per year.

FAW isn't the only place GM is looking to expand in China. Wale confirmed to reporters that the company is still interested in increasing its stake in its three-way joint venture with Wuling and SAIC, but wouldn't comment further. GM currently holds a 34% stake in the joint venture, which has produced China's best-selling vehicle, the Wuling Sunshine minivan.






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wtf are they doing ? GM isnt making much sense any more

Good, so our tax dollars bailed them out while they were closing domestic plants, now they're buying up overseas operations.
Anyone else find it ironic that a company now owned by the UAW and US Government is doing this?
This should give the American public tons of confidence in the current administration.

Quiklilcav wrote:Good, so our tax dollars bailed them out while they were closing domestic plants, now they're buying up overseas operations.
Anyone else find it ironic that a company now owned by the UAW and US Government is doing this?
This should give the American public tons of confidence in the current administration.

Well, yeah that and.....

We shouldn't buy from GM. We supported their broke asses, and instead of investing back in us they invest in China.
Americans should be outraged by this.



"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net

Anything to get away from the UAW. I don't blame them, either.


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Yeah I guess it is better to stay doing the majority of their business in a country that just got economically raped with people who are buying foreign cars instead.

Look at what they get for $293 million, a good shot at building and selling 100,000 vehicles a year in the largest and strongest emerging market in the world. For $293 million.

Now maybe I'm totally wrong, and I have no doubt that several of you will think so anyways, but don't they need to make money in order to pay money back?

I read some where about a month ago that China was thinking of shutting the doors on foreign automakers. Maybe this is GM trying to keep a foot in the door if that were to happen.




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C. Stormy Tan wrote:Anything to get away from the UAW. I don't blame them, either.

That's no excuse to abandon the country that saved their ass from ceasing to exist.
I have no love for those greedy UAW douches. But nobody said GM HAS to have the UAW build their cars in the U.S.. All they have to do is say no thank you to the next contract and let all those fat lazy cry babies bitch about it as the door hits them in the ass on the way out.
I highly doubt GM will have any trouble filling those jobs with non-union workers at like $30 and hour and the type of normal benefits most workers get at any other job in the U.S. And the only American workers out of work will be the lazy, uneducated, greedy UAW workers who deserve it anyway.

It's win-win for GM and they keep Americans working, and product built here, and can build products that can finally return profit for them.



"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net

KFLO wrote:Yeah I guess it is better to stay doing the majority of their business in a country that just got economically raped with people who are buying foreign cars instead.

Look at what they get for $293 million, a good shot at building and selling 100,000 vehicles a year in the largest and strongest emerging market in the world. For $293 million.

Now maybe I'm totally wrong, and I have no doubt that several of you will think so anyways, but don't they need to make money in order to pay money back?

Under normal circumstances, I would agree with you, and I wouldn't have a problem with them purchasing a company out of the US. The problem I have with this is that GM got taxpayer money that was supposed to be saving American jobs, but they kept closing plants in the US, and now they are buying plants overseas which they wouldn't have been able to do if we hadn't bailed them out.

As far as I know we bailed out GM NAO and not the global GM. One of GMs most profitable markets has been China. It would be stupid of them to not try to further their stake in a market that is providing an profit. Now if GM NAO is investing the money then there is a problem, but if GM China is doing the investing then they are not spending our government loan money.

GM did not need the loan from teh government. They could have gone through the restructure process with no government dabbling and still come out the same.

mitdr774 wrote:GM did not need the loan from teh government. They could have gone through the restructure process with no government dabbling and still come out the same.

We all said that. But GM had to go and cry to the senate and the president that they NEED the money because they would NEVER survive bankruptcy. They cried like little bitches that people would not buy cars from a company in Bankruptcy. Ignoring the fact that 100's of companies that survived restructuring like Untied airlines made it through and are still thriving. We were forced to bail them out and they STILL had to BK, and low and behold....they made it out in 1 month, still standing. Only now we'll never get our tax money back...you know....the bailout money they didn't need, and should not have received.

I feel we've been duped somewhere and i'd like to see an investigative committee look into GM and see if they were as broke as they said they were and if they really needed a bailout. Because IMHO they came out of that BK pretty fast considering they swore to God that if they filed for a BK it would be the death of GM. Well, it wasn't the death of GM and i think they should pay back every cent of the Bailout money for jumping the gun and essentially stealing tax money from schools, roads and other things that money could have gone to to improve Americans way of life.



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mitdr774 wrote:As far as I know we bailed out GM NAO and not the global GM. One of GMs most profitable markets has been China. It would be stupid of them to not try to further their stake in a market that is providing an profit. Now if GM NAO is investing the money then there is a problem, but if GM China is doing the investing then they are not spending our government loan money.

I know there are foreign divisions, but I was pretty sure that the main entity was still the one in the US, which we bailed out.

You must be right somewhere in there Quik. because i remember when GM was at the lowest point they were considering selling Vauxhall or Opel....it might have been both. If foreign GM brands are separate then GM wouldn't need to spin them off.



"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net

I love how much bad information is in this thread:

Getting rid of the UAW...yeah, only the lazy people get locked out. sure, so you mean EVERY UAW worker is lazy? You're wrong in that case. There's plenty of lazy ones, but I wouldn't even say it's the majority. The problem is the process that the union follows. Locking out the union is NOT as easy just locking the doors and moving on. Now your lines shut down, and they have to retrain staff nationwide, IN A HURRY, and hope production quality doesn't suffer. Meanwhile GM has to take a break from production, and they lose money. This is why you're not an executive, you don't see the whole picture.

We lost our bailout money wrong, they still have to pay that back. Look into the details of the bankruptcy before just spatting. You don't know diddly squat. Most bankruptcy's actually involve some sort of payback plan, not just a reset button. it depends on the nature of the bankruptcy. Why would the government agree to allow bankruptcy knowing they're debted? From a pure logic standpoint, your idea makes no sense.

Our money is going to China! yep, wrong again. they're separate businesses, and China is one of the strongest markets in the world. It makes PERFECT sense to build cars there and make money! That's why we do business! Make Money!


Some of you guys need to quit pretending you know ANYTHING about business, and maybe go take some classes and learn a thing or 6. From your guys' logic, I want NOTHING to do with any business you're running!

I have two things to say regarding your rant (and I partially agree on some of your post):

DroptopPaul wrote:Getting rid of the UAW...yeah, only the lazy people get locked out. sure, so you mean EVERY UAW worker is lazy? You're wrong in that case. There's plenty of lazy ones, but I wouldn't even say it's the majority. The problem is the process that the union follows. Locking out the union is NOT as easy just locking the doors and moving on. Now your lines shut down, and they have to retrain staff nationwide, IN A HURRY, and hope production quality doesn't suffer. Meanwhile GM has to take a break from production, and they lose money. This is why you're not an executive, you don't see the whole picture.

It is not a simple easy project of getting rid of the UAW, but the bottom line is that until this happens, GM will not be able to fix the problems of their manufacturing in the US. The UAW has become a monster that mostly serves it's leaders, while encouraging low productivity and high employment costs. As for every working being lazy, that's an obvious stretch of the truth. There have to be good workers to support the lazy ones, but the system in place rewards the lazy and unskilled with the same benefits and pay as the hard working and highly skilled. This has to be fixed, but because GM had a "controlled" bankruptcy, the union contract is still intact. A normal bankruptcy would have allowed the dissolving of the previous contract, so they would have been able to negotiate a new one. Until GM is free from the current contract they have, they will continue to lose money in production costs.

DroptopPaul wrote:Our money is going to China! yep, wrong again. they're separate businesses, and China is one of the strongest markets in the world. It makes PERFECT sense to build cars there and make money! That's why we do business! Make Money!

I will admit not having 100% of the information here, but I will say that GM China is not a fully separate entity. They are still a division of GM, which means the money is still tied together. The structure of each division may or may not allow the independent decisions and moves regarding new acquisitions, and the money may or may not come from the top. Until I see 100% confirmation that no money from the US headquarters went into this acquisition, I will be skeptical.

And as I stated above, I would normally have no problem with this, but if any money from the US went into this, I do have a problem with it, because the taxpayer money was loaned to GM to save American jobs. They should definitely be required to pay back all the taxpayer money before being allowed to invest anything out of the country that comes from that money.

Also, I do agree that there is nothing wrong with investing in a strong market. I have no problem with companies who outsource products. I just want to know that we are not subsidising it.

Agreed...UAW needs to go! but it's not as easy as just throwing out a contract and resuming production the next day is my only point. My other point was that the money isn't coming from the US. If you wish to remain skeptical, so be it. I have a lot of faith that none of our money is over there. Matter of beliefs at this point