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GM Driving Toward Chinese-Made Cars For America

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2007 Buick Riviera Concept (China)

2007 Buick Riviera Concept (China)

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GM says it will be building more cars abroad after it completes its reorganization, inside or outside of Chapter 11.

Automotive News, following on this morning's press conference in which GM CEO Fritz Henderson said the automaker was more likely to file for bankruptcy than not, reports that the sales of Chinese-made cars would begin in 2011, and would make GM the first big car company to bring over whole vehicles for U.S. consumption from China.

GM has imported V-6 engines made in China for the Chevrolet Equinox, but the sale of Chinese-built cars would trump China's own visions of exporting cars and would also occur while other China-car plans--brands like Geely and SAIC have tried to cut deals to sell cars in the U.S.--have dissolved. The cars would account for about 50,000 sales a year in the U.S. starting in 2014, the News reports.

Potential models for assembly in China and sale in the U.S. would include versions of the Chevrolet Spark, a subcompact recently confirmed by GM for global sales. A fascinating option would be Buick, which has penned concepts like the 2007 Riviera (above) in China and could build new vehicles in China at huge cost savings.

At the same time it begins selling cars from China, GM would also cut Canadian imports to the U.S. and expand assembly of cars and trucks in Mexico and South Korea.
[Automotive News, sub. req'd.]

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Comments (7)
  1. "Engineer"

    No way will this happen. Wait till the UAW demands that Obama hold up on more billions unless all manufacturing uses UAW workers. Change you can believe in.
     
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  2. "Don't see it happening, either."

    This scenario makes perfect sense--which is why it will never happen.
     
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  3. "Pure Crazy"

    In or out of bankruptcy, GM will still be majority owned by the UAW, CAW, and the US Government. So do you think for one minute that the new owners of GM will send more manufacturing jobs overseas after investing sweat equity and billions of dollars to try to revive GM for the benefit of workers and taxpayers? The answer is no. Plus China has not proven that it can build quality automobiles for this country yet. GM senior management and the Board of Directors are going to get thrown out anyway after the ownership change. Now it will just happen faster with these notions.
     
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  4. "Capitalism"

    This is globalization. If there is a higher profit margin, why not. It is not unethical or committing a crime to produce products somewhere else. It has been happening for a long long time. Profit determines if a company is going to survive or not. This is capitalism and isn't this what are taught when we go into the faculty of business or business management at the top universities in the US. At this is what I have learnt. Of course if you study in China, then politics comes first no matter which faculty you go into.
     
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  5. "Not likely"

    The US public see Chinese cars as poor quality. If GM do this they will go backwards as they will go from a solid brand name that can charge a small premium to one that will only succeed battling purely on low prices as the perception of what quality they had will vanish. This idea might seem the way out but it will cost them profit margin and sales in the long run. I believe the Chinese one day will make decent cars and export them - give it 20 years, but not now. They can't even make a decent copy of existing cars.
     
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  6. "U.S. Jobs"

    I agree with Mr. D, in that we just bailed this company out with taxpayer dollars. What was the point if there is no benefit in terms of jobs remaining here in the U.S.? This simply ensures that the rise of Chinese-manufactured cars leads to profits for a few rich Americans, instead of whatever new Chinese company would have stepped up and started selling here.
     
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  7. If you guys think that GM will not move from a us based manufacturing company to china your living in a dream world. There is no loyalty among UAW leaders and our current Govt. only the bottom line! These guys are not patriots only puppets. And if you dont do something now our whole country will go broke due to stupidy. Stand up and fight for your country not your Business.
     
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