General Motors In Delaware
73DID YOU SAY DELAWARE?
Building a new automotive plant to build domestic cars by a US Corporation sounds wonderful; but is it? The average American would hail this as a triumph of the Obama administration, but let’s look at this further.
WHY DELAWARE?
This state is not known for its production of automobiles, but look at which state our Vice President represents. I guess you could use a very well known quote; “bringing home the bacon.” Could it have been Joe Biden’s turn? I can’t think of any other reason. If it had been a chemical plant (DuPont), I would applaud this action. Cars, I don’t think so.
WHY IT SHOULD HAVE BEEN MICHIGAN
Detroit is the capital of our country for building cars. With an unemployment rate now reaching 17% (in Michigan), this city and state has the most experienced workers in this particular field. Any city in Delaware will have to train workers from scratch. This has to be reflected in the price of the car, or profit (if any) goes down. Then again, a loss may occur. Delaware does have a higher than average unemployment rate, but Vice President Biden is trying to help. The below link is not quite up to date.
http://www.bls.gov/web/lauhsthl.htm
WHAT OTHER COSTS INCREASE?
The metals used in making cars are mostly from foundries and smelting companies located in the Midwest. The east coast has these companies too but not as many, therefore materials will have to be shipped farther. This will also jack up the price of a car.
If GM wants experienced car production managers, they won’t find them in Delaware. They will have to find them (mostly in Michigan) and bring them to Delaware. It always costs more money in salary or incentives when a family has to relocate. These people are not union members, they are management. This will also add to the cost of an automobile.
ANOTHER COST?
My guess is that most people in this country do not live near Delaware. Shipping costs from Michigan, located closer to the middle of the country will mostly be lower than they will be from Delaware. This is yet another added cost to the automobile.
Remember, this plant must be unionized, so most other costs are set. Does this new plant sound like it will be successful; I’m not going to offer an opinion? Make up your own mind based on the facts. I do know the people of Delaware will appreciate this, but with the sales of GM cars on a downward slope; how long will this new plant be operational?
PrintShare it! — Rate it: up down flag this hub
Comments
Funny politics amakes strange bed fellows.
Thanks for the infor, Harvey.
Keep on hubbing!
PDW,
Al Gore is an idiot. Half a billion to Finland; why so little. I pledge .32!
PDW,
Al Gore is an idiot. Half a billion to Finland; why so little. I pledge .32!
eovery,
I was in the bathroom, they thought I was showering.
Harvey,
You hit every element except one, and that is the additional Government revenue gained by the extra use of fuel in additional shipping through "Cap and Tax" legislation.
Most people in this country do live near Delaware. Population density is much higher on the East Coast than in Michigan. It makes no sense for any international corporation to build all its' manufacturing facilities in one state, especially a state as messed up (by Democratic leaders) as Michigan already is.
I don't think this is a GM plant anyway. A third party, Fisker, plans to refurbish a shuttered GM plant in Wilmington to build hybrid or electric cars.
The plant only closed last Summer; there should be plenty of talent in the area.
Tom,
Excellent point, but when everything "turns green" that won't be much.
Ni,
These cars won't be going overseas, they don't want them! As for the density issue, there are more people there and it will help their unemployment problem. The Michigan unemployment is 5% higher and Detroit is dying.
Detroit will turn into the "bad lands" without jobs, it's almost there now. The workers and managers already have the experiance; how much will that cost to train?
Ni,
These cars won't be going overseas, they don't want them! As for the density issue, there are more people there and it will help their unemployment problem. The Michigan unemployment is 5% higher and Detroit is dying.
Detroit will turn into the "bad lands" without jobs, it's almost there now. The workers and managers already have the experiance; how much will that cost to train?
Ni,
It was announced as a GM plant, so that's all I can write about. No matter what, these cars aren't what sells best.
Harvey, of course Biden would get a plant,why not? Great Hub as usual!
Deleware?? Biden??
Why didn't I think of that!!
I guess it has always been like that, when it comes to the VP most people don't even know his name!
Good job Harv!
This must be the one I could not get last week.
Great One,
Who remembers V.P.'s?
Harvey, I used YOUR LINK to learn that the plant is not a GM endeavor. This fact comes as a surprise to you? Evidently you didn't read it?
ni,
It is possible I missed anything today. Two friends were hospitalized and they are in serious condition. I've been quite mixed up. Not looking for sympathy, just stating fact.
I was reading Michelle Mackens book about the evil of our presidency. She writes about some of the back handed stuff Biden did with his son to rip off some businessmen. It appears that he is a freaking crook.
Keep on hubbing!
eovery,
Did that surprise you? Listen to him him, there have to be more intelligent people in Delaware. How else was he going to make money?
Then again, they are all dirty, that's how they got there.
ThePeeDeeWildcat says:
4 weeks ago
Bravo, Harvey! Your Hub has some echoes of an opus of mine penned October 13, 2009 where I noted that the American taxpayer has loaned over a half billion dollars to a concern where Al Gore has an iron in the fire. That loan is being used to build an automobile plant in FINLAND!!!!