China near completing agreement to buy GM through IPO


“General Motors Co [GM.UL] is in the final stage of talks to sell equity to long-time Chinese partner SAIC Motor Corp Ltd in conjunction with its landmark initial public offering, two people familiar with the matter said.”

This coming from a report on Reuters that discusses the upcoming IPO for GM that has been authorized by the government and was even suggested by the Obama administration. From financialstability.gov:

  • “Access to all investors. We expect that potential investors will be sought across multiple geographies with a focus on North American investors, in line with what is typical in similar transactions.” (emphasis mine)

  • As a car guy(Fords for the win!) growing up, this hurts me tremendously. I loved the all-American competition between Ford and GM through the late ’80s and ’90s. It will NOT feel the same for me now. Beyond that though, this is just AWFUL! It is heartbreaking to see an American company with the storied history of GM be sold out to China. This is part two in a series of piecemealing of GM to come out this week. The other part was about the steering gear factory associated with GM that I already covered

    I read the article and understand that the final total hasn’t been set yet but this is the first time that they will have a stake in the manufacturer on its own soil. They’ve held partnerships with Chinese companies before, but never in this manner.

    “Any agreement between GM and SAIC would need Chinese government approval and could still fall apart, the people cautioned.”

    Uh, what happened to American approval? I mean, after all, we the citizens own 61% of GM currently. Don’t We The People have a say? Isn’t the government supposed to be of the people, by the people, for the people? And if so, doesn’t that mean that as owners of GM and part of the government, we should be able to voice our opinions? It feels like we have no control over this government any more.

    We still have the ability to defund Obamacare. We can hopefully even repeal it during the 112th Congressional session(although highly unlikely). We cannot, however, undo this deal once it goes through. There is no way for America to force China to sell back it’s stake in GM. We can’t say, “Whoopsies… um, we made a mistake here. Can we just kinda have it back now?” We will be forced to pay exorbitant sums to retain the lost stocks once we come to our senses.

    Effectively, the current administration is using a private company that it “seized” in a bailout measure as a way to pay off debt to China. This is of considerable concern because the government has already stated it’s intentions of taking control of private industries that are too large to fail and they haven’t even left a credible outline of what criteria they’ll use to takeover businesses. Under these auspices, is it so far off to think that this administration won’t undertake similar measures in the coming years when the economy that they are driving into the ground will offer up more potential bankruptcy candidates? Clearly, I have lost significant trust in this administration but this is an example of why.

    It is in this very topic that it becomes crystal clear to me that this administration is hell-bent on globalization at the very expense of American sovereignty and liberty. This is unequivocally the first major salvo in the war on American capitalism, American pride, American free market, and American independence. This administration is taking clear steps beyond socialism or statism with this maneuver. Intentionally and directly selling an American car manufacturer(or pieces of it) to a Communist country is nothing short of assimilating Communism within our borders.

    One if by land, two if by sea… How do we sound the alarm when it comes from our own President?

     

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