Wednesday, April 20, 2005

Rover Red Rover Come Over Come Over

We used to play this violent game in school in the fifties. It was called "Rover" and you chanted, "Rover red rover, come over come over", and the kids standing in an opposite line would charge like linebackers and you would have to stop them from crashing through. This required a strong stomach and stronger arms. I loved playing this game.

Well, so do the Red Chinese!

China's largest car maker, Shanghai Automotive Industry Corporation (SAIC), is set to build Rover cars in China.
Officially the company says that no decision has yet been made, but sources close to the company have told the BBC that the plan is likely to proceed.

The Rover brand name belongs to BMW, but the Chinese are confident they can secure the rights to call the Shanghai-built cars Rovers .

SAIC last week pulled out of a last-ditch rescue deal for MG Rover.

Rover went into administration when the deal collapsed with the loss of 5,000 jobs.

The Brits are yelling about this. The Germans, it seems, are busy making deals in China. Britain wants to be aloof from Europe and let Bush and Condi represent their interests so lo and behold, the Chinese ream them out.

So let's revist the Ford story.

US car giant Ford Motor saw its profits fall almost 40% in the first quarter, as falling US sales and rising prices for raw materials ate into margins.
The company said its net profit was $1.21bn (£630m), on sales of $45.1bn.

The news comes less than a month after Ford warned it would fail to meet 2005 profit targets, and would miss its long-term annual profit goal of $7bn.

But its performance contrasts with that of arch-rival GM, which a day earlier said it lost $1.1bn in the same period.

Both car makers are facing intense difficulties in their home market, as rising fuel costs and flagging consumer spending hit home.

They now rely on loans and other financial products to make most of their money, while they struggle to deal with huge healthcare costs and rising prices for raw materials.

Well, well, well. Ford's stock went up because the news isn't as hideous as it could have been like with poor GM which must stand for "General Mismanagement". Unfortunately but utterly predictibly, both companies are up the creek without a gas miser. They urged people to splurge and now everyone is suffering from hangover and hangnail.

In the Ford story, it note that sales in China are expanding. It doesn't note that these sales are due to the opening of Chinese factories. The Red Rovers of China know what is important: jobs. And they are ruthlessly going after the jobs. One wishes one's own rulers were this interested but we are stuck with our Diebold winner: Bush. He is busy alienating even our allies. The guy in Italy went down today. He hopes to pop back into office. Doesn't look good for him. And Blair! I should lock up my razors if he visits. He seems bent on suicidal governing.

Metal futures are booming thanks to the roaring Chinese economy. So much to build! So many things to build!

The Chinese government reported overnight that first-quarter gross domestic product grew by 9.5%, helping precipitate the rise in copper amid expectations that orders for the industrial metal will stay robust.

Well, the price won't go too high, there will be little inflation since our own auto industry is going to keel over dead.

Rover red rover comes crashing over....

Links to this post:

Create a Link

<< Home