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Automotive Subsidies, Bailouts and Sweetheart Deals From the Government - Not Just in the US Anymore Will the US hold on tight on the auto industry? What happens since the Euro Zone collapses and that we can't sell cars there and China ramps up production because of its growing middle class consumers domestically? It appears China is poised to take all this, and also the European, Japanese, and US car makers do not possess the ability to stop the onslaught - in a decade, China will own the global auto market, perhaps their biggest competitor will likely be Tata Motors in India. Okay so, when it comes to all this, and what I see on the horizon presently. The Wall Street Journal posted articles in their online news on May 30, 2012 titled; "BYD Defends Electric Car; China Plans Broad Subsidy," by Joanne Chou. According towards the article, and I have absolutely no reason to refute good news, the all-powerful communist Chinese Government will fund research and development for hybrid automobiles on the tune of between $160 to $315 million. These newly engineered state of the art vehicles will probably be sold all over the world for export, yes, inside the EU, Australia, and United States. Further, since Chinese banks have become in a position to operate retail offices in the US, probably they will loan money because of these new cars, and guess who is leading the charge at BYD motors in China - our own Warren Buffet, web-sites a massive amount of shares and possesses lots of clout only at home with friends inside White House, on Wall Street, along with nearly every major industry. Imagine Smart Car sized Chinese made hybrids running around town, with you inside it, fresh from China, with a low-interest loan and simple payments. This sort of puts the GM bailout all to shame, as well as the dismal sales in the Chevy Volt - a great deal for your government debacle. Okay so, exactly why is China subsidizing research on batteries? Well, apparently the BYD batteries caught fire when discontorted by 50% in abuse crash tests, meaning they are unable to must the regulatory DOT rules right here at home - yet. Of course, having a little research and seeing as A123 Battery Manufacturer, also US government subsidized and preferential DOE loans failed, the field is wide open again - and China wants that industry - she's going to take it. Meanwhile, i want to be described as a horse's rear-end here making a statement. In my view the $160 to $315 high dollar battery research from the Chinese government won't really be used to develop the technology, rather to gain access to or collect the information from American R&D units via cyber and corporate espionage, then corner industry, and sell everyone within the US a hybrid Chinese pocket car that may fulfill the Obama Administration's new CAF?� standards for fuel economy. Looks like we have been about to share a mainstay industries - despite our government's make an effort to appease unions, and bail out. I do recall Steve Jobs getting upset inside the media once, he said "we don't mind competing, but make use of own technology, stop stealing ours," and I estimate that too is my frustration as I see doing this unfold inside the auto industry on this occasion. Please consider all this and think about it.
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