Monday, May 25, 2009

What the Heck?

SHANGHAI (AP) May 13, 2009-- General Motors Corp. plans to begin exports of vehicles made in China to the United States within two years, ramping up sales to more than 50,000 by 2014, reports said Wednesday.

A spokeswoman for GM in China did not immediately respond to a request for comment on the reports, which were said to be based on a company recovery plan given to U.S. lawmakers.

GM intends to sell 17,335 made-in-China passenger cars in the U.S. market by 2011, the Shanghai Securities News and other reports said. By 2014 exports would triple to more than 51,000, it said.
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So let me get this straight - in order to cut costs General Motors is going to China to build cars that GM will ship at major expense back to the U.S. for sale at higher prices then its competitors who build cars in the U.S. (Ford, Toyota, Honda, etc.) with GM not even entertaining the idea that perhaps they shouldn't go to China for workers but pay their workers here less so that they don't price themselves out of the competitive auto industry which they are going to do anyway by moving to China and having the extra expenses involved with moving finished products - automobiles - back to the U.S.
And this is how they are going to save themselves? Or perhaps our tax dollars will again go to subsidizing stupidity?
There is a term that refers to building a product in a location that you plan on selling it to cut down on the huge expense of moving the product across oceans and/or continents. It is why Toyota builds cars here in the U.S. and why Coca Cola is manufactured worldwide. It is called smart business practices.

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