Wednesday, June 12, 2013

Another U.S. company hits the skids

CNBC: "India's Apollo Tyres to buy Cooper Tire for $2.5 billion."

Here's what the car experts at The Truth About Cars have to say about that: "Weakened by Obama's union coddling, Cooper Tires is sold to the Indians."


Anonymous said...

Dissonance reduction makes you feel better, but it won't help you understand anything:

Cooper's profits were up, MFG costs were down, and those damn foreigners offered a 42% premium over the market price. There was no way they would turn down that offer. The shareholders seemed less than concerned about this blow to American manufacturing.

Eric said...

I thought Obama was going to stop the profit incentives to ship American jobs overseas.

Anonymous said...

Wait - this is about Obama's coddling unions or something else?

Why are you assuming jobs are being shipped overseas?

The buyer has factories in places where Cooper doesn't and vice versa. It sounds like a standard expansion move. This is a 43% windfall for the shareholders. The BOD would have been sued if they turned this offer down.

Did you research this before you got all fired up? Or were you already fired up and just got totally stoked when you saw the baseless string of words on TTAC?

The Web is awesome. No matter what you believe it provides the means to 'prove' it.