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If this happens, GM is not worth saving.

Old May 15, 2009 | 12:23 PM
  #1  
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If this happens, GM is not worth saving.

http://www.wilx.com/news/headlines/45059772.html

"Reports out of Washington say GM is considering manufacturing more cars abroad, then importing them for sale in the US. It could save money by taking the American worker out of the equation. "
Old May 15, 2009 | 12:26 PM
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This is nothing more than a continuation and/or acceleration of what's been going on for years.

How many cars from GM are imported right now? Canada... Mexico... Australia... just add China to the list.

Old May 15, 2009 | 12:33 PM
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There's a few threads already on this. There was a story late yesterday in which Fritz said it made more sense to build cars where you sell them and if the UAW was willing to make more concessions then GM might be able to build more cars here.

Think its all posturing to try to make the best deals possible for GM moving forward. I would wait until all is said and done before determining just how many vehicles will be build in North America, and how many will be imported.
Old May 15, 2009 | 01:13 PM
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Originally Posted by jg95z28
There's a few threads already on this.
Links are nice. Like this:

https://www.camaroz28.com/forums/sho...d.php?t=686968

Related rant: WILX (the NBC affiliate whose site is listed above, and who happens to be my local NBC affiliate) sucks for news. They don't do any research or report on any expert opinions -- they just gloss over whatever their source told them in a sentence or two, and then interview locals and ask what they think.
Old May 15, 2009 | 02:11 PM
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How else is GM supposed to cut costs? They can't charge more for their cars made by American workers, almost no one would pay more for that. No matter what others would claim, when it comes right down to it, people won't put their money on the line.
Old May 15, 2009 | 02:28 PM
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This is a non story.

http://www.detnews.com/article/20090...+China+in+2011

GM imports would go from 33% in the US to 34% by 2014. 50k cars from China in 2014. Why is this news?
Old May 15, 2009 | 02:48 PM
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Originally Posted by Plague
Why is this news?
Because anytime an American auto manufacturer (particularly one that is currently operating thanks to the U.S. taxpayers) decides to start importing cars built in China to sell here, it is and rightfully should be news. It may be a small number, but GM has not done this until now.
Old May 15, 2009 | 02:54 PM
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The ironic thing is though, people will say "I'm not buying a GM car because it is imported" and then go out and buy another imported car.
Old May 15, 2009 | 03:04 PM
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Originally Posted by Z28x
The ironic thing is though, people will say "I'm not buying a GM car because it is imported" and then go out and buy another imported car.
Well you have "domestics" being built internationally and international brands being built locally. Take your pick.
Old May 15, 2009 | 03:25 PM
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Originally Posted by number77
Well you have "domestics" being built internationally and international brands being built locally. Take your pick.
Just goes to show how complicated the industry is today. "Outsourcing" is critical to survival in the industry today. If GM plans on avoiding it completely, GM won't be around in the future. It is precisely this issue that has me worried about the UAW having a substantial interest (or controlling interest in the case of Chrysler) in managing the company. UAW will dig its head in the sand and say "no way." The company will come crashing down around them and they wont be able to do anything about it.
Old May 15, 2009 | 04:09 PM
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Originally Posted by Z28Wilson
Because anytime an American auto manufacturer (particularly one that is currently operating thanks to the U.S. taxpayers) decides to start importing cars built in China to sell here, it is and rightfully should be news. It may be a small number, but GM has not done this until now.
An import is an import. GM has been importing cars for a while. Why does China make the difference? Like I said, 33% of the cars GM sales in the US are imported. Are we going to care if in the next 5 years that number goes to 34% and China is on the list of where it came from? I am actually surprised that this didn't happen sooner.
Old May 15, 2009 | 04:22 PM
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Originally Posted by Plague
Why does China make the difference?
Because by their own federal law, China doesn't import any manufactured goods. Everything used in China is manufactured in China. It's uneven, and therefore unfair.
Old May 15, 2009 | 04:26 PM
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I don't believe it will end with 34%. Just keep telling yourself it will stop there. As it said in the article "It could save money by taking the American worker out of the equation". Why stop at 34%?

I bought a 2007 Honda Odyssey that was assembled in the US. 75% of it was manufactured here. It is funny (sad) that you have to buy a foreign car to get one built in the US as someone else said.

I agree that this is a global economy. More that 50% of GM sales are foreign sales. That means more than 50% of GM's business relies on someone buying a foreign car.

My point is this. We the TAXPAYER are pumping billions of dollars into GM to keep them alive in order to help keep main street America employed. This sure as hell is not what is happening.

Last edited by embpic; May 15, 2009 at 04:29 PM.
Old May 15, 2009 | 04:28 PM
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Originally Posted by JakeRobb
Because by their own federal law, China doesn't import any manufactured goods. Everything used in China is manufactured in China. It's uneven, and therefore unfair.
I fly international freight for a living. I fly into and out of Hong Kong a few times a month. My airplane is always empty flying in and packed to the gills on the way out.
Old May 15, 2009 | 04:31 PM
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Originally Posted by Plague
An import is an import. GM has been importing cars for a while. Why does China make the difference? Like I said, 33% of the cars GM sales in the US are imported. Are we going to care if in the next 5 years that number goes to 34% and China is on the list of where it came from? I am actually surprised that this didn't happen sooner.
It's because right now, selling out to China is passé. It's one thing for your neighbor to go out and buy a Toyota or Volkswagen...But for your favorite Red White and Blue car company to start sliding revenue to the biggest automotive ripoff artists in the world who are also one of the largest threats to our economy...that's when things get touchy.

Prejudices run deep, and they vary from political, geographical, racial, stylistic, and more. I see a lot of America's wealth going to China and it makes me very uneasy. Other countries like Canada, Australia, Mexico--we're partners in crime, really, blokes all after the same cause and none of them are really gunning to become a world super-power like China.

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