GM Will NOT Import Cars From China

[forddaughter]

But in an interview with The Associated Press on Thursday, United Auto Workers President Ron Gettelfinger said GM will not import the cars from China and had agreed as part of a concession deal to build them in the U.S.

 

http://www.mansfieldnewsjournal.com/articl...ATES01/90529015

[LSFan00]

So now, unlike any other manufacturer on earth, GM will be able to build profitable subcompacts in the US. Okay.

 

A summary of a concession deal between the UAW and GM deal says an innovative labor agreement is needed for the company to produce compacts in the U.S. But Gettelfinger said that deal is near completion.

 

“I think basically we’re there,” he said. “There may have to be a few minor tweaks. The agreement that’s in place here is competitive.”

 

GM’s plan to make the Spark subcompact in China and ship it to the U.S. drew criticism from the UAW and some members of Congress as it was negotiating the concession agreement. The plan was a political problem for the company, with the UAW saying it was wrong to take U.S. taxpayer loans and then ship jobs overseas.

 

GM has received $19.4 billion in federal loans and likely will get another $30 billion.

 

Somehow, I don't think this will impact Ford/Toyo/VW plans much. What a joke of a company. If you do work for GM, you should be coming up with an exit strategy, pronto. It looks to be filling the "least competitive" niche Chrysler had occupied for the past several decades.

 

[azulejost]

I just read the same news over at autoweek.com and am a little shocked. While it would be great to build more vehicles in the US, this announcements seems much more like a hastily made statement in hopes of gaining support as they head to bankruptcy court. I suspect Obama and the Auto Task Force have something to do with this being made public today. Billions of taxpayer dollars that we were assured would be recovered are now being forgiven in exchange for over 70% ownership in a "new GM." I would love to see the new company suceed and repay the debt and get out of government control, but Autoweek suggests this could even be an additional model along with the Spark. The B-segment may be growing, but not enough to build two models unless one is a B-Max type vehicle that can be sold for a bit more money. If that's the case, maybe there is some way to make money on such a vehicle built in the US, but I will admit I am skeptical of this plan.

 

On the bright side, it cannot be worse than the Aveo, other than the fact every American will have helped subsidize its development and production. I've gotta say, I don't think Monday's bankruptcy will be the last for GM the way this is going.

[silvrsvt]

So now, unlike any other manufacturer on earth, GM will be able to build profitable subcompacts in the US. Okay.

 

That was my first thought!

[focus05]

That was my first thought!

 

With Uncle Sam and the taxpayers behind them, profits are about as useful as good business practices these days at GM.

[jpd80]

Somehow, I don't think this will impact Ford/Toyo/VW plans much. What a joke of a company. If you do work for GM, you should be coming up with an exit strategy, pronto. It looks to be filling the "least competitive" niche Chrysler had occupied for the past several decades.

Remember, this was always about the impact an uncontrolled GM bankruptcy

would have on employees, suppliers and the community.

 

When the American people realize that GM is being divided into two, all the debts left behind

with investors and suppliers so they can resume business as usual with taxpayers money,

they're gonna be mighty pissed.