eMOTION! REPORTS MEDIA ADVISORY 12/20/11 - 2011/2012 Auto Industry Analysis: GM Bankruptcy Wholly Unnecessary; Had More Assets Than Ford - US President Was Inappropriately Advised

Shanghai GM Headquarters; Chevy Volt    Image: GM

From the Publisher:

Detroit  -  (12/8/11) This new analysis, due out December 20, 2011, will show that GM's bankruptcy was forced and wholly unnecessary, especially in light of the fact that the company's global assets exceeded that of Ford, who, under the leadership of Alan Mulally, and supported by the Ford Family and company board, wisely chose not to follow GM's path. A path that nearly destroyed the company and contributed greatly to the country's economic meltdown.

Shenzhan: Urban Modernity Fueled by Western Naivete  Image:  PRC

Despite its relative success, and boasting of China production and sales milestones (note: the authenticity and accuracy of such numbers continue suspect due to provable falsification of China statistical manufacturing data over the past several years) GM is a mere shadow of its former self, run by an executive leadership mostly comprised of personnel who have no business running an auto company. Indeed, a leadership who is at this juncture acting as pawn to a communist, dictatorial China government where there is no true private industry. And, as laudable as their stance relative to SAAB apparently is, one cannot help but wonder if this is part of a grander strategy that will ultimately see that Swedish icon completely absorbed into the China auto industry collective with GM's blessing.

The analysis will also show that the coterie of Presidential advisors involved in the making of a momentous decision leading to bankruptcy, had no true industry expertise among them, but were instead acting in the best interest of certain elements of Wall Street in collaboration with the Chinese financial sector. Former GM Chair Rick Wagoner and the company's leadership overall believed up until the moment President Obama called at 9pm EST Sunday, 31 May 2009, that they would not be forced into bankruptcy. Moreover, they had been advised by their Capitol Hill based people that "bankruptcy was off the table".

As of now, GM has lain the groundwork wherein its US workforce rolls. both administratively and in manufacturing, will be pared to an absolute minimum, an assertion all but confirmed by CEO Dan Akerson's recent -and rather ironic- comments in the Detroit News likening GM corporate culture to that of "The Communist Party in China in the 1960's", while comparing the historically provable vastness of the "GM Empire" to the former "British Empire". Thus implying the sun had set on both as justification for his actions.

What will become clear is that GM's "sleeping with the Dragon" may well prove to be its undoing... From the 12/20/11 analysis - Myron D. Stokes

Related:

From the archives - http://slidesha.re/6QiDnp http://slidesha.re/K6brD

The Chinese Hand That Bailed Out GM (China Daily 12/9/11) http://www.chinadaily.com.cn/cndy/2011-12/09/content_14236887.htm?bsh_bid=49705817

The United States China Economic and Security Review Commission Annual Report to Congress

http://www.uscc.gov/annual_report/2011/annual_report_full_11.pdf

http://en.wikipedia.org/wiki/Economy_of_the_People's_Republic_of_China
http://chinadigitaltimes.net/2011/09/chinas-puzzling-numbers/
http://www.pressreleasepoint.com/printpdf/431069
http://detnews.com/article/20111207/AUTO01/112070327/GM-trims-salaried-workers

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A Critical Matter of National and Economic Security: U.S.-China Economic and Security Review Commission 2010 Report to Congress

Today, [November 17, 2010] the U.S.-China Economic and Security Review Commission releases its 2010 Report to Congress. The Commission’s Chairman and Vice Chairman discuss the Commission’s findings and recommendations.



In his opening statement, Commission Chairman Dan Slane said “The 2010 Annual Report reflects the Commission’s conclusions that China has failed in some notable areas to fulfill the promises it made nine years ago when it joined the World Trade Organization. Specifically, China is adopting a highly discriminatory policy of favoring domestic producers over foreign manufacturers. Under the guise of fostering “indigenous innovation” in its economy, the government of China appears determined to exclude foreigners from bidding on government contracts at the central, provincial, and local levels. In addition, China has proposed that its many state-owned corporations be exempt from WTO rules on procurement. The Chinese government quite simply intends to wall off a majority of its economy from international competition.”


In her opening statement, Vice Chairman Carolyn Bartholomew commented on China’s military modernization, saying “As a result of China’s improved offensive air and missile capabilities, the Chinese military has strengthened its capacity to threaten U.S. forces and bases in the region. Currently, China’s conventional missile capabilities alone may be sufficient to temporarily knock out five of the six U.S. air bases in East Asia. Saturation missile strikes could destroy U.S. air defenses, runways, parked aircraft, and fuel and maintenance facilities. Complicating this scenario is the future deployment of China’s anti-ship ballistic missile, which could hold U.S. aircraft carriers at bay outside their normal operating range.”


Among the topics in the 316-page report:

Economics and Trade Issues:

· China’s ‘indigenous innovation’ policy to promote favored industries and limit imports.

· China’s currency manipulation and its effects on the United States.

· China’s purchases of U.S. Treasury securities and the implications for the United States.

· China’s measures to restrict rare earth element exports.

· China’s past and future role in the World Trade Organization.

Chinese Carrier Shi-Lang at Dalian Yards.This Ukr. 67,500 Ton Kuznetsov-class Vessel, Originally Varyag,is Operational
Now According to Our Intelligence Sources, Not 2015 as recently reported - Image PLAN

National Defense Issues:

· China’s growing air and missile capabilities, and the increasing capacity to strike U.S. bases and allies in the region.

· China’s improving commercial aviation manufacturing capabilities, and the spillover benefits for China’s defense aviation industry.

· The increasingly sophisticated nature of malicious computer activity associated with China.

Foreign Affairs Issues:

· China’s increasing political, economic, energy and security interactions with Southeast Asia, and the implications for U.S. interests in the region.

· Recent developments in the China-Taiwan relationship, and implications for the United States.
Energy and Environmental Issues:

· China’s efforts to promote green energy in order to increase its energy security, prevent environmental degradation, and develop a globally competitive green energy industry.

· Ohio’s response to China’s promotion of its alternative energy industries.

Censorship Issues:

· How China’s revised state secrets laws may conflict with U.S. disclosure requirements and put U.S. investments in Chinese firms at risk.

Related Analyses:

http://www.slideshare.net/GHHLLC2/ronis-scenario1-2-06a-sans-pw
http://www.slideshare.net/GHHLLC2/annual-report-to-congress-military-and-security-developments-involving-the-peoples-republic-of-china-2010
http://www.slideshare.net/GHHLLC2/project-on-national-security-reform-vision-working-group-report-and-scenarios-including-industrial-base-south-china-sea
http://www.slideshare.net/GHHLLC2/20092010-auto-industry-analysis-gms-transition-to-china-4-emotion-reportscom

The U.S.-China Economic and Security Review Commission (USCC) will release its 2010 Annual Report to Congress on November 17th



Image: China Flag.org

This year’s report will cover recent developments in the U.S.-China trade and economic relationship; implications of U.S. debt to China; China’s role in the WTO; China’s growing air and missile capabilities; China’s role in Asia, including Southeast Asia, Hong Kong, and Taiwan; China’s environmental and green energy policies; U.S. and Chinese efforts to promote solar and wind energy manufacturing; China’s domestic internet censorship practices; and the external implications of China’s internet related activities.

The 2009 Report can be accessed here:
http://www.uscc.gov/annual_report/2009/annual_report_full_09.pdf

Related: Project On National Security Reform Vision Working Group Report and Scenarios

http://www.slideshare.net/GHHLLC2/project-on-national-security-reform-vision-working-group-report-and-scenarios-including-industrial-base-south-china-sea

Testimony of eMOTION! REPORTS.com Publisher Myron D. Stokes During 2006 Hearings CHINA'S IMPACT ON THE U.S. AUTO AND AUTO PARTS INDUSTRIES (Page 174)

http://ow.ly/313Dn (note: Site may request download permission)

SOURCE: US "ENCOURAGING" CHINA'S SAIC TO TAKE CONTROLLING INTEREST IN GM DESPITE NATIONAL SECURITY RISK (Update 12/09 release)

GM Shanghai Campus Media Conference  Image: GM China

"It is our understanding several members of the original GM Task Force have been, and are, acting in the interests of China and not the US. We believe that the data presented in the December release and other analyses presented over the years, supports this contention." - Myron D. Stokes, Publisher


Detroit, MI, September 21, 2010 (PressReleasePoint) -- UPDATE: eMOTION! REPORTS.com sources are advising that officials within the US government, despite strong objections voiced by representatives of both CFIUS (Committee on Foreign Investment in the United States) and the Department of Defense (DoD), are "encouraging" China's SAIC to take a controlling interest in GM, with the intent of neutralizing its near-USD 50bil interest.



"Compromising national security", said a source who asked not to be identified as they were not authorized to speak on the adminstration's behalf, "in the interest of 'balancing the budget' with a Communist, dictatorial regime identified by the ANNUAL REPORT TO CONGRESS: Military and Security Developments Involving the People’s Republic of China 2010 as a clear and emergent 'threat' is not wise. It is our hope that wiser minds will prevail, considering the outcome in pursuing this course is decidedly ominous."



China's core aspirations to dominate the world's auto industry - and by natural extension, manufacturing as a whole - has been outlined with specificity by eMOTION! REPORTS.com, as evidenced by its December 2009 release 'GM's Transition to China"



Publisher Myron D. Stokes stated that "It is our understanding several members of the original GM Task Force have been, and are, acting in the interests of China and not the US. We believe that the data presented in the December release and other analyses presented over the years, supports this contention." -
Go to Full Press Release

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

Publisher's note:        

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