Saturday, July 10, 2010
A Brief Analysis of Why The World's Auto Industry Should Be Concerned With GM's Sell-off of NEXTEER to The People's Republic of China
If there was any doubt about the accuracy of assertions made in the ER analysis "GM's Transition to China" relative to who truly controls General Motors, the inexplicable sale of NEXTEER (formerly Delphi Division Saginaw Steering Gear) a tier one supplier of steering wheels to GM, Fiat SpA , Ford Motor Co, Toyota Motor Corp, Chrysler Group LLC, PSA Peugeot Citroen, along with automakers in South America, India, and China -- subsequent to the extraction of significant concessions from the UAW -- to the Beijing-controlled Pacific Century Motors JV, confirms it. And, it is worth noting that 15 years ago in a private conversation, J.T. Battenberg III, former CEO of Delphi, was specifically warned of China's takeover intentions.
As far as eMOTION! REPORTS.com analysts are concerned -- with as much professional respect permissible -- the observably short-sighted, uninformed and irresponsible GM "management" team has just handed the automotive sector of the People's Republic of China a kill switch to its global competitors; assuming CFIUS (Committee on Foreign Investment in the US) permits this.
It goes without saying that if the aforementioned client base of Nexteer are not concerned, they very well should be.
- Myron D. Stokes