GM, GE and the ChiComs
September 27, 2011
RUSH: From the National Legal and Policy Center blog. "Not surprisingly the new partner -- in a 50-50 joint venture with the state-run auto industry -- is China. And also unsurprisingly, General Electric will join GM in a related partnership in the [ChiCom] nation. Professional subsidy-sucking General Motors, which seems content to marinate in its taxpayer 'investment' indefinitely, is getting ambitious. No, not in the sense of paying back the $50 billion U.S. government bailout, or in producing vehicles people actually want to buy, but instead in finding other governments to subsidize its products. ...
"And you probably already guessed the agreements surrounding the development and sales of electric vehicles. But GM took great pains to emphasize that it does not have an ambitious plan in the [ChiCom] Republic for the Chevy Volt - whose sales have been a dud in the U.S. -- because it is not allowed to take advantage of generous Chinese government subsidies for electric vehicles, because the Volt (and also Nissan with its Leaf) are produced outside [China]. Instead, in order to be able to grab ..." Get this: $20,000 subsidy per Volt. China is going to give voters a $20,000 subsidy per car, and, in order to get the subsidy, GM must share their technology with ChiCom auto manufacturers and produce the vehicles in China.
So here we are in the midst of Obama trying to make everybody think that he wants jobs, jobs, jobs -- and he's got this massive $447 billion jobs bill. It's so crucial and so important that no Democrat in the House will move it forward. Dingy Harry has got his name on it in the Senate, but (paraphrased), "Hey, we're not gonna move this thing forward. Nah, we got a vacation coming up. When we come back we're gonna work on something with the Treasury department and try to get the ChiComs to stop manipulating their currency. We'll get to the jobs bill later." The point is they don't want any part of the jobs bill. No Democrat wants to vote on it. They don't want to be on the record about it. It's nothing more than a prop, it's nothing more than a Greek column, so that Obama can use it on the campaign trail to make it look like he wants to give jobs and produce jobs.
The Democrats are not the problem in his mind; the Republicans will not move the bill forward. The Republicans -- and of course here's Dingy Harry openly saying he doesn't care about it. There are many other priorities, and you watch: Before this is all said and done, Obama's jobs bill is going to die because the Republicans wouldn't do anything with it. While all that's going on, General Motors and the UAW will be sharing technology with Chinese automobile manufacturers to build the Chevy Volt in China so that General Motors will get the $20,000 subsidy per car. General Motors and GE go all-in for China subsidies. Subsidies from the United States government for the Volt are not enough. "In order to grab..." Let me read it to you again, and this is from the National Legal and Policy Center: "In order to be able to grab the $19,300-per-car [subsidy or] 'insensitive,' automakers must share their technology with [ChiCom] counterparts and produce the cars over there.
"So we now have the GM China Advanced Technical Center in Shanghai, adjacent to the company's local headquarters and in a 50-50 partnership with Chinese state-run SAIC Motor Corporation. And rather than call it the Volt, the combined venture will likely develop and implement the electric technology in the Shanghai GM Chevy Sail model, which was introduced late last year. According to The Economic Times: The agreement finalizes a nonbinding memorandum on cooperation for green-vehicle development SAIC and GM signed last November. At the time, SAIC agreed to buy a 1 percent stake in GM through an initial public offering held to make GM a public company again and cut the US Treasury's stake in the company."
So China buys a 1% stake, it's not a public company. We can share the technology, get a $20,000 subsidy from the ChiComs, build the cars over there. "In addition, the New York Times reported this week that 'GM holds minority stakes in manufacturing joint ventures in China that sell more cars each year than GM sells in the United States.' Of the move to jointly advance technology, GM vice president Stephen J. Girsky told the newspaper, 'This is not a political decision today. It's a business decision.' ... Meanwhile, as has been forecast many times by NLPC's Mark Modica, GM is unloading a number of the worthless Volts on General Electric for use in China." General Electric is buying a bunch of Volts to ramp up sales figures because nobody else wants them. General Electric is going to buy a bunch of Chevy Volts and use them in China. This was announced last Thursday.