Leaked GM document shows automaker plans to sell China-built cars to U.S. consumers
2009 Buick Regal (Chinese-spec) – Click above for high-res image gallery
A planning document given to lawmakers by General Motors reportedly shows that the Detroit-based automaker plans to ship 17,335 autos from China for sale in the U.S. in 2011. If GM succeeds in importing vehicles to the U.S. from China, it could be the first automaker to do so.
The document doesn't show which vehicle would be brought over from the land of the Great Wall (we'd take the Buick Regal, above), but it does provide GM's volume plans through 2014. By that time, GM plans to triple its China to U.S. exports to 51,546 units. While 51,546 sounds like a lot of cars, it only represents 1.6% of the planned 3.1 million (perhaps optimistic) sales the General is expecting five years from now.
Regardless of the quantity of vehicles coming in from China, union leaders are none too pleased with the development, says Automotive News. The 12-page document also showed increased production in Mexico, with annual units rising from 317,763 in 2010 to 501,316 in 2014. South Korea, which will likely make new vehicles like the Chevrolet Spark, will increase production from 36,967 in 2010 to 157,126 in 2014. In an open letter, UAW legislative director Alan Reuther has gone on record saying that GM "should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries."
While many would expect the U.S. to be the big loser here, virtually all of the related production loss occurs in Canada. According to the 12-page document, U.S. production would continue to represent two thirds of the overall sales volume for the next five years, while Canada is slated to lose 101,000 units.
Gallery: 2009 Chinese-spec Buick Regal
[Source: Automotive News, sub. req'd]
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Reader Comments (Page 1 of 13)
dukeisduke 11:35AM (5/12/2009)
I knew this was coming.
Reply
Quattroporte 11:40AM (5/12/2009)
What are tonight's Lotto drawings?
ronEbear 11:42AM (5/12/2009)
And why didn`t you warn anyone else? We could have avoided billions of lost dollars.
John P. 11:48AM (5/12/2009)
Yep, I was calling for this years ago. If GM could outsource just about all production they might actually start making a profit on each vehicle sold rather than taking a beating each time they push one out the door.
Since they have a pretty good foothold in China already this is a no brainer.
BigWill 12:06PM (5/12/2009)
This isn't that big of a deal. There have been Chinese engines in Equinoxes and Torrents for a while so the next logical step is to have the whole car made in China. Add in 1) the great job GM China has been doing with Buick and 2) the obvious cost advantages, and this is almost a no-brainer.
Plus there's the pleasure of giving the middle finger to Gettelfinger.
Dude 12:11PM (5/12/2009)
Now that's Change you can believe in!
Farmboy 1:53PM (5/12/2009)
I think we all had a feeling though. Hey at least I can get that Buick in lead...I mean red.
Laura Haven 2:34PM (5/15/2009)
I knew this was coming, but still, how's it going to create more jobs for the US when you're buying foreign??? Even though they say it's for the US????
America is NOT what it used to stand for.
I, for one, am VERY disappointed.
...but what did you expect??? We have to ask China for money to fight the wars for overseas!
frank 11:19AM (5/14/2009)
All I want to know is who is going to buy their over-priced under-built pieces of junk plastic when we are reduced to serfdom in the "service economy" they have planned for us. We are already in a downward spiral, with the big bucks going to those who can create the greatest perceived value for their activities, with the whole system dependent upon the whims of those with the greatest level of disposable income and the rest of us fighting for the scraps of their largesse. Eventually, there will be a correction. I don't know about you, but the plumber who fixes the sewer line that broke under my house does more for the quality of my life than any millionaire entertainer or athlete, so I plan on putting my money where it will benefit myself, and my immediate community. I'm through playing their game. I used to be a steelworker,so I understand exactly what is taking place in automanufacturing. As a result, I've bought my last new car, GM or otherwise, since the handwriting is on the wall. It will benefit my community much more if I buy a used vehicle from a local dealer than if I subsidize a Chinese manufacturer.
OLDONE3 3:43PM (5/14/2009)
Duke
Wake up the chinese do not even have close to the west's standard of living and beside they are still communist. They do not have an EPA who will clean up the toxic mess when they are done. What will happen to our blue collar workers? not everyone can be a CEO or work for the government. It is the greed of corporations and consumers that have ruined us.
marktbeauchamp 9:29PM (5/14/2009)
GM should have learned that they need to get rid of everything except Chevrolet and Cadillac. Saturn, Hummer, Buick....they all need to go! Learn from the Japanese. Manufacture a standard line and a luxery line....THAT'S IT! I thought that companies that outsourced to other countries would lose their bail-out money? What's going on with that?
dougmmckinley 9:31PM (5/14/2009)
Did anyone actually read the article to the end? The U.S. is still producing the majority of the products (cars) Canada is the one losing the jobs. Read as - US unaffected in job losses, only affected by poor running of companies!
bitz 10:41PM (5/14/2009)
Well, really what do we expect them to do. The Union workers get paid a ridiculous amount of money, and its always going up. A company can't pay their workers $95/hr and expect to make very much on their products, can they? Even a company as big as GM. Its the Unions that have brought this company to its knees. What choice do they have at this point?
Harley Cook 11:37AM (5/12/2009)
Just build Buick's for the chinese, old people and funeral homes and everyone will be happy!
Reply
Dude 12:24PM (5/12/2009)
Except for the old Chinese people visiting funeral homes.
John Johnson 11:38AM (5/12/2009)
Yay, awesome, I knew our tax dollars would be spent to keep jobs in America.
Reply
sk 12:39PM (5/12/2009)
Who is buying all those cars from China if we have no one with a job to pay for the imports. Our company leaders should go back to school again and learn the principles of economics before making such bone headed decisions.
Duke 12:52PM (5/12/2009)
Should we build walls around the country and not allow any imports? I don't think that solution would work too well either. Why is this so different than importing from Japan, Germany or Mexico to you all? I think people are overreacting to this idea a bit.
http://video.aol.com/video-detail/they-took-our-jobs-goobacks/3876285094
John Johnson 12:55PM (5/12/2009)
The thing that pisses me off the most is that the US is not labor-competitive. I understand this, I work in a manufacturing plant. When the cost savings are there, you do it. Better to keep a job for 100 people by keeping the company open than to lose 200 jobs because the company shuts down.
But the main reason the US labor market isn't competitive is because of the retarded unions demanding ridiculous wages for unskilled labor. I know that'll piss some people off, but sorry, that's the truth. You wanna keep your job? Better adjust to the salary you should be getting. Otherwise they'll find someone that will.
Judy Zik 2:25PM (5/12/2009)
You think you got it bad. The Canadian taxpayers have bailed GM out more times than I can remember and each time we get rewarded with a slap in the face. The plan is likely to build the Regal in China instead of Oshawa. The Oshawa plant (GM's last stand alone plant in Canada) will probably get wiped out so the Canadian taxpayer will end up with a 2% stake in a company with only 1 small joint venture plant in Canada. So instead of getting your Regal from a plant known for build Quality awards you will get one made in China. Have fun with your GM warranty while it lasts.