Where does the money come from? Can GM be married to FAW?

Recently, the media revealed that General Motors will join FAW to establish FAW-GM Light Commercial Vehicle Co., Ltd., which had previously passed pre-approval from SAIC. GM's situation in North America is very bleak. If it is not accepted by the Bush administration, it may be that GM has now died. At present, General Operating Officer Han Desheng called on the government to continue to provide loans, saying that GM cash is difficult to support until the end of March, and GM has become a bottomless pit. I am afraid that the Obama administration can't let GM come back to life.

In order to increase the general cash flow, GM will sell a factory in the United States owned by Michigan, named "Flint", which specializes in the production of medium trucks such as GMCTopKick and Chevrolet Kodiak. This seems to be inconsistent with GM's FAW. General Motors Faw is mainly looking at the light vehicles of China FAW Hongta, especially light trucks. FAW Hongta is a light vehicle production base established by FAW Group and Yunnan Hongta Group in 1997. It has two commercial vehicle and passenger vehicle platforms, with an annual production capacity of 150,000. FAW Hongta, which currently has commercial vehicle happiness messengers and free wind, light trucks and heavy trucks, has a market share far less than that of Beiqi Futian. At the same time, GM sold medium trucks to Isuzu, and Isuzu’s light truck market share in China is lower than that of FAW Hongta. Not much less, then, GM Marshal FAW Red Tower can obtain more market share in China, in order to FAW Hongta become GM's second in China's SAIC-GM-Wuling, certainly difficult.

General Motors took all the stops to solve the financial problems, including selling factories, accepting government loans, selling equity, etc. At present, the general sale of Suzuki's 3% stake in exchange for 230 million US dollars, the general fund can survive through the end of March, Still an unknown number. GM needs a lot of money to finance. However, engaging in a commercial vehicle project with FAW not only needs funds, but also may cause GM and SAIC relations to conflict. GM may cause dissatisfaction with SAIC.

Where does GM's Faw's capital come from, and GM's headquarters must have no money to support GM's marriage with FAW, then only GM Asia Pacific will provide funding. How does GM's performance in the Asia-Pacific region look like? In addition to the success of GM's projects in China, GM's projects in Thailand are also in urgent need of financial support. GM has even sought funding from the Thai government for 143 million U.S. dollars in order to maintain GM's car manufacturing projects in Thailand. Well, if GM gets married from FAW's profits and FAW, it is bound to dissatisfaction with SAIC.

In addition, SAIC did not include GM in the strategic deployment of commercial vehicles. On the one hand, SAIC has established joint ventures with trucks and buses with multinationals such as Iveco, Volvo and Fiat. It is difficult for GM to find a suitable vehicle from SAIC. Commercial vehicle investment opportunities. On the other hand, with SAIC becoming more and more determined in its own brand, once SAIC’s own brand business income is stronger than the joint venture company one day, or when SAIC no longer only depends on the joint venture, the foreign partner will face severe challenges. It is unthinkable for GM, which has only one partner in China.

If GM Asia Pacific really has so many funds, why not provide them to GM's North American headquarters and help the headquarters without big heads? GM’s joint venture in China, whether it is Shanghai GM or SAIC-GM-Wuling, has earned a lot of money for GM, and the huge size and potential of the Chinese market are also the only cakes with the greatest growth potential among the major giants. Everyone wants to share a cake.

In the face of strong competitors, GM engaged in FAW to engage in commercial vehicles, especially light and medium-sized trucks, but also to see whether Beiqi Futian is willing to give up market share. Beiqi Foton is the first in the commercial vehicle sector for five years in a row, and it holds more than 90% of the commercial vehicle market share. FAW was defeated by Beiqi Futian and SAIC in the field of commercial vehicles. GM's marriage with FAW to engage in commercial vehicles could not defeat Beiqi Futian like GM Wuling defeated Changan, and apart from Beiqi Futian, SAIC Commercial Vehicles and JAC Commercial Vehicles, and also There are growing Qingling and other light truck companies.

Of course, with the reform and opening up and the construction of township and township economy, the market has great demand for commercial vehicles, especially light trucks. This is also a chance for GM to marry FAW. Can GM get profit from the marriage of FAW in the field of commercial vehicles or become a General future burden? If North American General Headquarters eventually collapses, GM's projects in China will be affected sooner or later. Can GM turn salty fish and look at the life cycle of a company. How many years will GM survive? After all, the general loss in the second quarter of 2008 was US$15.5 billion, and the loss in the third quarter was US$4.2 billion. In the fourth quarter, we still do not know how much to lose. How long can the government's aid funds last? When will GM close down?
View related topics: Beiqi Futian, Futian Automobile brand value of 22.157 billion yuan

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