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GM in China

Started by Charles D. Barnette, April 02, 2008, 05:00:15 PM

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Charles D. Barnette

GM now has eight joint ventures in China and about 20,000 employees in the country. As of last Monday, GM began production at a new manufacturing plant in Quigdao, China. The plant will make small work trucks. I wonder if Cadillacs will ever be made there? Charles D. Barnette

Charles D. Barnette

Correction. The correct spelling of the city is Qingdao, China. Charles

homeonprunehill

Quote from: Charles D. Barnette on April 02, 2008, 05:00:15 PM
GM now has eight joint ventures in China and about 20,000 employees in the country. As of last Monday, GM began production at a new manufacturing plant in Quigdao, China. The plant will make small work trucks. I wonder if Cadillacs will ever be made there? Charles D. Barnette
04-02-08
Charles, You can bet your "bippie" or any other part of your anatomy,that trhey will be made in EITHER China or Mexico!
USED,ABUSED AND MISUSED CADILLACS AND LA SALLES

Joe Manna

You know what the shame of all this is,they shut down the plant in Linden NJ,and they open a plant in China.What about the people in this country that are out of jobs?
1951 Chevrolet Bel-Air-50's Style Custom
1963 Cadillac 4 Window Sedan deVille
1991 Cadillac DW69 Brougham,All original and used daily
2015 Cadillac SRX

The Tassie Devil(le)

I have been saying that all the time.

When they opened plants in Mexico and Argentina.

People have to realise that they should support the local manufacturers, or suffer the consequences of unemployment.

Once the Manufacturers understand this, they won't close down local plants if they want to keep a market-share.

Bruce. >:D
'72 Eldorado Convertible (LHD)
'70 Ranchero Squire (RHD)
'74 Chris Craft Gull Wing (SH)
'02 VX Series II Holden Commodore SS Sedan
(Past President Modified Chapter)

Past Cars of significance - to me
1935 Ford 3 Window Coupe
1936 Ford 5 Window Coupe
1937 Chevrolet Sports Coupe
1955 Chevrolet Convertible
1959 Ford Fairlane Ranch Wagon
1960 Cadillac CDV
1972 Cadillac Eldorado Coupe

David King (kz78hy)

Stretch STS's are already made at Shanghai South Assembly for the China market.
David King
CLC 22014  (life)
1958 Eldorado Brougham 615
1959 Eldorado Brougham 56- sold
1960 Eldorado Brougham 83- sold
1998 Deville d'Elegance
1955 Eldorado #277
1964 Studebaker Commander
2012 Volt
CLCMRC benefactor 197

Director and Founder, Eldorado Brougham Chapter
Past President, Motor City Region

Rare Parts brand suspension parts Retailer via Keep'em Running Automotive

Joe Manna

You know Bruce,back in '79 or so,my Dad took my brother and I on a tour of the GM plant in Linden.That is where the Eldo's and Sevilles were made.In fact the way I remember it is R.E.S.T.That stood for Riviera,Eldorado,Seville and Toronado.That was an exciting day for me.Joe
1951 Chevrolet Bel-Air-50's Style Custom
1963 Cadillac 4 Window Sedan deVille
1991 Cadillac DW69 Brougham,All original and used daily
2015 Cadillac SRX

Mike Josephic CLC #3877

Asia is THE world's developing market and China's economy is growing and
will continue to consume more of the world's resources in the next few years. India
is next. Growth in these countries averages 8-12% per year GNP -- ask yourself
what are we doing now?  Negative numbers -- witness the recession mania that we
hear daily.  If you think $3.50 / gallon gas is bad -- compair it to Europe where it is
already over $8.50 / gallon.

Cadillac already has an established a dealer network in China -- next step will
be to build plants there to supply the Asian market.  All other producers
of manufactured goods already have already done that or will be doing the
same soon.  The chemical company I worked for has already moved several
plants to China and future capacity expansions are planned for Asia -- not here.

Unfortunately, the UAW and their like cannot continue to demand
$40 per hour including full benefits (without any co-pay) and expect
to be competitive in today's global economy.  I know that this will
likely rile some people here but that's the economic truth -- like it or
not.  We have to wake up soon or we'll be out of heavy manufacturing
forever.

Mike
1955 Cadillac Eldorado
1973 Cadillac Eldorado
1995 Cadillac Seville
2004 Escalade
1997 GMC Suburban 4X4, 454 engine, 3/4 ton
custom built by Santa Fe in Evansville, IN
2011 Buick Lucerne CX
-------------------------------------
CLCMRC Museum Benefactor #38
Past: VP International Affiliates, Museum Board Director, President / Director Pittsburgh Region

walt chomosh #23510

Mike,
  Your comment......Unfortunately, the UAW and their like cannot continue to demand
$40 per hour including full benefits (without any co-pay) and expect
to be competitive in today's global economy.....you make it sound like Union employees are at fault and their the only ones being hurt by this corporate agenda to OUTSOURCE WORK AND MAXIMIZE PROFITS.Trust me,the Union guys are not the ones sending the work out....and their's plenty of engineers and company people being hurt.I wonder what your company is paying their Chinese chemists?...can you reduce your lifestyle enough to compete with him?.......tulsa,ok

Richard Pope

GM has to do this to stay alive - it is no ones 'fault'. It is basically a strategy to stay viable in the next 'big' market. China's market is growing incredibly fast - I was there last fall after a 4 year absence and I could actually see the difference from my last visit.  India market is slowing down as their cast-system breaks down and more people are learning that they do have an option to change jobs or better themsleves. - China and India will however still be a big drain on natural resources.

Look at the bigger picture. Remember when everyone was complaining about how the Japanese car manufacturers were sending all their profits back to Japan? Now the US companies get to do that in India and China. Its a bigger market (1 in 3 on the planet are Chinese) and potential profits are staggering. What they do with that money is anyone's guess, but hopefully put it towards R&D. If you want GM to be around in the future, they have to do manufacturing where the market demand is located.

I just read a report that the demand in naterual resources has been growing at a very steady 2% pace for the last ten years. Granted China is about 5-6% but the US demand has actually deminished, in balance the rate stays the same.

Will the US take a back seat in Manufacturing - absolutely. Will the US loose it technolgy lead over the world? - I seriuosly doubt it. No other culture in the world promotes individual thinking like the US.

BTW, 90% of the taxis in Shanghai are propane VWs and the most popular private car brand I saw was Buick - everywhere you looked there where Buick minivans. If you had a engineering job or better you could afford to hire a driver - so they buy minivans

Richard Pope

I should have also mentioned that India manufacturing costs have gotten to the point where Korea is now taking the low paying manufacturing away from India. China will 'control' it growth through various means to keep inflation in check as well as individual power.
Basically in 5 years it will all balance out - there will be no 'low cost centers' and the work will be done by the closest facility. It won't take long for some jobs to come back.
However, I am symphathetic to those who have lost their jobs. My brother is an A&E mechanic for jet aircraft but was laid off. His was union and they found another job for him that he didn't like - so now he has started up his own motorcycle parts/repair business out of his home that is totally done via the Internet. Not a great living but it is both what he wants to do as well as pay his bills.

Whit Otis, 1188

This whole situation is simply about value.  Capital always seeks the areas of the world where it is least restricted and can be put to work with the least amount of risk, and still provide the best value to the customer.  35 years ago I bought a 1 1/2 ton floor jack from Sears for $125.00.  Last year I bought a 4 ton floor jack from Sears for $95.00.... made in China of course.  If I adjusted the original $125 for todays dollar, that original jack probably cost me 8 times $125.00.   The examples are rampant.  The bottom line is that innovation, technology, and free capital always lower the costs of doing business and ultimately provide more and more products to those who have less and less money.  Unfortunately, this means there are dislocations in the economy from time to time..... in other words, CHANGE leading to improvement.  People hate change, which leads me to wonder why they would vote for someone who constantly preaches change.  Since change simply for change sake does not always signify improvement, kind of a head scratcher to me.

"We must encourage technological progress whereby things currently useful may be produced at lower costs, hence distributed at lower selling prices, thus bringing them within the reach of a constanly increasing number.  In other words, more things for more people in more places..... there is no other way.  Irrespective of what is said to the contrary, new industires can be created, present industries can be expanded, unemployment can be eliminated in a practical way."  -A. P. Sloan, Jr.
Whit
Whit Otis -
1941 6219D Custom
1941 6219D
1940 7533F
1986 Mercedes Benz 560 SEL
1999 Bentley Arnage
2019 XT5
Drawing of AP Sloan Custom by Terry Wenger