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  1. #1
    Jeff
    Web Saab Story Golfhunter's Avatar
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    GM punished by China

    So far, G.M.'s biggest problem in China has been keeping up with demand.
    The four factories they co-habit with SAIC can only turn out so many vehicles.
    So they have been making plans for a brand new assembly plant that will cost over one billion dollars to erect and will be able to build an additional 300,000 cars.

    But that was against yesterday's reality.
    Traffic congestion and pollution was becoming a real problem in China's major cities. So the Government, which can do pretty much what it pleases, cut the number of new cars it would allow to be sold.
    Result, the growth in China's new car market was basically nil in 2011.
    And there's no sign that these quotas will be eased.

    Second issue.
    China is in the throws of selecting a whole new set of leaders. We shouldn't say "China" as much as "the Communist Party." These new leaders may have much different ideas about foreign companies, car ownership, allowable profits, and a host of other issues.
    If they figure that widespread new car ownership is not in the national interest, we have seen they have no qualms about shutting off the tap.
    If they decide that foreign car companies have no place in their future China, they can simply pass a law.
    They have already reversed their acceptance of foreign investment in local firms. And in China, if something isn't allowed, its pretty much forbidden.
    Finally, there's the imbroglio over the sale of Saab to China's Youngman.

    G.M. scotched that deal, fearing their technology originally given to Saab would be made freely available to the whole of China's car industry.
    This cannot win them many hearts in Beijing.
    And Youngman is still in the hunt.

    G.M. recently received approval to go ahead with the plant from the local Environmental Protection Bureau.
    But G.M. now says that a plan hasn't been finalized.
    Which is corporate-speak for "We're not going to spend a billion smackers if we're going to get kicked out."
    Though is a somewhat hackneyed phrase, doing business in China has many moving parts.
    No wonder G.M. is being cautious.

    source carnewser.com

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  2. #2
    Saab Addict
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    Ouch! Finally there seems to be some reason. Few will like the answer but when dealing with the despotic elements? This sure doesn't sound like the Tao of Pooh.

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    Semper ubi sububi in caput tuum

  3. #3
    Jay
    Saab Addict Hirsch's Avatar
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    Gotta love Communism!

    Decide that something isn't good for the future of China and simply ban it!

    A new set of leaders that doesn't like the capitalist-friendly laws of today could be bad in all kinds of ways.

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  4. #4
    Fly Aero Aero's Avatar
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    Quote Originally Posted by Golfhunter View Post
    Second issue.
    China is in the throws of selecting a whole new set of leaders. We shouldn't say "China" as much as "the Communist Party." These new leaders may have much different ideas about foreign companies, car ownership, allowable profits, and a host of other issues.
    If they figure that widespread new car ownership is not in the national interest, we have seen they have no qualms about shutting off the tap.
    If they decide that foreign car companies have no place in their future China, they can simply pass a law.
    They have already reversed their acceptance of foreign investment in local firms. And in China, if something isn't allowed, its pretty much forbidden.
    Finally, there's the imbroglio over the sale of Saab to China's Youngman.
    It´s not election time, really. The new leaders will be selected by the old ones (and very carefully at that), not by the people, so I very much doubt the new rulers will deviate from the present line much if at all.

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