Citing labor costs as an advantage, DaimlerChrysler is mulling over plans to build small B segment vehicles in China for export to overseas markets including the U.S. DC said that a decision would be made in the second half of the year. This week GM showed the new Chevy Aveo which would be built in China for export. Bob Lutz summed it up, "Anybody who wants entry into this low end of the market finds it can no longer be done in the U.S., it has to be done in a low-cost country." The labor rate in China is about $2 an hour, who can compete? The 2006 Chevy Aveo is shown.

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