GM to sell Chinese-built car in the United States for first time
12-09-2015, 10:24 AM
#1
Administrator
Thread Starter
GM to sell Chinese-built car in the United States for first time
http://money.cnn.com/2015/12/09/auto...car/index.html
Built in China, sold in the U.S.: It's a first for GM and any U.S. automaker.
GM said it will sell the Chinese-built Buick Envision, a crossover SUV, in the U.S. market starting next year.
The UAW attacked the plan, saying it was "a slap in the face." It said GM should reconsider its plans and instead build a version for the U.S. market at a U.S. plant.
"The men and women of GM and the American taxpayers who invested so much in GM's future deserve better," said the union.
GM agreed in its latest labor deal to invest $8.3 billion in its U.S. plants over the next four years to create or retain an estimated 3,300 jobs. It increased U.S. employment by 14,000, or 18%, between the end of 2009 and the end of last year.
GM already has big operations in China, and sells more cars there than in the United States. Since 2011 it has exported about 157,000 cars from its U.S. plants to China. Buick has been a very successful brand in China.
Automakers prefer to build cars close to where they're sold. Even Asian automakers such at Toyota (TM) and Honda (HMC) build most of the cars they sell in the United States at their U.S. plants. But critics of U.S.-China trade policy are concerned that China, with lower labor costs, could steal share in the U.S.
GM says the Envision was designed in Michigan. It says it will fit well into the Buick lineup between two other crossover offerings, the Encore and the Enclave.
Auto research firm IHS forecasts estimates that GM will be selling about 38,000 Envisions in the U.S. by 2017, compared to about 126,000 it is now selling annually in China.
IHS analyst Stephanie Brinley does not expect a flood of Chinese car exports to the U.S.
"It's not going to be viewed by buyers as a Chinese vehicle," she said. "Most people don't even know where the cars come from. I don't think this means U.S. consumers will be more inclined to accept a Chinese automaker."
The only other Chinese built car sold here is the Volvo S60 Inscription, which went on sale at U.S. dealers in September.
Volvo was originally a Swedish automaker now owned by Chinese automaker Geely. It just announced plans for its first U.S. plant earlier this year.
GM said it will sell the Chinese-built Buick Envision, a crossover SUV, in the U.S. market starting next year.
The UAW attacked the plan, saying it was "a slap in the face." It said GM should reconsider its plans and instead build a version for the U.S. market at a U.S. plant.
"The men and women of GM and the American taxpayers who invested so much in GM's future deserve better," said the union.
GM agreed in its latest labor deal to invest $8.3 billion in its U.S. plants over the next four years to create or retain an estimated 3,300 jobs. It increased U.S. employment by 14,000, or 18%, between the end of 2009 and the end of last year.
GM already has big operations in China, and sells more cars there than in the United States. Since 2011 it has exported about 157,000 cars from its U.S. plants to China. Buick has been a very successful brand in China.
Automakers prefer to build cars close to where they're sold. Even Asian automakers such at Toyota (TM) and Honda (HMC) build most of the cars they sell in the United States at their U.S. plants. But critics of U.S.-China trade policy are concerned that China, with lower labor costs, could steal share in the U.S.
GM says the Envision was designed in Michigan. It says it will fit well into the Buick lineup between two other crossover offerings, the Encore and the Enclave.
Auto research firm IHS forecasts estimates that GM will be selling about 38,000 Envisions in the U.S. by 2017, compared to about 126,000 it is now selling annually in China.
IHS analyst Stephanie Brinley does not expect a flood of Chinese car exports to the U.S.
"It's not going to be viewed by buyers as a Chinese vehicle," she said. "Most people don't even know where the cars come from. I don't think this means U.S. consumers will be more inclined to accept a Chinese automaker."
The only other Chinese built car sold here is the Volvo S60 Inscription, which went on sale at U.S. dealers in September.
Volvo was originally a Swedish automaker now owned by Chinese automaker Geely. It just announced plans for its first U.S. plant earlier this year.
12-09-2015, 01:57 PM
#3
Senior Member
Wow, how disgusting is this. Shame on you GM. Next time they go down, we need to just let them fall. Other strong US companies will pick up the pieces.
12-09-2015, 06:23 PM
#4
Super Moderator
Most car buyers won't even know. In 2 years, they'll wonder why they have so many recalls and problems. Then they'll tell all of their friends about how crappy American cars are and that next time, they're buying an import. I really hope this thing is a colossal failure.
12-10-2015, 07:54 PM
#5
Super Moderator
Well, I mean Chinese companies can make decent cars. Just every few years you have to replace every part that has fuel going in it, and everything that rotates or slides against another part. No big deal really. 
I do find the irony delicious though. The UAW's outrageous labor costs drove GM to this, and now the UAW protests the logical outcome of their own piss-in-the-pot contract dealmaking. Suck it, UAW.
I do find the irony delicious though. The UAW's outrageous labor costs drove GM to this, and now the UAW protests the logical outcome of their own piss-in-the-pot contract dealmaking. Suck it, UAW.
12-10-2015, 08:07 PM
#6
Super Moderator
As much as I'm sure you wish that were true, it's not. Buick is the #1 selling import in China. China basically told GM that if they want to sell more cars there, they would need to build them there. GM decided in order to make that a feasible business decision, they'd have to sell those cars here as well. That's the ONLY reason.
GM likes the UAW. They b*tch during contract talks, but they always re-sign because the UAW guys work harder and produce better cars. If American car makers didn't like the UAW, they'd just let the contract lapse. Unions don't have enforcers that break people's knees any more.
12-11-2015, 06:13 AM
#7
Moderator
No, they've just gone to white collar intimidation. Now, they've got politicians in their pockets and have representatives entrenched everywhere in the marketplace to ensure they get contracts and higher wages. I deal with them at work and I'm sure it's the same where you work. You can't work in certain places unless you join a union, and contractors can't get awarded work unless they too are union. It's a conspiracy.
Unions were very necessary before the labor laws kicked in, but now they are just there to fill certain individual's pockets. They are an archaic institution that needs to go away.
Unions were very necessary before the labor laws kicked in, but now they are just there to fill certain individual's pockets. They are an archaic institution that needs to go away.
12-11-2015, 11:02 PM
#8
Super Moderator
Most of K Street works for non-union corporations. Politicians have their hands out to everyone who's willing to pay. Money is speech now so it's the only thing that's "heard". I'm not gonna make this a union debate. The point is, GM's decision has nothing to do with the UAW. It's about China manipulating their markets to favor domestic production. Something the US should do if China is going to do it.
12-14-2015, 03:34 PM
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No, they've just gone to white collar intimidation. Now, they've got politicians in their pockets and have representatives entrenched everywhere in the marketplace to ensure they get contracts and higher wages. I deal with them at work and I'm sure it's the same where you work. You can't work in certain places unless you join a union, and contractors can't get awarded work unless they too are union. It's a conspiracy.
Unions were very necessary before the labor laws kicked in, but now they are just there to fill certain individual's pockets. They are an archaic institution that needs to go away.
Unions were very necessary before the labor laws kicked in, but now they are just there to fill certain individual's pockets. They are an archaic institution that needs to go away.
Sure, unions have their problems. I assure you that big corporations don't lose sleep over anything except their bottom dollar. If they could pay you minimum wage to do a skilled job they would.
I grew up in and around the timber industry and most of the people I grew up with are still in it. Nobody an any of the sawmills union or non-union is making UAW wages. When I worked in a IAW union sawmill the wages (15 years ago) capped out at $20/hour for the highest paid positions (millwright, saw operator, etc.) and the typical worker was making between $11.50 and $13 per hour. It wasn't impossible to fire people. There were procedures but anyone deserving to be fired was fired without repercussions. We did get a week of vacation time which very slowly grew to a potential maximum of 3 weeks. We did have health care. We actually took a pay cut in exchange for keeping the health care due to the rising costs of insurance.
In a few of the union mills the management convinced the workers to vote out the union using arguments similar to yours. Working conditions in those mills deteriorated considerably in all cases that I'm aware of. Wages dropped. Mandatory overtime became standard practice. Shifts became variable with no notice required. Health care coverage went away, was reduced to cover only the employee, or became expensive. Workers would be penalized for taking their vacation time in various ways or vacation time would be eliminated altogether.
I've watched it happen. I firmly believe that most unions help keep labor jobs fair for the laborers. There are definitely examples of unions going overboard, but most employees keep the unions under control. Overall most people want to do their job, earn their money, and go home, I've personally seen little support for striking and few people wanting anything beyond what's fair.