“China has opened its once-rigidly controlled economy in a way that has allowed both domestic Chinese and foreign nationals to flourish, deftly handling the conflict between communism and capitalism by brushing economic ideology aside.” Bain Capital.
Should we not also learn to do THAT here in America, Mr. Romney – brush economic ideology aside? The economic ideology of Tax Cuts, the economic ideology of policy making, the economic ideology of regulation? But Republicans AND Democrats would have to work TOGETHER!!!
It’s more politically advancing to be hypocritical and pretend you’re going to bite the hand that feeds you! Like China – a country that Venture Capital firms including Bain Capital are flocking to like vultures to a carcass.
Romney is pledging that should he become President, the FIRST thing he will do, on DAY ONE in the Oval Office is haul China before the World Trade Organization because of China’s Trade Practices. (Well isn’t THAT the most important issue?)
And the Tea Party THINKS Romney’s FIRST act will be to repeal Health Care Reform, the one based on his “Romneycare” in Massachusetts. Dream on!
Anyway, with Romney SO AGAINST unfair trade with China, so against the very idea of China benefitting to the detriment of America and American businesses, you should probably ASK him WHY Bain (the company he makes his millions from) has offices in three Chinese cities: Shanghai, Hong Kong and Beijing?
I guess those are to handle the fall-out after Romney clamps down on China? Guess Romney thinks the Chinese will be pleased with Bain when Romney goes after them? I’m also sure Bain is encouraging Romney to “go on, get the Chinese. Even though they close our offices we don’t care about profit – we care about fair trade!”
Imagine a parent saying: “The moment I take over the PTA I’m going to see to it that we stop buying our textbooks from X Publishing because they are too expensive” then you find out his money comes from a Public Relations company that sends its authors to X Publishing!
How would that play with you?
Well Bain Capital, the same Private Equity/Venture Capital/Financial Services company that Romney touts as the backbone, foundation and underwriter of his “Private sector experience”…the same Bain Capital he credits with creating so many “jobs upon jobs” THAT unless you’re a graduate of Bain Capital Life University you cannot understand the complexity of trade and commerce – yes THAT Bain Capital was backing a Chinese company to buy an America Company and export jobs to China!
In 2005, Bain Capital provided some of the money (that’s what Bain does, PROVIDE CAPITAL) so Chinese home-appliance company Haier could BUY U.S appliance maker, Maytag.
You may have seen the Haier brand in stores. Didn’t know it’s Chinese? Well soon as Romney becomes President he will SLAP HAIER AROUND…or so he’s telling us.
Haier is a Chinese multinational consumer electronics and home appliances company, a global leader in consumer electronics. The company employs more than 70-thousand people world-wide, distributes products in more than 165 countries and regions and had global revenues of $23-billion in 2011.
China is aggressively looking to BUY or invest in assets – companies, real estate and natural resources – around the world. Haier saw buying a U.S. company as a quick and easy way to break into the U.S market. (It’s like marrying a U.S. citizen as the fastest/easiest way to work in America.)
According to a report in Bloomberg: Haier would be able to produce Maytag appliances in China at lower costs and compete with America’s Number One appliance maker Whirlpool Corp. Haier was planning to buy Iowa based Maytag so the Chinese company COULD MAKE THE APPLIANCES IN CHINA AT LOWER COSTS! You got that, Right?
Romney’s BAIN CAPITAL and another Private Equity firm, Blackstone Group, offered Haier the MONEY to buy Maytag. Yes, the same Romney who wants to haul China before the World Trade Organization for it’s shameful trade practices, HIS Bain Capital:
- Was offering a Chinese appliance maker the money to BUY a U.S. appliance maker
- So the Chinese firm could make the dishwashers and refrigerators cheaper in China
- SO THE CHINESE APPLIANCE MAKER COULD COMPETE WITH AMERICA’S NUMBER TWO APPLIANCE MAKER (after GE) WHIRLPOOL!!!
Well that did NOT happen, Bain Capital. No thanks to you or Romney! Whirlpool saw the light and BOUGHT Maytag!
Michigan-based Whirlpool had annual sales of more than 19 billion in 2011, 68-thousand employees and 66 manufacturing and technology centers around the world. Whirlpool brands include: Whirlpool, Maytag, Kitchen-Aid, Amana, Brastemp and Consul.
OK, let’s see some newspapers excerpts about that Bain/Haier deal:
June 21 (Bloomberg) — Haier Group, China’s largest refrigerator maker, and two buyout firms offered $1.28 billion for Maytag Corp., opening a bidding war for the No. 3 U.S. appliance manufacturer.
Maytag said in a statement late yesterday it will consider the $16 a share bid from closely held Haier, Bain Capital LLC and Blackstone Group LP.
June 21 (Bloomberg) – Haier’s factories in China would be able to lower Maytag’s costs and help it compete with Whirlpool, which has six factories in Asia.
“It is very difficult for Chinese appliance makers to establish a brand and sales network in the U.S.,” said a Shanghai-based analyst. “The shortcut is to buy an existing American brand. Quite a few Chinese companies may also follow this pattern.”
Haier … would be able to take advantage of its low-cost manufacturing in China in buying Maytag….China’s wages for unskilled labor are about 4 percent of the standard rate in the U.S., the Asian Development Bank said in an April report.
The company, which has 13 overseas factories, has invested at least $30 million in a factory in Camden, South Carolina, where it makes a half million refrigerators a year. Haier plans to make air-conditioners and washing machines in the U.S. in the future, according to the company’s Web site.
Bain Capital, founded by Massachusetts Governor Mitt Romney and based in Boston,has invested in more than 30 industrial and manufacturing companies since it was founded in 1984, including Alliance Laundry, a manufacturer of commercial laundry equipment.
Tribune news services | July 18, 2005: Whirlpool tops offer for buyout of Maytag.
Whirlpool Corp. announced Sunday an offer to acquire fellow appliance maker Maytag Corp. for $2.3 billion…Whirlpool said its offer of $17 per share for Maytag, which is based in Newton, Iowa, includes cash and stock and is based on assumed debt of $969 million.
Haier, partners drop bid to buy Maytag. 2005-07-20 11:08
NEW YORK – Haier Group, China’s largest appliance maker, and its two private equity partners have dropped out of the $1 billion-plus bidding race for Maytag Corp., Maytag said on Tuesday.
Haier and two private equity firms — Bain Capital and The Blackstone Group — were exploring a $16 a share bid for the company.
Then Whirlpool launched a surprise offer on Sunday for more than $1.3 billion, or $17 a share. Whirlpool, which also has the Roper and KitchenAid brands, said it would pay at least 50 percent in cash and the balance in shares.
The prospect of a Haier takeover helped stir anti-Chinese sentiment in the U.S. over Asian companies gobbling up U.S. businesses. That concern has been stoked by a bid by China oil company CNOOC Ltd. to buy California-based Unocal Corp. for $18.5 billion.
That speculation ended on Tuesday, when Haier, Bain and Blackstone submitted a formal letter to Maytag, saying that the group has decided not to pursue an offer.
Washington Post/Wednesday, July 20, 2005
Haier Group Co., China’s largest home-appliance maker and primary aspirant to becoming the country’s first global brand, has withdrawn from the bidding for Maytag Corp., according to a statement released by Maytag.
Haier, along with U.S. private equity firms Blackstone Group LP and Bain Capital LLC, had expressed interest in buying the Iowa appliance maker for about $1.3 billion.
Haier’s decision to drop out amounts to a rare sign of caution from China as its companies aggressively pursue foreign takeovers and new markets in what Beijing has termed the “go out strategy.”
Analysts saw Haier’s interests in Maytag as a…deal that would have used the venerable U.S. brand name to sell machines that could be made in the Chinese company’s existing factories.
July 18, 2005/Bloomberg News: Whirlpool Makes Unsolicited Bid for Maytag, Creating 3-Way Race
Whirlpool’s bid for Maytag comes amid recent anxiety on Capitol Hill and in executive suites about the increasing willingness of Chinese companies to flex their financial muscles in trying to acquire American firms.
The China National Offshore Oil Corporation’s $18.5 billion bid for Unocal last month, which came just two days after Haier’s bid for Maytag, has drawn the most scrutiny. Last December, I.B.M announced plans to sell its personal computing business to China’s biggest personal computer maker, Lenovo.
Asia times: Haier Group bids US$1.3bn for Maytag
With its established brand name and, especially, well-developed marketing and sales networks, the purchase of Maytag would give Haier an edge in the US market. Haier considers the US a key market and started local production in the US in 2000, producing 500,000 refrigerators a year at a South Carolina production facility.
Now what advice does Bain have for Chinese companies? (Yes, those companies Mitt Romney plans to DECIMATE when it hauls China before the World Trade Organization).
- When Fortune China and Bain & Company recently surveyed more than 600 Chinese executives across a range of industries, we found that nearly 80 percent readily conceded that they are less innovative than multinationals.
- Innovation comes in many forms. It can be a new business model, a re-invented sales force, or a transformed operating process. For one thing, Chinese companies’ capabilities and their strategic competitive positions against multinationals are well suited for generating incremental, customer-led innovations.
- When we asked them to rank their performance against a specific set of criteria, the senior managers came up short in several categories.
- Appliance maker Haier made itself a global competitor thanks to a carefully constructed innovation strategy…the company’s strategic plan included relying on imported technology innovations (from where, Bain?) to improve local products…by building this firm innovation foundation, Haier was able to aggressively enter-and win in-the global appliance market,
- Chinese companies might have some great ideas, but they often lack the talent to turn them into profitable ventures. More than half the Chinese companies surveyed said they have less than 25 people dedicated to an innovation team. This dearth of talent is a major handicap when going up against multinationals like innovation titan Procter & Gamble.
IF Bain Capital had won, today Maytag would be OWNED by China. The very same China that Bain founder Mitt Romney wants to clamp down on over unfair trade practices…
IF Whirlpool had NOT stepped in, Bain Capital and Haier would have sent those Maytag jobs to China.
IF Haier had bought Maytag, Maytag would now be a CHINESE brand.
Still believe Romney will clamp down on China…?
Still believe he cares about jobs — or just profits for HIM — and other executives like him?
Yeah – just wait!!!
“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than commonly understood. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.” John Maynard Keynes.