« | »

Obama/GM To Make More Cars Overseas

From an approving Washington Post:

Under Restructuring, GM To Build More Cars Overseas

By Peter Whoriskey
Friday, May 8, 2009

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production…

Labor costs in those countries are far lower. While paying a U.S. autoworker with benefits costs about $54 an hour, a South Korean worker earns about $22 an hour, a Mexican worker earns less than $10 an hour and some Chinese workers can earn as little as $3 an hour, industry sources said…

According to the figures shared with lawmakers, the percentage of GM’s U.S. sales of cars built in the United States dips from 67 percent in 2009 to 61 percent in 2012

Didn’t Mr. Obama promise to punish corporations who took their jobs overseas?

— Oh, wait, that was during the campaign, so it doesn’t count.

In fact, nothing Mr. Obama has ever promised counts. It’s ‘just words.’

But isn’t it especially ironic that this is happening despite (or maybe because of) the UAW now having such a large ownership stake in General Motors?

This article was posted by Steve on Friday, May 8th, 2009. Comments are currently closed.

15 Responses to “Obama/GM To Make More Cars Overseas”

  1. proreason says:

    hmmmm

    Smells like a rat to me.

    Since the UAW wouldn’t possibly stand for this, it smells to me that this is a trade-off and that the payoff will have something to do with Ford.

  2. Liberals Demise says:

    Is this part of the 3.5 million new jobs he espoused…..he just didn’t say what continent.
    Grrrrrrrrrrrrrrrrrrrrrrrrrrrr!!!

  3. Odie44 says:

    Didn’t Mr. Obama promise to punish corporations who took their jobs overseas?

    – Oh, wait, that was during the campaign, so it doesn’t count.

    Additionally the “tax shelters overseas” canard should be highlighted here.

    He is moving jobs off shore, while getting tax dollars from increased production in other country’s. Less overhead for GM, with lower wages – and increasing the tax rate of that production – going right into the pockets of Government Motors.

    Pro –

    Agreed – this si the “Ford Funk” you have been talking about – but after Wed performance #’s between GM and Ford – I think it will continue to trend that way (GM getting trounced) while the Rookie in Chief meddles with free market companies. UAW also benefits – because they can continue to pay union members for work not being performed – based on teh overseas revenue stream.

    Of course, you would think UAW members (not execs) would cry foul over this, but membership “has its limits”… as in a voice, freedom to express said voice – but hey making $35/hour while someone in China does it for $3 makes it “appealing”

    None of this helps GM’s core sales and it doesn’t come close to addressing GM’s overall problems.

    • proreason says:

      Odie: “but after Wed performance #’s between GM and Ford – I think it will continue to trend that way (GM getting trounced) while the Rookie in Chief meddles with free market companies”

      The Moron’s ego won’t be able to deal with a continuation of that trend.

      So, Ford is in bigger trouble than it thinks.

      They aren’t just dealing with a major recession, they aren’t just dealing with the UAW, they aren’t just dealing with intense foreign competition, they aren’t just dealing with an inability to borrow money, they are dealing with a crime gang in the White House that has Ford squarely in its sights as an example of an American company that cannot be allowed to succeed.

    • Odie44 says:

      Pro –

      I know we both agree and disagree on the result – but a few nuggets to point out:

      For the first time (in at least 75 years), Ford sold more cars in America than GM in Q1 ’09. (sales trumps all)
      GM’s losses totaled $6.8B, Ford’s loss $1.4B While I dont disagree the thugs are in office – I have a hard time beleiving they could make up that gap any time soon – in fact I think its impossible, being GM would have to increase sales by about 500%, while decreasing costs 80%. There aren’t enough people anywhere to buy.

      GMAC continues to be a losing entity, with massive debt and little to no rate of return in the future. Even if Bambi infuses bad money into them, again the amount of new cars financed would be impossible to come up with, inclduing the hyperinflated, low rate of return on bonds issued.

      Interesting – type “GM Ford earnings” into any search engine – first 10 results are at least 6 months ago and or 10 years ago – so yes pro – the thugs are in charge of info and content..

      In the 6 months since bailouts were offered or rejected here is the stock prices of each:
      GM: $4 – $1.60
      Ford: $2 – $6

    • proreason says:

      “I have a hard time beleiving they could make up that gap any time soon ”

      They won’t try to make up the gap.

      They will force Ford to bow to Obamy.

      Ford will be forced to take government funds or forced to give equity to the UAW, or somesuch that will guarantee that it won’t do any better than Chrylser or GM. The excuse will be the same as it is for the banks…you must take TARP funds so the government can protect the people….when of course the real reason is that the government is asserting micro control over private business, the true goal of all of this.

      Because if Ford suceeds, it will be a beacon that the free market beats Obamunism.

      And that won’t be allowed.

    • Odie44 says:

      pro –

      No way in hell Bambi would get away with forcing TARP on Ford AFTER Q1 09 numbers have been posted.
      He may try, and may have the usual suspects burying real data and force feeding bogus theories, but no way in hell will they go after Ford with forced TARP monies.

      And lets remember – Ford is in Michigan, aside from the glaring truth of these numbers – forcing 1 company out of 3 in the same state, even with union backing would be politically “wrong” for Bambi. Ford employees and friends alone could tip the scale there.

    • proreason says:

      Odie, game on.

      I say Ford will go the way of Chryler and GM within 12 months.

      I’ll take mine in Heineken or whatever we’re allowed to drink in May 2010, next time I’m in Northern Florida.

      But if I lose, I’ll be happier.

    • Odie44 says:

      Guinness man myself and if you are ever in the Panhandle between now and then – give me a shout.

      We can cheer the new F-35’s overhead…

      And I believe Ford could easily get funding from private sector companies, though God forbid – they engaged in a TARP bank for said funding… you may end up being right.

  4. Reality Bytes says:

    Gotta chime in, SG: The only ones who CAN get away with using non union ARE UNIONS. There isn’t a union hall or local’s business agent’s home addition that wasn’t built without the lower cost workers.

    That’s A Fact Jack!

  5. 12 Gauge Rage says:

    With technology becoming cheaper and the widespread use of the internet, how long will it take before auto workers in Mexico, China, and South Korea begin to realize that they can negotiate for a higher wage? And then go on strike if these demands are not met? The corruption in these three countries far exceeds that of our own. Corrupt officials and unions just seem to hit it off perfectly from the start. As for Ford, while I don’t particularly care for their products I commend them for not taking any bailout money. Of course this hasn’t set well with the tax and spend thuggocrats on capitol hill. Self sufficient Americans never sits well with their mindset.

  6. DGA says:

    So if this trend continues, GM will eventually do NO work here, it will all be farmed out to China, Mexico, you name it, yet all the lazy UAW workers will still be living off the union pensions. GM profits (if there is ever such a thing) will be sucked up for full UAW retirement programs only. Some business model.

  7. MinnesotaRush says:

    I wonder what the ‘spin’ will be when this dillusional nitwit’s house of cards comes crashing down and even his minions can finally see it (?).

  8. Confucius says:

    Isn’t it ironic (if not telling) that foreign automakers are coming to America to build their cars while U.S. automakers are leaving to build our cars somewhere else?


« Front Page | To Top
« | »