GM and China
#2
03-02-2007, 01:53 AM
RE: GM and China
They'll never mass produce them there. Just more and more parts will come from china. Pretty soon it'll be like over half chinese parts, but assembled in the USA... err .. DOH! I mean Canada.
GO FTC! WAHOO NAFTA!
GO FTC! WAHOO NAFTA!
#3
03-02-2007, 03:36 PM
RE: GM and China
I wouldn't bet on GM not producing cars in China.
The bottom line rules as far as they're concerned. If they can figure a way to make the cars over there for $2,500 and sell them here for $25,000 they'll do it.
(GM can ship cars into this country without wheels/tires and get away from paying import taxes on them)
Has anyone else heard Hersey's (chocolate) is moving to Mexico?
Last $0.10 they get from me.
The bottom line rules as far as they're concerned. If they can figure a way to make the cars over there for $2,500 and sell them here for $25,000 they'll do it.
(GM can ship cars into this country without wheels/tires and get away from paying import taxes on them)
Has anyone else heard Hersey's (chocolate) is moving to Mexico?
Last $0.10 they get from me.
#5
03-15-2007, 01:26 AM
RE: GM and China
Ewww Mexican chocolate. =P
I can see cars being made there, but they would also stay there. The shipping cost is too high. Thats one of the reasons Honda and Toyoda have plants here.... that and the government refused to let them sell cars here otherwise.
I can see cars being made there, but they would also stay there. The shipping cost is too high. Thats one of the reasons Honda and Toyoda have plants here.... that and the government refused to let them sell cars here otherwise.
#8
03-15-2007, 02:58 PM
RE: GM and China
The brightest star in GM's constellation is not`Space : )[/align]South Korea's Daewoo brings GM into the subcompact market, cementing a very successful partnership. [/align]
[/align]By Sheridan Prasso, Fortune & Not SpaceRider[/align]October 9 2006: 9:17 AM EDT[/align](Fortune Magazine) -- With all the bad news coming out of Detroit in recent years, here's one bright star in an otherwise dark sky: South Korea.
Since General Motors (Charts) bought the Korean automaker Daewoo (the name means "great universe") out of bankruptcy four years ago for $1.2 billion, it has embarked upon an incredible transformation. Today GM-Daewoo is actually making money. It helped generate $831 million in profits for GM Asia-Pacific, on sales of $8 billion in the first half of this year, up from a net loss of $535 million on $3.6 billion sales for the same period last year.
The division has quadrupled production and sales of the small cars it makes to 1.6 million this year, and it has won, within GM, the exclusive right to develop all next-generation subcompact cars for the entire world - one, currently on sale in the U.S., is the Chevy Aveo - drawing a $3.2 billion investment from headquarters in upgrades, R&D and new plants.
Daewoo's success has allowed GM to enter the subcompact market in 150 countries where it previously had no product to offer, boosting sales in Latin America, Asia and Europe, where appetites for small cars are high. And Daewoo's platform used in small Chevys and Buicks has helped propel GM into the No. 1 market position in China.
The secret of their success[/align]How did this happen at a company that collapsed under $17 billion of debt in 1999 at the height of the Asian financial crisis, after having embarked under its megalomaniacal founder, Kim Woo Choong, on an ill-conceived global push into African and other underdeveloped markets? And under the umbrella of new management in Detroit that managed to lose $10.6 billion last year?
GM's head of operations in Korea in 2002, Nick Reilly, who was promoted in July to oversee GM's Asia-Pacific division, made a series of shrewd moves when he took up his post in Seoul. First GM, having had a previous tie-up with Daewoo fail in the 1980s, cherry-picked only the Daewoo factories it wanted. Then Reilly got unions to accept lower wages for a time, promising to rehire 1,725 laid-off Daewoo workers as soon as he could - even older and more expensive employees - and finally rehired everyone who wanted his job back as of last year, a total of 1,609 workers.
"As a consequence," says Reilly, "we've had a very good labor-relations climate. We've been through four wage negotiations now and have had almost no industrial action, as opposed to what the past had been and what our competitors still have."
Reilly also started exporting "kits" of subcompacts to countries with high duties on assembled cars, such as China, India, Thailand and parts of Latin America, where they could be put together more cheaply at GM plants.
[b]Then he gave a vote of confidence to Daewoo's engineering team, which Reilly says was underestimated by the company's Korean owners. Talent was just waiting to be tapped, he says. He took their platforms and designs around the world an
#10
03-15-2007, 03:20 PM
RE: GM and China
My sister lives near Hershey,PA and she said the chocolate company moving jobs to Mexico is the big news there.They plan to eliminate 2000 jobs eventually.Hershey is making some chocolate in Mexico now,they have been for years.My wife bought the large hershey kisses AT CHOCOLATE WORLD in hershey several years ago,and after we got home we saw "made in Mexico" on the boxes.