Models with the highest levels of consideration in each segment:
- Compact segment: BYD F0 and Chery QQ3
- Premium compact segment: Chevrolet Sail
- Entry midsize segment: Volkswagen Polo
- Midsize segment: Chevrolet Cruze
- Lower premium midsize segment: BYD F6
- Upper premium midsize segment: Honda Accord
- Luxury segment: Audi A4L
- SUV segment: Volkswagen Tiguan
- MPV segment: Buick GL8
The U.S. government is eager to unload its 61% stake in GM after taxpayers bailed out / loaned the iconic automaker to the tune of US$50 billion. This comes despite the political ramifications of selling part of the brand to foreign investors or sovereign-wealth funds.
The government has rejected suggestions that the IPO should be limited to domestic investors, however the Treasury has state that no single investor or investor group would receive, "a disproportionate share or unusual treatment."
The Initial Public Offering (IPO) of GM shares will include those held by the U.S. Treasury, a union-managed retiree trust and the Canadian government. The government's plan is to offload their stake in GM in one month, though GM CEO Dan Akerson believes it could in fact take years. The Treasury will wait until after the November midterms in order to keep politics out of the float.
SAIC's bid is not that farfetched, either. Insiders note that SAIC has been building cars with GM in China since the 1990, with its home market a key source of strength for GM. Year-to-date sales were up 19% in August, for instance, even though the U.S. and Europe are still struggling.
By Tristan Hankins
Source: WSJ
According to the Wall Street Journal, executives have been given a proposal that would provide China with a majority share in any joint venture involving foreign companies introducing "key new-energy components...such as advanced lithium-ion batteries and high-power electric motors". This would allow China to gain control of the technology that minority shareholders (i.e. anyone else) bring to the table.
In response to this, one anonymous executive said, "[This is] tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access. We don't like it." Another executive has claimed this sort of scheme simply "raises the hurdle" in building electric cars in China.
This technology-for-market access trade, in turn, would push China one step further toward its goal of being a world leader in electric vehicles; looks like they'll pass on improving their current vehicles and move straight onto electrics (because by now the Chinese have realized that their own cars are WAY off the mark). Another step in attaining its goal is to consolidate and concentrate its automotive manufacturer base.
Ultimately, China hopes to have three to five manufacturers building globally-competitive electric cars. According to non-Chinese execs, the investment could require up to $15 Billion (100 billion yuan) and no one seems to be sure where the money's coming from; that is, no one is sure how much cash foreign companies will need to invest and how much China's government will put up.
That money, however acquired, would go into manufacturing facilities, suppliers, and infrastructure for China's future electric/hybrid vehicles (estimated to be five million by 2020).
At the World Economic Forum, Chinese Premier Wen Jiabao said, "China is committed to creating an open and fair environment for foreign-invested enterprises...Foreign-invested enterprises in China on the whole enjoy a good environment and have reaped good returns."
Oh, and get this: the Industry Ministry has asked for opinions from state-owned automakers and its fellow ministries to see if anything needs to be postponed and reworked.
That's like asking your reflection if that next shot is a good idea (hint: it always agrees with you). What's worse is that this plan could go into effect NEXT MONTH. Looks like China is getting a little too big for its britches...
By Phil Alex
Source: WSJ
