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but the overall combined Chinese ownership is >50%
Posted by James (more from James) on Tue, 14 Jun 2011 03:16:52
In Reply to: stay calm, it is only a 29.9% share in SAAB, and is..., ryan, Tue, 14 Jun 2011 00:43:16
So there is a loss of control to Chinese firms... whether or not that is good or bad in the long term is still up in the air... in terms of chances of success of approval in China, >50% Chinese ownership helps that... This seems to be one of the better options given the current situation. Access to Chinese markets will be important... but I do have some concerns also... one is that the amount of money involved in these deals is imho not enough for the ownership stake (ie the Chinese firms got too good a deal for that stake because the deals were made sufficiently late that the investment risk was high, much like Spyker did from GM)... hopefully it's enough cash to bridge the gap to profitability! Also, we'll have to see how much the control funnels back and affects Trollhatten from a design + production standpoint... hopefully only for the positive. we'll see...

James...

posted by 67.158.7...
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