General Motors became China Motors
Q Is General Motors become China Motors using taxpayer money.
A No restructured GM is still based in Detroit and is still one-third owned by U S government but it sells nearly as many cars in China as in the U S and continued expanding operations there.
Even if it was half true, he lit a fire under you The problem is, it is true.
YES, YOUR MONEY TAX WORK, THANKS TO OBAMA ADMINISTRATION.
Several readers asked about the allegations in a viral video which criticizes the expansion of GM's China operations The video has received over half a million views on YouTube since it was released we May 4 the narrator, a man who gives his name as Vince Wade application Did we bail out GM so he can become a Chinese company.
GM is still an American multinational automotive company based, incorporated in Delaware and headquartered in Detroit In fact, according to the Bureau of the Congress budget, about 33 percent of GM shares is still owned by the US Treasury due a taxpayer- assisted bankruptcy and downsizing in 2009.
But the company sells cars in more than 120 countries and accounted for nearly 12 percent of all sales of cars and trucks worldwide last year November 9 percent, according to the annual GM is also Although China is now the largest market for car sales total land in car sales in China surpassed those in the United States in 2009, China has retained the lead in 2011 and that the lead is expected to grow to to come up.
So like it or not, were established in this large and growing market, and GM has been particularly successful clearly the narrator of the video doesn t like automakers the world there.
His video application, was the rescue of a mistake and he goes on to quote an account criticizing the Cadillac GM for currying favor with supposedly the underworld mob that runs China.
We won t offer opinions whether GM or other companies should do business in China, or other controversial issues on which the narrator takes a stand Our job is to examine the facts.
Overall, the video gives a one-sided image and on some points, he deceives We offer you a more complete and accurate picture, so that readers can decide for themselves how they feel about GM relations in China.
Narrator Wade says that GM has been reducing its U O operations, while s aggressive expansion and investment in China, but the fact is GM is developing in both places.
It is true that GM dropped much of its old U S shedding brands and operations dealers and many workers when it went through bankruptcy in 2009. The alternative was to go out of business entirely.
But since then, the new GM has expanded sales and operations For example, he announced in January that it is building a new 200 million stamping plant in Arlington, Texas and declares Since June 2009, company announced more than 6 9 billion investment to modernize or expand operations in 12 states, the creation or maintenance of over 17,600 jobs.
It is true that GM has also been expanding in China, but that was true long before the bailout Old GM one that went bankrupt was the largest overseas automaker in China in 2008 battling for supremacy there with Volkswagen.
The new GM has continued that success overseas It sold a record 231.183 vehicles in China in May, up 21 percent a year earlier, for example, which compares with 245.256 vehicles sold in the US up 11 percent a year earlier and the highest in 33 months.
The video is as deceptive as the cost of supporting taxpayer cites a figure of 80 billion, which actually covers for GM and Chrysler advanced disbursement of the government, as the narrator mentions in passing But the net cost of the entire plan rescue is currently estimated to end up being $ 19 billion by the Office of congressional budget 22 billion from the US Treasury.
Most of these 80 billion has been recovered by the interest payments, loan repayments and the sale of shares owned by the state and of course, part of that is attributable to bail out Chrysler.
Taxpayers still own about 33 percent of GM stock, according to CBO other calculations put the total nearly 32 percent Anyway, the final cost of the bailout depends largely on the fact that the price of GM stock rises or decreases between now and when the government decides to sell its shares.
So better GM, unless US taxpayers will be hurt and a key part of GM's overall business strategy is selling and manufacturing cars in China and GM CEO Rick Wagoner said in 2008 the carmaker that gets the right China will the future leader of the industry.
Much of the video is devoted to showing in February 2011 President GM and Chief Executive Daniel F Akerson towards explaining the overseas operations of GM reporters in Shanghai Akerson noted that nearly seven out of ten of our vehicles were made outside the uS and we have 11 joint ventures with Chinese companies owned narrated later described as partnerships with the autocratic, anti-democracy, the Chinese Communist government.
Akerson goes on to say, we're involved in vehicle manufacturing, sales, distribution, technical design and other businesses related to the automobile, he also said GM operates 11 assembly plants and four plants of the group powerplant in eight cities in China.
This may seem surprising to some viewers, but the fact is that the construction and sale of cars outside the country of origin is the norm for multinational car companies today Japanese and German companies have numerous manufacturing facilities in U S for example.
In fact, the first 10 cars made in America according to the users include three made by Toyota and both made by Honda and three made by GM, Ford and Jeep, a division of Chrysler, which is still the United States, but mostly based belonging to the Italian car firm Fiat the single most American car manufactured and sold US today is the Toyota Avalon 2012 with 85 percent parts direction domestic content be made to States States or Canada, according to notes published by the National Highway Traffic Safety administration Two GM vans are tied for second, with 82 percent domestic content Toyota Matrix has 95 percent domestic content, more than any other vehicle sold in the US but is assembled in Canada.
The spread of GM facilities worldwide Besides its plants in the United States and China, it is the third largest automaker in Korea It manufactures cars in Brazil owns the Vauxhall brand in Britain since 1925 and still owns the Opel brand in difficulty, made in Germany Poland and Great Britain, to name a partial list.
Some of the more than nine-minute video is dedicated to skin Cadillac for its sponsorship of what the narrator describes as a propaganda film to celebrate the anniversary of the founding of the Chinese Communist Party that much is true enough and the video includes plans of the first with the Cadillac logo shares the stage with a hammer and sickle symbol of the party.
But the video quotes extensively from a story in The Epoch Times newspaper, in which the journalist quoted a suspicion that GM Cadillacs marketed to senior party officials to curry their favor, but the full text of the story shows the reporter prefaced by saying, I have no proof so that speculation may or may not be accurate.
A statement that the leaders of China are also a host of city underworld is the opinion of the writer Epoch Times, Matthew Robertson As the video narrator mentions, management Epoch Times has many links with the dissident movement Falun Disciples Gong were widely persecuted by the Chinese government, and that may color the statement of the newspaper.
Another issue raised by the video is the sale of the Saginaw, Michigan GM supplier Nexteer -Based to a Chinese company, but the Wall Street Journal reported in February that the agreement has turned quite good for American workers today few people in the city are wringing their hands over the Chinese within a sprawling complex in Nexteer plant 59 years, entrepreneurs are tearing the old machinery lines and the installation of new equipment to produce a steering system e for the next generation of large trucks GM pickups and SUVs society, for years known as the Gear name management Saginaw, hired more than 100 engineers last year and is looking Saginaw 80 this year .
The narrator is essential to both President Barack Obama and the likely Republican nominee Mitt Romney He says two big Romney supporters took advantage of the bailout that art based on an independent investigator's report and author Greg Palast t may We vouch for the accuracy Palast is a veteran fraud investigator with an MBA from the University of Chicago, but as a journalist, he also has his detractors.
China is a good thing or a bad thing, or if GM bailout should have been treated differently, or not at all, we will also not take into measure whether car buyers should boycott GM, we take good course not able to know if GM operations the author of a version of an email indicating the title We note only that there are far fewer tax dollars at work suggests that this video and whether you like it or not the auto business is global, China is the largest market for cars on the planet, and if GM doesn t build and sell cars there while other things so this video is painful produce findings with or without the bailout.
About Our Company GM General Motors Corp. Web page undated, accessed 7 June 2012.
General Motors Corp.'s 2011 Annual Report; Form 10-K filed with the U S Securities and Exchange Commission February 27, 2012.
William, top U S Car sales in China Gilles Reuters January 11, 2010.
GM China Become Motors, become, China, motors, domestic content per cent.