The next meaning of GM: Not ‘Government Motors,’ but ‘Global Motors’

And you were all hot and bothered by the idea of Uncle Sam owning General Motors. From the Wall Street Journal:

China’s biggest auto maker is close to finalizing a plan to buy a stake in General Motors Co., which is preparing for an initial public offering next week, according to people familiar with the discussions.

SAIC Motor Corp., which has built cars with GM in China since the 1990s, is among foreign entities who will become part-owners of GM when the auto maker returns to the public markets, these people said. A final decision could come within the next couple of days.

Separately, sovereign wealth funds in the Middle East and Asia are on track to buy more than $1 billion worth of shares, these people said. Such funds are attractive investors to GM and its bankers because they tend to hold investments for longer, providing stability for the company.

The issue of foreign investors buying GM shares in the company’s IPO is a sensitive one for the U.S. government, which will reduce its 61% stake in the auto maker in the IPO. Treasury also is worried about the political reaction if non-U.S. investors, such as sovereign-wealth funds or a Chinese company, are allowed to acquire a significant stake in GM after U.S. taxpayers spent $50 billion to assist the company through bankruptcy reorganization.

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21 comments Add your comment

bhorsoft

November 12th, 2010
3:30 pm

How about that, First!

bhorsoft

November 12th, 2010
3:31 pm

Se my post downstairs, The Chinese are already making inroads on the economic battleground.

Mr. KnowitAll

November 12th, 2010
3:35 pm

This is just another step in China’s move and strategy to hollow-out what remaining tidbits of manufacturing left in the USA.

What else do you expect them to do with the trillion$ of dollars they own that the Fed and Obama has now signaled they are going to devalue?

Whose next? IBM?

Jon Lester

November 12th, 2010
3:45 pm

I’d say it shows confidence in GM on the Chinese company’s part.

DannyX

November 12th, 2010
4:32 pm

The Chinese market is a big reason Government Motors is doing so well right now. The Chinese love GM cars and could purchase 2 million of them during the next year. GM does actually export some vehicles to China, not all GM cars sold in China are made in China, we send loads of parts there too.

All hail socialism I guess. Obama whipped that company into shape. Government Motors had another outstanding quarter. Their profits are soon expected to soar. Expect a nice return on the taxpayer investment.

General Sherman

November 12th, 2010
4:52 pm

DannyX.. Are you crazy or just another union idiot,why not just give them the damn country? Your Obama is trying his best to destroy the country from within!

DannyX

November 12th, 2010
5:09 pm

Careful now Sherman.

Without the Chinese you would have had to pay for the 2 Bush wars, Medicare Part D, and there would be no infamous “Bush tax cuts.”

Just think of China as MC/Visa. We put it on the GrandkidAmericard.

Thanks kids.

Last Man Standing

November 12th, 2010
5:39 pm

Maybe they will have a big enough stake to drive out the unions who are really responsible for breaking General Motors.

DannyX

November 12th, 2010
5:52 pm

“Maybe they will have a big enough stake to drive out the unions who are really responsible for breaking General Motors.”

We’ll the Chinese better bring a big bag of money! The United Auto Workers own 17.5% of all Government Motors stock.

The union did great!

Get a clue

November 12th, 2010
6:45 pm

China and other foreign investors buying into the GM IPO is a good thing for us. It means that they are investing in the U.S., which means their money is paying us back as taxpayers (rather than our own). It also means that they are that much more closely tied to the U.S. economy, which means they are less likely to try to do things that hurt us – we have their money.

Ignorance like that displayed by “General Sherman” is the reason this country is in trouble.

Selah

November 12th, 2010
7:21 pm

GM will always be Government Motors.

Ex Republican

November 12th, 2010
7:46 pm

Give me a break General Sherman. It is stubborn ignorant fools like you that is causing this great country to collapse from within. You and many others are so blinded by your hatred of President Obama that you all cannot accept any good news concerning the economy. You all fail to realize the magnitude of the mess that he inherited from Bush and the Republicans. Do you even realize the tsunami effect on the economy if GM had been allowed to fail, I don”t think so because you are so desperate for President Obama to fail that rational thinking is gone from you, that is you ever had any.

eli

November 12th, 2010
8:45 pm

This is the free market. Let it work or stop pushing it.

Rural Education

November 12th, 2010
9:29 pm

You people blaming Obama are just clueless. The minute we allowed the “blue collar” middle class to be destroyed for CEO salaries we put America on this path. Adam Smith and the free market are alive and well. Corporations exist to make money, borders don’t matter. My 401k has rebounded nicely.

No Fan of Any Team

November 12th, 2010
11:38 pm

Oh, those wacky Chinese, they just love our big, gas guzzlin’, inefficient cars. It’s their bling.

Alabama Communist

November 13th, 2010
12:28 am

As a true red communist! I am thrilled to hear that Red Fascist China is buying Obama Motors since Obama has turn out to be a secret Tea Bag Republican…….My understanding is that the first model will be the Goldman Sachs Limo Special…………

phil

November 13th, 2010
5:47 am

They are still Government Motors, it is just the Chinese government.

Last Man Standing

November 13th, 2010
7:41 am

Selah

“GM will always be Government Motors.”

Nope.

GM will forever be known now as Obama Motors – and I wouldn’t buy a car from him!

green tea perfume

November 13th, 2010
8:53 am

Hi Refined blog despatch! But is your information truly correct?

Hello World, Goodbye Georgia

November 14th, 2010
11:40 pm

Is it just me, or did you guys not get the memo, the automakers paid back their money already!!!!! The Name is then General Motors!!!!! While you guys are anxiously…crying over Georgia and USA politics the rich are getting richer and the middle class and poor are joining neighborhoods!

Larry Major

November 15th, 2010
4:56 am

It’s time for a fact review. By mid-December 2008, Bush had cut a deal with House and Senate Democrats for funding GM and Chrysler, but it was blocked by Senate Republicans. When Congress adjourned that month, Bush did exactly what he told Congress he would do if they failed to act, and issued a $25 billion TARP loan by executive order. This agreement required a Chapter 11 filing should GM fail to demonstrate long term viability.

When the restructuring occurred under the Obama administration, the TARP loan was repaid with proceeds from stock sales to the government – basically, a debt to equity conversion. (This sounds silly, but it was actually a good idea for reasons that would take up an entire blog.) The conversion was negotiated by the Obama administration and although it wasn’t required, it did appear in the list of non-binding targets from the Bush loans.

The administrations’ differences were minor and Obama basically executed the plan designed by Bush. Those with a problem over the way over 1 million jobs were directly saved by avoiding a Chapter 7 need to blame both presidents.

Keith Hennessey, senior White House economic advisor to President Bush, has more details on his web site for anyone interested.