My first Prediction...the Chinese are coming!

First time on the prediction board, so hope this is not too vague.

With the current situation in credit markets, housing markets and out once formidable auto industry.......THE CHINESE ARE COMING and they are taking names and kicking our butts.

Everyone knows about all the recent investments, but I am going to go out on a limb and predict that China will be a new player by the year end in the US Auto Industry.

HOW???
Easy!

Chrysler was purchased last year by a private equity firm, Cerberus. They acquired many companies or parts of many companies in the last 2 years. Their biggest investments have been GMAC and Chrysler, LLC. their 49% stake in GMAC has been nothing but a huge cash draw as they have a large SUB PRIME MORTGAGE asset within that company. Bet most of you did not know that. Well, as with the rest of the industry....its hemorrhaging cash. This on top of the disaster acquisition known as Chrylser has put them in big troubl (MY OPINION COMPLETELY). They have backed out of 3 other major acquisitions within the last 6 months, each time having to pay break up fees exceeding $50 million. They have not been able to obtain financing and have been very fortunate the courts did not force them to go through with the acquisitions.

My prediction....they are going to have to sell Chrysler..... Who could possibly be willing to pay a premium for a piece of crap? THE CHINESE. This would be a coup de tat and give them a foothold in the North American auto industry. They are already supplying us with a large number of auto parts, why not sell the cars too?

This is just my prediction...........

Businessweek said something similar ...two years ago.

MAY 26, 2005
Here Come Chinese Cars
China aims to be a big auto exporter, with help from big names manufacturing in the country. Detroit isn't looking in its rearview mirror -- yet

article

reply to post by traderonwallst


Heck Walmart practically tells its suppliers "Move to China or else."
but that is not car based.
China is the next superpower. End of story.

O.K a lot of people seem to be saying that dragon is awakening and China will be the next superpower etc just from its incredible economic growth. People look at the statistics and say wow double digit growth for over 15 year’s or something or other. But what you have to realize is that if any country that was as poor and closed of with a cheap labor force like China and suddenly opened its doors to the world a monkey could have governed growth from these circumstances.

You also must realize that China has a lot to overcome as well. With deep corruption, pollution, civil unrest and a bubbling housing and stock market. I am not saying they don’t have the potential to be a superpower but there is a lot of hurdles to jump over first.