Caterpillar writes off most of China deal after fraud

Comments (16)
Sylmar wrote:

Should have stuck with your American workers!

Jan 18, 2013 7:43pm EST  --  Report as abuse
ConradU812 wrote:

Let’ see, China manipulates currency, conducts non-stop computer attacks on our industries and government, seizes land from Japan, now this?

Oh, and Sylmar? It makes you wonder how many billions Cat would’ve actually SAVED by keeping it’s production stateside, doesn’t it? Darn, there goes all that profit….

Jan 18, 2013 9:05pm EST  --  Report as abuse
WJL wrote:

Years ago, chinese suppliers lost billions when American importers defaulted on their payments and American media gloated.

You got to say that the chinese are fast learners.

Jan 18, 2013 9:39pm EST  --  Report as abuse
ConradU812 wrote:

Sorry guys, I didn’t intentionally spam. Something caused multiple posts…lag maybe?

Jan 18, 2013 9:43pm EST  --  Report as abuse
IraHayes wrote:

A Company that has been so ridiculed for putting out a loved American product….They can no longer meet the standards of the environmentalists…. Legislating with bath robes on!!!

Jan 18, 2013 10:52pm EST  --  Report as abuse
Abulafiah wrote:

Caterpillar have learned the hard way what just about anybody in SEA could have told them.

Jan 18, 2013 11:14pm EST  --  Report as abuse
sjfella wrote:

When you deal with the Devil you’re gonna get burned.

Jan 19, 2013 12:04am EST  --  Report as abuse
seymourfrogs wrote:

Here we go. I’ve watched China for twenty years now. I was as innocent as everyone else. Part of a group, we looked for GOOD companies to invest in. Not dicey ones. ‘Honest’, know what I mean?

In 2010, we checked many companies and of a clutch of ‘good’ ones, more than 25 proved dishonest. Various ways.

Never again.

I spoke separately to an HSBC manager. Told me: No-one can export more than (I think) 30K yuan per year. So Factory owners use the identities of their staff to send money out.

Never again.

Latest fool. Jaguar cars. Just getting good again by a combination of management, workforce and major investment by Ford (who sold out too early). What do they do? Build a factory in the “growing market of China”. Bye-bye Jaguar.

Jan 19, 2013 2:10am EST  --  Report as abuse
seymourfrogs wrote:

Here we go. I’ve watched China for twenty years now. I was as innocent as everyone else. Part of a group, we looked for GOOD companies to invest in. Not dicey ones. ‘Honest’, know what I mean?

In 2010, we checked many companies and of a clutch of ‘good’ ones, more than 25 proved dishonest. Various ways.

Never again.

I spoke separately to an HSBC manager. Told me: No-one can export more than (I think) 30K yuan per year. So Factory owners use the identities of their staff to send money out.

Never again.

Latest fool. Jaguar cars. Just getting good again by a combination of management, workforce and major investment by Ford (who sold out too early). What do they do? Build a factory in the “growing market of China”. Bye-bye Jaguar.

Jan 19, 2013 2:10am EST  --  Report as abuse
trumanj wrote:

Looks good on CAT. Especially after closing down a plant in Ontario not too long ago. Just goes to show; what goes around comes around. Hopefully this will continue to happen to CAT.

Jan 19, 2013 7:03am EST  --  Report as abuse
pavoter1946 wrote:

The Board was distracted? Wow, can you imagine an assembly line worker getting away with an excuse like that?

Will Ed Rapp suffer any consequences? Probably not, since executives never get held accountable. Besides, it is only a $580 million dollar write off, saving them taxes they would otherwise have to pay. Heck, they might even get a refund from the Federal government.

Jan 19, 2013 10:46am EST  --  Report as abuse
Bel47 wrote:

Got you!

Jan 19, 2013 10:47am EST  --  Report as abuse
StigTW wrote:

I suppose they wanted ERA so bad they didn’t do due diligence on the subsidiaries.

Jan 19, 2013 1:34pm EST  --  Report as abuse
SteveC wrote:

The sad thing is that building the big ticket items like bulldozers and commercial jets were supposed to be the justification for globalizing the labor force: Let them do the sh** work, we’ll do the high end stuff with the high wages. That was before the executives of these companies figured out how to scam all the cream out of all those “high end jobs”, essentially by outsourcing them as well, pocketing the difference and justifying it by putting even more profits in the hands of those deserving it more, the 0.1%, the big stockholders in these companies.
Accessing the cheap labor of emerging world economies is the new colonialism, easier than going in and occupying the countries. Like all expansionist adventures, it will backfire, and it is the lowest end of the food chain that pays the price: the American workers.

Jan 21, 2013 2:29pm EST  --  Report as abuse
RailBended wrote:

its funny how companies move operations overseas to save money; and now they are getting taken advantage of..

what goes around comes around.

Jan 23, 2013 1:04pm EST  --  Report as abuse
Doc62 wrote:

Serves Caterpillar right!. Like so many ‘venerable” American companies, they have “sold us out” to increase corporate profits. China has very different laws and lawyers go to jail for speaking up.
You no likey? So Solly Charlie! Company who keep money in underwear get finances all balled up!

Jan 25, 2013 9:18am EST  --  Report as abuse
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