The GM bankruptcy is going to speed things up very quickly. GM and the government have prepackaged this bankruptcy so it should be very quick approximately 60-90 days... the assets will be transferred to a new GM. There will be issues to be resolve in the old GM for approximately 2-3 years.
GM has apparently sold the Hummer brand to a Chinese manufacturer....Sichuan Tegzhog Heavy Industrial Machinery Co. Sichuan Tengzhog manufacturers road construction materials, plastics, and other industrial businesses. I have predicted for a while that the Chinese wanted to enter the U.S. market. I am surprised that one of the Chinese auto companies did not purchase Hummer...since Hummer already has a built in dealer network.
GM will manufacturer Hummers at the GM Shreveport, Louisiana plant thru 2010. It is estimated that the sale will save 3000 jobs temporarily between the plant, dealers and suppliers.
Summary:
I personally would not recommend that we sell U.S. assets to the Chinese. I am not a fan of the Chinese government economic practices or the business practices of many Chinese companies.
The Chinese have kept their currency artificially low so they can get more revenue and sales from the U. S. In the meantime, they have not purchased sufficient U.S. goods to have balanced trade.
The Chinese will keep production in the U.S. temporarily but then transfer the manufacturing to China. So, most of the U.S. jobs will be lost in 2-3 years. Hummer also supplies the military with the military Humvee! Are we now going to buy our military equipment from China?
Hi Pete .. unfortunately we've got ourselves in this situation (well may be not us ..) and so the west is paying the price .. who knows what the future holds - but we're right to question .. let's hope our technological and creativity keep us ahead of the pack.
ReplyDeleteThanks we'll see!!
Hilary Melton-Butcher
Positive Letters
Peter, did not think that the military part of Hummer was being sold. Can you check that out?
ReplyDeleteSuch a sad day that any of this has to be done at all. Thank you for the good post.
Dan and Deanna "Marketing Unscrambled"
Hi Hilary,
ReplyDeleteYes, we have involved ourselves in a serious financial mess. These things happen periodically...it also happened in the East in 1999. So, we will have to get ourselves out of this financial nightmare.
I agree with your point on technology and innovation. GM in this case did not have those two points lately...maybe the new GM will!
Thanks for your comment!
Pete Baca
The Car Enthusiast Online
Hi Dan & Deanna,
ReplyDeleteInformation is still sketchy about the deal but I will advise as I have more information!
The government in the past has done some really foolish things...they approved the sale of a company that makes lazer guided bombs to the Chinese. Then they were surprised when the Chinese moved production to China.
Thanks for your comments!
Pete Baca
The Car Enthusiast Online
Peter, thank you for that. The government sure does some dumb thing sometimes and we end up paying the price for that. Hope that this is not one of those dumb things.
ReplyDeleteDan and Deanna "Marketing Unscrambled"
Peter, we got this in an email today, thought you might like it.
ReplyDeleteHatch opens the way for big gains in Raser Tech
Senator's 100mpg Hummer gives us big profits in tiny stock
-------------------------------------------------------
WASHINGTON — Senator Orin Hatch drove up to the steps of the Capitol here in Washington DC in a Hummer that gets 100 miles to the gallon.
Take that, Al Gore.
The stunt gave Raser Technologies a zero-to–60 start in the Great Battery Race.
The tiny $3.88 stock, identified several weeks ago by Buried Treasure Under $10 as the surprise winner of D.C. billions ready to be handed out to innovators who could improve gas mileage, instantly popped 23%.
More importantly, the stunt served its purpose—to get Raser taken seriously on Wall Street.
Now Governor Arnold Schwarzenegger has booked a drive on around California's State Capitol in the Hummer plug-in.
It's all happening too late to save the Hummer brand, but not to late to maker Raser investors a mountain of money.
Click here to continue reading...
http://order.investorplace.com/?sid=JY2123&en=3741939
Dan and Deanna "Marketing Unscrambled"
Hi Dan & Deanna,
ReplyDeleteThank you for the article! I am glad that invesment and news media is realizing that Razor is such an innovative company! They are doing some very impressive work!
Normally, great companies are born during difficult times!
Thanks for the great report on Razor!
Pete Baca
The Car Enthusiast Online
Hi Dan & Deanna,
ReplyDeleteYour correct...I am of the opinion that government has had a lot to do with our economic problems. Hopefully, the new administration does better than the old one! Otherwise, we are in a world of hurt!
I do like what they have done overall with the auto industry. They have spent a ton of money to save the U.S. auto industry.
The auto industry helped us win WWII...it is critical that we have a vital and robust manufacturing industry. Thanks for your great comment!
Pete Baca
The Car Enthusiast Online
Pete,
ReplyDeleteIt is unfortunate that we have to sell american assets to foreign companies. It keeps americans from having the jobs that are needed especially now. Great info.
Dr. Bob Moulas
Hi Dr. Bob,
ReplyDeleteYour correct...I would be much happier if they were selling to a U.S. based company. It is better to keep the jobs in the U.S. rather than shipping them overseas.
The Chinese deal is not locked in stone yet...the Chinese government has to approve this transaction. Thanks for your comment!
Pete Baca
The Car Enthusiast Online