GM Could Export Chinese Built Cars to U.S. – Bailout Update
Tim Esterdahl | Apr 25, 2013 | Comments 16
In a rather shocking admission, GM China’s President says that they could export Chinese built cars to the U.S. market. Take that UAW and U.S. taxpayers – apparently we helped bailout Chinese built cars.
Could this Chinese-built Buick concept be exported to the U.S.? You bet. How’s the bailout feel now?
The admission came from Autoblog.com that was covering the Shanghai Motor Show, General Motors press conference. At the press conference, GM announced an aggressive plan to ramp up their presence by adding 400 dealerships in 2013 (4,200 total). It is planning on reaching 5,100 in 2015.
Production of these vehicles will remain in China, however, they estimate exporting a record 100,000 to 130,000 cars this year. Plans are set to export even more.
Autoblog naturally asked the follow-up question if this meant these cars could make their way to the U.S. GM China president Bob Socia responded with:
“It could very well happen. It could very well happen. You know, I’m not sharing any plans with you, but we try to keep open as to what makes sense. And Tim [Lee – GM’s president of international operations] is the right guy to talk about your manufacturing footprint. If it make sense to tool up a vehicle in one location as opposed to two, from an economic perspective, Tim will say that’s what we should be doing. We’re open to be doing that. There’s no reason why we can’t be exporting to the States, and obviously the States are exporting here.”
The thought would be that most of these vehicles would be Buick’s. The facts are that the Buick brand is a BIG seller in the Chinese market and a joint venture with the Chinese Automaker SAIC is creating an environment for SAIC to have more control. These factors along with new trade agreements could create this reality.
Even with Socia ending the conversation by saying that there are no current export plans, it is amazing that a U.S. bailed out company would export Chinese built cars back to the U.S. This is a huge blow for the UAW and taxpayers who were wanted the bailout money to keep/create jobs in the U.S.
With many, many GM plants sitting idle or downsized, the question is why you would import Buicks rather than build them stateside. We know the answer to that one – poor leadership (a hallmark of past GM failure).
What do you think? Are you excited about GM exporting a Chinese-built Buick to the U.S.?
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Filed Under: Auto News
Epitome:
1.A person or thing that is a perfect example of a particular quality or type: “GM, openly admitting that chinese built vehicles are likely to be sold in the U.S., is the epitome of a driving a knife in the back of ALL Americans”
The “apple pie” has been replaced with a knife.
The apple has changed to cherry. We deserve what we get. We voted for this so we got it. Now we have to deal with it.
And in a related story….Walmart to team with G.M. as a “retail outlet.” More to follow…
LOL! Tesla boutique in Target?
-Tim
What I see here is a blue light special for all customers.
LOL!
-Tim
I believe I read an article where some of the bialout money ended up in Brazil as the new colorado was designed there.
With globalization taking place this will be the last time GM is bailed out-yes, foreshadowing as the corporate culture at GM has not changed.
That thing should get their quality ratings right in line with Chrysler!
I’m not surprised. More ashamed for our country, really. The government should have let GM go into bankruptcy where they belonged, and let Fiat buy the sinking ship of Chrysler. GM execs are only interested in lining their own pockets. They have absolutely no interest in the factory floor worker who wills the design of the car into reality. With the chicken tax coming to an end I definitely see GM making this move. And they justify it by saying, “Well American built cars are imported into China, so its okay.” No Bob, its not.
As a side question, when was the last time GM built a car worth even test driving? Seems they are more rental cars than anything else. Ford is the only Detroit-based (really Dearborn) manufacturer worth looking at anymore. Outside of them? Look to Toyota, Honda, Nissan, and Hyundai.
[…] I despise GM. Not to mention we will start getting Buick's made from China. Really do we need this. http://www.tundraheadquarters.com/bl…t-cars-to-u-s/ __________________ MIDNIGHT RIDER THIS TRUCK CAN TAKE A HIT AND KEEP ON TICKIN' VOTE NOW! […]
Jason and Tim this may need to be looked into. It doesn’t sound good but from what I read I didn’t see what the headlines state.
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Mickey,
That is an interesting revelation. I have long argued that without the GM and Chrysler bailouts, Ford would have been in real trouble. This is due to the fact many of the third-party suppliers would have also gone bankrupt causing a parts shortage that would have damaged Ford to the point it would have needed help. It also doesn’t surprise me that Toyota and BMW took the money too.
The facts are that the recession was the worst since the great depression (maybe greater) and that everyone was in big trouble. It will be interesting to see the fall-out. Will the Government Motors bashing stop (probably not) and will Chrysler be let off the hook (probably not again)? Will Ford, Toyota and BMW get bashed, probably? However, the ire has probably lessened by now.
-Tim
I was kind of taken back when I read the article but I do understand the thinking of Ford, BMW, and Toyota at that time. It wasn’t a bail out but still it could be seen as a handout to those of the Big 3. Everyone ha to know that BMW is built here in South Carolina so they too have had the same issues.
Agreed. It is really just a reality in a global economy facing a dramatic downturn. While, the less informed can talk all the time about how we should have just let companies go belly up, that isn’t the big issue. The big issue is the ripple effects. You close a plant in Michigan, a third-party parts manufacture closes in Kansas, a tech firm supplying support closes in California. This is the same with big companies. You let GM go bankrupt, Ford loses parts suppliers and everybody’s car sales tank. Yes, BMW and Toyota are thought to be “foreign” companies. That is completely irrelevant to economists thought that see thousands/millions of jobs lost when they close. That would cause a ripple effect like above.
-Tim
Knowing first hand how a GM plant closed in Janesville WI after having one of the oldest plants GM had in operation and how it affected the town of ONLY 50,000 or so was devastating. NOT only to the GM workers, but also to the parts mfgs. to that plant in the area along with hundreds of non-GM involvement places like restaurants and bars, etc., etc. To see unemployment go from say 7-8% to over 12% in that short of timeframe in the area devastates the entire area, not just GM workers. No jobs means no money spent in other places in such a small community. Pretty sad GM has to even deal with China and speaking from me who worked for a subsidiary of GM, all the execs and big shots think of is their bottom dollar and how much of a bonus they make come December is all. Way too many big wigs doing zilch and not enough hard workers making a decent living. Haven’t bought a GM since 2007 and after the bailout don’t plan on to and this is coming from a GM guy since forever buying dozens of new GM cars, mostly chevy, since early 1990’s.
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