Wednesday, August 19, 2009
OK, so I thought this deal would never really happen. I thought maybe that the Chinese government would have the good sense to look at some of the recent offshore acquisitions by Chinese companies and decide that wasting foreign exchange on bad deals is perhaps not the best way to reduce their excess of foreign reserves. Well, I'm man enough so it looks like some form of this deal will actually happen. Now, it's at a reduced price - $170 million. But, Tengzhong Heavy has hired the former president of international business of the Chinese car manufacturer Chery. Chery signed a deal with Chrysler in 2007 to export low cost cars to the US, so this guy has real car experience. He'll open and then run a sales division in Shanghai. A sales division? I guess that's like a big dealership.