GM plans to export China-made cars to U.S.
05-12-2009, 03:48 PM
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GM plans to export China-made cars to U.S.
GM plans to export China-made cars to U.S.
LINK: http://www.autonews.com/article/2009...905119971/1131
LINK: http://www.autonews.com/article/2009...905119971/1131
05-12-2009, 04:07 PM
#3
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Sorry. I don't have a subscription either! 
WASHINGTON -- General Motors plans to sell cars in the United States that it makes in China, starting in 2011. That could make GM the first major automaker to import Chinese cars to the U.S. market.
The car maker expects to sell about 17,335 of the China-made vehicles in the United States in 2011, and triple that number to 51,546 in 2014, a planning document circulated by GM among U.S. lawmakers shows. The gains would come, the document says, as GM's total U.S. sales surge 50 percent in the next five years.
The plans are subject to change pending the outcome of negotiations with the UAW.
Many of these vehicles are likely to be small cars similar to the upcoming Chevy Spark, which will be built in South Korea, though the models will be different from any currently built in the United States by any automaker, an industry official said in an interview.
Even at the higher 2014 level, though, cars from China would still account for only 1.6 percent of GM's 3.1 million total expected sales in the U.S. that year, the 12-page document says.
The automaker is trying to meet a government-imposed June 1 deadline to restructure operations and cut over $40 billion in debt, or risk bankruptcy. The UAW has criticized GM's restructuring plan because of increases envisioned by the plan in U.S. sales of cars made overseas.
"We are in dialogue with the UAW, and my view of a dialogue is that it is a good idea to have an open book on all the different subjects," GM CEO Fritz Henderson said in a media conference call today. "We have a philosophy of building where we sell, and not only do we think that is the right thing to do, but the most profitable thing to do historically."
UAW officials did not immediately respond to requests for comment.
In a May 5 letter to senators, the UAW criticized GM plans to increase U.S. sales from other countries.
"GM should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries," the letter from UAW legislative director Alan Reuther said.
The GM document also reveals plans to sharply increase sales of cars it makes in Mexico and South Korea while reducing the number made in Canada.
Mexico-made vehicles sold in the United States would jump from 317,763 in 2010 to 501,316 in 2014, according to the document.South Korea-made vehicles sold in the United States would more than quadruple from 36,967 in 2010 to 157,126 in 2014. On the other hand, Canada-made vehicles would fall from 431,708 in 2010 to 330,610 in 2014.
GM's U.S.-made vehicles would hold steady during the five-year period at about two-thirds of the total sold domestically.
The car maker expects to sell about 17,335 of the China-made vehicles in the United States in 2011, and triple that number to 51,546 in 2014, a planning document circulated by GM among U.S. lawmakers shows. The gains would come, the document says, as GM's total U.S. sales surge 50 percent in the next five years.
The plans are subject to change pending the outcome of negotiations with the UAW.
Many of these vehicles are likely to be small cars similar to the upcoming Chevy Spark, which will be built in South Korea, though the models will be different from any currently built in the United States by any automaker, an industry official said in an interview.
Even at the higher 2014 level, though, cars from China would still account for only 1.6 percent of GM's 3.1 million total expected sales in the U.S. that year, the 12-page document says.
The automaker is trying to meet a government-imposed June 1 deadline to restructure operations and cut over $40 billion in debt, or risk bankruptcy. The UAW has criticized GM's restructuring plan because of increases envisioned by the plan in U.S. sales of cars made overseas.
"We are in dialogue with the UAW, and my view of a dialogue is that it is a good idea to have an open book on all the different subjects," GM CEO Fritz Henderson said in a media conference call today. "We have a philosophy of building where we sell, and not only do we think that is the right thing to do, but the most profitable thing to do historically."
UAW officials did not immediately respond to requests for comment.
In a May 5 letter to senators, the UAW criticized GM plans to increase U.S. sales from other countries.
"GM should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries," the letter from UAW legislative director Alan Reuther said.
The GM document also reveals plans to sharply increase sales of cars it makes in Mexico and South Korea while reducing the number made in Canada.
Mexico-made vehicles sold in the United States would jump from 317,763 in 2010 to 501,316 in 2014, according to the document.South Korea-made vehicles sold in the United States would more than quadruple from 36,967 in 2010 to 157,126 in 2014. On the other hand, Canada-made vehicles would fall from 431,708 in 2010 to 330,610 in 2014.
GM's U.S.-made vehicles would hold steady during the five-year period at about two-thirds of the total sold domestically.
05-12-2009, 04:11 PM
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GM also expects to increase imports to the US from Korea from the current 37K to 157K by 2014.
Finally, GM expects to increase production of Mexican made US cars from 317K to 501K, also by 2014.
According to Fritz Henderson, no federal backed loans will go to funding any of this (though engineering or design work for some of these vehicles made elsewhere will undoubtedly be done here... covered by taxpayer money).
Here's a link.
http://www.detnews.com/article/20090...+China+in+2011
05-12-2009, 04:50 PM
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GM is placing a big bet that the US dollar will be strong in 5 years, that is a bet I wouldn't take.
The Chinese currency is artificially under valued to help exports, once it goes free floating GM China's cost are going to go through the roof. At the same time, the Federal Reserve is running the printing presses at full speed, it is only a matter of time before we see a weaker dollar against foreign currencies.
The Chinese currency is artificially under valued to help exports, once it goes free floating GM China's cost are going to go through the roof. At the same time, the Federal Reserve is running the printing presses at full speed, it is only a matter of time before we see a weaker dollar against foreign currencies.
05-12-2009, 05:06 PM
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This will be nothing be ammo for people who think GM's quality sucks.
This reads like someone smoking a crack pipe-
This reads like someone smoking a crack pipe-
The gains would come, the document says, as GM's total U.S. sales surge 50 percent in the next five years.
05-12-2009, 05:09 PM
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If the U.S. keeps printing money to support its budget it won't matter where a vehicle is made because no one will be able to afford to buy one at all - we'll see inflation rates so large that we'll all be wishing for the good old days of the late 70's when the inflation rate was only in the low 20% per year range.
Last edited by Route66Wanderer; 05-12-2009 at 05:13 PM.
05-12-2009, 05:13 PM
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I can understand GM's business decision to go this route.
But, I do wonder if, when all this is over, those who insisted that the government had to step in and save GM will be happy with the GM they get.
But, I do wonder if, when all this is over, those who insisted that the government had to step in and save GM will be happy with the GM they get.
05-12-2009, 07:21 PM
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For cars under say $20,000, I dont think we'll ever see a GOOD one built here at home again. We cost too much to pay and insure. I guess I look at it like would you rather have GM import cars or China/Korea/Japan import cars and pay no taxes/employ no Americans.
05-12-2009, 07:44 PM
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Once the dust settles though, it's still a free country. Americans aren't going to fall all over themselves to buy small cheap cars (remember the Yugo? No?). The marketplace will have the final say on the whole circus.
05-12-2009, 07:54 PM
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If the U.S. keeps printing money to support its budget it won't matter where a vehicle is made because no one will be able to afford to buy one at all - we'll see inflation rates so large that we'll all be wishing for the good old days of the late 70's when the inflation rate was only in the low 20% per year range.
Last edited by Z28x; 05-12-2009 at 07:57 PM.
05-12-2009, 08:29 PM
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I agree with you about mexico, its even a smaller global carbon footprint. But why build a product on our content when their content is going to be the main consumer of that good. Korea or China will be producing the american small cars, its a done deal. Canada and Mexico will make the NA product lines with a few plants left in Michigan and Texas for good PR.
I try to buy American as much as possible, but I've been noticing lately that there aren't even American alternatives in some categories. Last month it was Angle granders, we'll see what this month holds. Also, I've been Jeep shopping, built in Toledo, you would think nothing is more American, its on got a 57% rating. Sad.
I try to buy American as much as possible, but I've been noticing lately that there aren't even American alternatives in some categories. Last month it was Angle granders, we'll see what this month holds. Also, I've been Jeep shopping, built in Toledo, you would think nothing is more American, its on got a 57% rating. Sad.