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China wields coronavirus to nationalize American-owned carmaker

4K views 35 replies 15 participants last post by  TruckMan 
#1 ·
China wields coronavirus to nationalize American-owned carmaker
https://www.foxbusiness.com/markets/china-coronavirus-nationalize-america-owned-car-company

August 8, 2020
By Jonathan Garber

China enticed an American entrepreneur with the opportunity of helping build a cutting-edge automobile company in the world’s largest car market, then used the uncertainty cast by COVID-19 to steal his intellectual property, the businessman says.

Steve Saleen, founder of specialty high-performance sports car manufacturer Saleen Automotive, and his partner Charles Wang, a Chinese immigrant and former attorney at a New York law firm, were approached in late 2015 about forming a joint venture with the city of Rugao to manufacture automobiles.

The deal “offered, I thought, from my standpoint, a great opportunity to help build a global company,” Saleen told FOX Business.

The agreement that was reached called for Saleen to contribute his brand and trademarks, designs for three engineered vehicles and experience, know-how and technology in manufacturing automobiles, he said. Those contributions were valued at $800 million.

Wang, who helped structure the deal, would serve as the company’s chief executive officer.

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#2 ·
Wow. Unbelievable. This should be making national headlines.

This article has political aspects but is automotive related. I am very much unclear as to what crosses the line for the GMI staff. So if the GMI staff doesn't like this, please just delete the thread and send me an message as to why this is not acceptable vs. banning me with no explanation.
 
#3 ·
You beat me to this again!

This is a significant story. Getting in bed with the devil is typically not good policy. And beware of "this looked like too good a deal to pass up." When you're dealing with a criminal, any "too good a deal" is too good. Lessons learned department, perhaps for others.
 
#5 ·
I believe it would be impossible to have a site like GMI that discusses GM’s global product offerings manufactured by companies partially owned by GM and Chinese government entities without considering these issues. These issues affect GM’s product decisions as well as the decision where certain vehicles are manufactured. Remember in a 50/50 JV like SGM, SAIC has veto power. So when those on the list wonder why GM does or doesn’t do something trust me a Steve Saleen situation is in the back or maybe front of the mind of GM executives. I remember flying back to the US from China with Bob Lutz. I asked him if he thought the Chinese could take over GM’s operations. He responded that it was a question of when not if.
 
#12 · (Edited)
This is a tricky time for all but Steve Salees's experience should serve warning to the wary
that the Chinese on their own turf are 99% unbeatable and will take your IP if you're not careful.
The Chinese saw another greedy dumb businessman and set conditions to take advantage of
his inability to travel and maintain control of his project. Dealing with China means you need clout
and trademark everything. Even then, I doubt they respect other companies' IP ( Korea just as bad).

If I were Ford or GM, I'd be looking at getting out of China fairly quickly as its now a house of cards
ready to fall over in the next headwind. There's nothing to be gained from China's 50/50 JV crap, it's
just extortion for providing cheap Labor and access to markets without incurring import tax?
 
#13 ·
Damn this tropical storm Isaias and the power company - Eversource. What a botched response - I'm on day 6 of no power (fortunately I have a generator). The internet comes and goes.

I can't wait to see companies pull production out of China. They better start, I hope this isn't just rhetoric and companies end up staying. The Chinese are nothing but a gang of thieves and drug dealers (they supply a huge chunk of the illegal drugs).
 
#14 ·
Similar thing happened to Jeep early in the Chinese commu-capitalism experiment: they put together a deal to make Cherokees in China and had to fight to keep control of their design, which the Chinese explicitly wanted them to give up for free. They got that worked out, build their factory, and lo and behold, someone else started selling a near exact clone of the Cherokee. As I recall, Jeep pulled out as soon as they could after that.
 
#17 ·
Yeah, that's how the Chicommies roll. If not for stealing/gypping Western tech, they'd still be a starving nation of huts, rice farmers, and fisherpersons. The goodwill of the West has put that behind them. Never give a sucker an even break.

 
#22 · (Edited)
Although one can mix communism (a political structure) with capitalism (an economic structure), it is a pretty obvious reason as to why they are doing it. They don't care about people--just money.

Anyone outside of China doing business inside of China--especially these days--better be damned sure that their cards are stacked against them. Mind you, they've always had, but, as even people have posted here, it's taken China a few years (decades in fact) to figure out their hand. Meanwhile, the rest of the world has usurped the advantages of going "capitalism" in China. China has finally woken up to the fact that they really could make a lot more money if they just used their deck of cards more "wisely".

Poor 'ole Saleen got bitten by this. The hubris was that he thought he had someone who had better knowledge of the country with him when in fact, anyone not a part of China today doesn't know China at all.

Note to self: don't start a company in China--just do business in China. Make good product and sell it there--not directly, but, with non-Chinese importers/exporters. Allow the knock offs because that actually increases your sales... Always be at least one layer away from them. A global company is one that makes good enough product to sell globally...

To add fuel to this fire take a look at this: https://www.virginiabusinesslitigat...oads/sites/52/2018/09/McAuliffe-complaint.pdf

Apparently, Mr. Wang had it coming...
 
#26 · (Edited)
Again, after 10 minutes of searching, I can see how the Chinese government did what they did--looking at it from their perspective. It looks like Saleen picked a guy to start this business in China as a Chinese-American who was at one time a lawyer and was instrumental in bringing Chinese business people into the US by asking a ton of money (at least it's a ton for me) in return for political connections. I am assuming that the Chinese didn't take too kindly to this because there was a law suit about this--not created by the Chinese government (or at least I couldn't tell in the 10mins I used up researching). So, fast forward a bunch of years and the Chinese government do some "due diligence" and find out who this guy is and retaliated--they now have some of his technical know-how along the way.

This is my research only after 10 mins. I find it hard to believe that Mr. Saleen in trying to start a business in China didn't do this himself. I mean just google it for cryin' out loud. If you don't have the time for such an important event for your business such as this then you must be either too full of hubris or just assumed that this guy knew what he's doing.

As always, places like Fox always provide part of the story--one that just so happens to fit within their themed content. The full story is much different and honestly makes Mr. Saleen not look too good as opposed to a victim...

He wasn't a victim. He decided to play poker with these guys, bet too big without doing his own due diligence, and lost...
 
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