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Old 12-18-2008, 07:22 PM
 
1,956 posts, read 4,861,952 times
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Quote:
Originally Posted by Woof View Post
Oh, great .... I missed that one. So they're expanding in BOTH Mexico and Russia, but don't feel like using that money to fend off bankruptcy in this country ..... not when they've got a good fat bailout in the works.
They're expanding in Mexico and Russia because they'll make money in Mexico and Russia - those are big markets for them now. Their operations there will be completely self sufficient and profitable.
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Old 12-18-2008, 10:31 PM
 
Location: where you sip the tea of the breasts of the spinsters of Utica
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So who is funding the expansions then, StoneOne? I thought they were going broke. Where's the money coming from?
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Old 12-18-2008, 10:46 PM
 
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Quote:
Originally Posted by Woof View Post
So who is funding the expansions then, StoneOne? I thought they were going broke. Where's the money coming from?
In the case of Russia, GM's operations are done through a separate company called GM Avtovaz, in which GM has a 41% stake (purchased in 2001). Here's the info:

GM-AVTOVAZ (http://www.gm-avtovaz.ru/new_en/inside.php?page=contents/company&model=it7 - broken link)

In the case of Mexico, it also appears to be a separate company, probably with substantial local investment as well.

GM - Global Operations - Mexico (http://www.gm.com/corporate/about/global_operations/north_america/mexi.jsp - broken link)

The expansion is being funded by those markets!
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Old 12-19-2008, 10:49 AM
 
12,869 posts, read 13,431,997 times
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on the russia deal:

In what EBRD First Vice President Charles Frank called "a landmark project for the EBRD in Russia," EBRD agreed to provide $140 million: a $40 million equity investment and a $100 million loan. GM in turn brings $100 million in cash to the venture, while AvtoVAZ is providing $100 million in the form of production facilities, equipment and local know-how.


on mexico (they actually already have other plants in mexico):GM invests US$1 billion

Villa de Reyes, SLP, Mexico,- With a US$ 1 billion investment, General Motors Plant in San Luis. Potosi started operating yesterday to produce Aveo, a model that will be sold in Mexico and South America. The plant, located at Villa de Reyes Municipality, will generate 2 thousand 500 direct jobs and more than 17 thousand indirect jobs.
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Old 12-20-2008, 08:28 AM
 
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I was listening to Michael Savage and he was exposing the Bush cronies that will get helped by the bail out, at least with Chrysler. Cerberus Capital Management ( that name alone makes you wonder), has Dan Quayle as a board member and a guy named Snow who was treasury secretary under Bush, and they own Chrysler. The spooky part is they have also been buying up firearms companies. WTF? Either they plan to make a fortune supplying people who suddenly want to have guns or they'll prevent them from getting them. Anyway, Cerberus wanted the bailout but wouldn't commit any of their own money to Chrysler.
We are living in very interesting times, indeed. Conservatives opposed the bailout, Bush and company supported it, as did Obama and many democrats. I know Obama and Bush are on the same page on many issues no matter what both sides will say otherwise, but why does it seem that the rich get bailed out and the common citizen is getting handed the bill and is still getting nothing?
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Old 12-20-2008, 02:25 PM
 
Location: down south
514 posts, read 1,455,846 times
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Quote:
Originally Posted by Woof View Post
So who is funding the expansions then, StoneOne? I thought they were going broke. Where's the money coming from?
Lots of their oversea subsidiaries are either joint venture with substantive local investment or GM past purchasing of local companies, in both cases, the local subsidiaries have deep root in the local market and can and do earn substantive profit, not to mention the tax and other incentives provided by local government. Financially and manufacturingly, they are very much independent companies. If memory served me right, Opel was a German company bought by GM, but it's still considered a German company, German government provided billions to help Opel to deal with the downturn, and one condition of the cash injection is that none of the German tax money shall leak out of Opel and back into GM, the money is for Opel, not for GM, even though Opel is owned by GM. We live in a globalized local economy, often local are not really local and global aren't really global.
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Old 12-20-2008, 06:11 PM
 
939 posts, read 3,131,026 times
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Originally Posted by Icy Tea View Post
I know Obama and Bush are on the same page on many issues no matter what both sides will say otherwise, but why does it seem that the rich get bailed out and the common citizen is getting handed the bill and is still getting nothing?
They get handed he bill but they still get to keep their jobs (at least for a little while longer).
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