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.