Step Back and Look At Yellow as a Business
I want to know what business we had buying a trucking company in China for 400 million cash, when we are in the shape we're in right now?
How many companies in this country have left the US and opened businesses in other countries? This article tells you what Yellows plans are.
YRC Worldwide acquires Shanghai Jiayu Logistics
YRC Worldwide, a provider of less-than-truckload transportation services, has announced that its wholly owned subsidiary YRC Logistics has successfully closed its acquisition of Shanghai Jiayu Logistics, a provider of truckload and less-than-truckload ground transportation services in China.
With over 30,000 customers, 1,800 employees, 200 locations and a network of more than 3,000 vehicles, Jiayu is expected to provide an ideal platform for YRC Worldwide to support the needs of both local Chinese customers and large multinational companies with transportation requirements in China.
YRC Logistics acquired 65% of the stock of Jiayu for $44.7 million. YRC Logistics expects to purchase the remaining 35% interest in 2010, for an amount not to exceed $39 million, as determined by the level of Jiayu's 2008-09 financial performance.
Datamonitor - YRC Worldwide acquires Shanghai Jiayu Logistics - News
They own 65% of Shanghi Jiayu as of Aug08. (Look what our stock has done since Aug 08) They plan on purchasing the other 35% in 2010. Would it make sense to have a business in the US eating up the profit after going to the trouble of relocating to China? If they can gather up all the trucking companies that are union and close them or at least make them less of expense,(i.e.concessions) then come back and open up a (non union) or a more profitable union company (i.e. concessions)to work hand in hand with their company in China, they've made a good BUSINESS choice. Businesses have to make choices that are good for Business. Period.
Not only that,but look into the back ground of the people Yellow has recently hired.What companies have they come from and how will yellow use them as an asset.in China.and the US.
Yellow is going to move ahead with or without you. Nothing personal, just cold hard business. Just IMHO.