BMW China Factory
As drafted, the crisis in the automotive industry in North America has the potential to shake the economy of the United States and Canada to their respective nuclei especially if General Motors or Chrysler goes bankrupt. For now, Ford seems they may be able to enjoy the storm out, but thei ™ € ll sink quickly if the company fails.
All three automakers have been scaling back on advertising, plans and future product releases and various marketing systems, including GMA € ™ s recent announcement that they wouldn € ™ t press conference at the next weeka € ™ s Fair in Los Angeles. Auto shows, in especially the size and caliber of LA, are perfect opportunities to introduce new models and concept vehicles to members of the press, which in turn, the car companies much free publicity. GM plans to deploy the Chevrolet Cruze, Cadillac CTS coupe and other models, but thei € ™ ve decided to wait until January when he was Detroit € ™ s turn to host a show.
Stay with MEA € | I know I digress!
United States, Canada and Mexico Suffer
Should GM Chrysler or even fail, the repercussions will be felt throughout the industry, in effect through the number of provinces, states, and small towns that dot Canada and the United States. Mexico, which is geographically part of North America, but distinct in that the auto industry is interested would suffer too much â € "there are plenty of Big Three plants in the United States of Mexico, our southern friends would experience massive layoffs, a mortal blow to a third world nation.
A domino effect would be even bigger kick in depending on the magnitude of the fall is. Chrysler General Motors and Ford each with the same suppliers, but do Toyota, Honda and Nissan for their many cars built in North America. Every single one of 500,000 or Toyota Camry so sold on this side of the Pacific are built right here â € "if the main providers went under because the Big 3 (or part thereof) went down, the impact on Japanese brands would be enormous. Subaru, Hyundai, Kia and BMW are some of the brands â € œforeignâ € other with assembly lines here.
A major international producer
One way for GM to gain some influence in both for federal aid, union concessions, or both is simply to transfer part or all of its production abroad. A blow, but he who is bent on survival. Think about it: in 2007 General Motors sold more than 9.2 million cars worldwide. In only U.S. figure was about 3.5 million, leaving 5.7 million vehicles built beyond America. Although GM is the manufacturer of vehicles elsewhere, the most profitable vehicles sold in North America â € "large SUVs, trucks and luxury cars that provide most of GMA € ™ s profits.
In China, GM has grown at an explosive rate where the Buick brand sells twice as many vehicles there as it does in the United States. General Motors is now the largest producer of passenger vehicles China, with more than one million vehicles produced in 2007 alone.
title = "The Detroit News"> News DETROIT (AP) reported yesterday that GM is seeking to increase its stake in one of its joint ventures in China. SAIC Wuling Automobile, and General Motors has a manufacturing partnership separate site (SAIC-GM-Wuling) where the company manufactures some GM models. As a side note, these cars are not necessarily ™ € t counted in the GMR € ™ s annual sales figures, but if they were then genetically modified to be ahead of Toyota in worldwide sales race.
Upping its stake in a Chinese company
Newspapers managed by the Chinese State say that GM is interested in increasing its share from 34% in the joint venture may be purchased by 15.9% controlled by Wuling. Regardless of the how it all plays out, is one of GMA € ™ s joint venture or its wholly-owned companies could increase production to start building some of the cars produced in North America and ship these models across the Pacific to sell dealers GM. GM would quickly escape from a work situation while not telling the U.S. government thank you but no thank you, because they move their production abroad.
Building cars in China would be much more beneficial to society as the automaker would much lower labor costs that would more than cover shipping and return cars to U.S. suppliers of the United States could still be used, at least for the short term, until the Chinese auto suppliers are taking over. Of course, logistics terrible noise, but it will five years and the move could be made.
Dumping the UAW and the CAW
Is this direction, I would ask GM to go? No, absolutely not. I can not think of a myriad of political reasons why this idea is terrible, one being our dependence a communist country to supply our products (oops, too late for that!) However, when you back to the wall and youâ ™ € re fighting for survival (or at least we say youâ € ™ re about to cut down for the count) by taking drastic measures may be the only thing available.
In short, General Motors wants to sound the death knell of the two unions issue â € "the UAW and the CAW â €" the unions to consider responsible for at least a significant portion of their current woes. While GM management should share some of this responsibility as the federal government (American) whose ridiculous CAFE, security, and anti-pollution have put an enormous drag on the automotive industry.
About the Author:
Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including custom air fresheners and carpet.
Article Source: ArticlesBase.com - Gm’s Simple Solution: Move Production to China
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