See the USA in a Chevrolet Made in China
So, what else is new? How many times has America saved an industry or country by directly intervening, either with money like they did with GM or with Iraq, with troops, and then, years later, it turns out bad?
Iraq is going that way and so is GM. Despite the fact that GM has now recovered from the American bailout, China is the new promised land, not America. China is becoming GM's global export base. Americans saved their iconic GM and China reaps the rewards.
GM is spending $11 billion on new production lines in China, that by 2016, will have created 6000 new jobs for them. In comparison, GM has only spent $8 billion on their plants in Detroit since 2009 and its bankruptcy. Worse, since 2005, the number of workers employed in North America by GM fell by 76,000.
Is this a WTF moment? Duh!
GM's plan is to make their American cars more Chinese and sell them to the world and planning to export over 100,000 of them back to American customers. Even the President of GM stated, "Americans could be buying GM cars made in China very soon". This is a shock to everyone in America including President Obama and former President Bush, both involved in saving GM.
The GM investment in their new plant in Shanghai will be come its main plant, with the Detroit plant a secondary one. Many Japanese and German cars made in the USA are already exported to foreign countries for sale because the labor in the USA is cheaper than in Japan or Germany. So, GM is simply following their strategy. But all the auto makers are doing the same thing in China, GM is not alone.
China is also reaping huge advances in technology because its government forces foreign corporations to transfer key technology to them in order for them to make their products in China. How else do you think China is acquiring such skill in so short of time?
Will Americans still buy GM cars here that are made in China? Probably, many Audi and VW's are made in Mexico. But, the whole GM bailout reason has been defeated- America did not benefit much from saving it.
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