GM aims to bring in a new range of small vehicles into the US and plans to have these made in China!
Though not technically a “Chinese car” as in produced by a Chinese marque, it is still the first time a volume car produced in China will be sold in the US.
Will the American consumer be able to accept that these set of cars will be made in China? It’s not a lot though, GM expects these Chinese-made models to only account for 1.6% (just over 50,000 units) of American GM sales in 2014.
The same GM document that details plans to bring in cars from China also reveals plan to increase production in Mexico from over 300,000 to over 500,000 and South Korea from just under 40,000 to nearly 160,000 by the year 2014. In turn, Canadian production will be cut.
Of course their UAW union is kicking up a fuss all over again, accusing GM of using taxpayer money to fund manufacturing outsourcing to other countries. Business is business and if the UAW cannot make cars at a cost that is competitive enough with the world, then this is just what GM has to do in order to improve profitability.
The American UAW and their colossal benefits schemes simply cannot compete with the lower labour costs of other countries.
After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.
With all of these unions around and the US labour pay, no wonder US is shifting overseas to cut cost. Mexico is the nearest however with swine flu around, i dare not even step into mexico anytime soon.
UAW is the root off most of all the American automotive headache.
I remember my thesis very well. "I told you so" is a very approprite phrase to use.
Well, slowly GM will move its manufacturing from US to cheaper countries in order to stay viable. I don't see anyway back from this trend.
Will the American consumer be able to accept that these set of cars will be made in China?
Actually American consumer are the largest consumer buying made in china goods. Look at the Walmart who is the largest importer of made in china product. Many of us may not aware that Celcom, Digi 3G equipment is supply by China Huawei. P1 Wimax also use China ZTE product. They are the major player for the 3G and coming 4G globally. Company like Lenovo which selling their product globally will built the new China image in world stage.
Foxconn base in China which had more than 600,000 worker in china alone is making every high tech product in china from handphone, to playstation etc
for nokia, motorala, sony, etc. Even BYD which had more than 100,000 worker in china also supply battery , handphone to nokia, motorola, etc.
There are not merely assembly, but built all product from scrath.
Some of the malaysian may npt aware, but the fact is that Made In China product had ruled the world market.
thats why the benefits and unions are one of the contributing factor to the downfall of the big three.
seriously, these guys need to open their eyes. outsourcing is the new trend now.
DEAL WITH IT.