TTAC commentator kurkosdr is having issues with “the comminazi governments of Russia and China.” He’s hoping that “perhaps we can still save the car industry from the Chinese and the Russians.” He better be heading for the hills, because New GM has completely opposite plans.
At GM, China rules the world. The Freep writes that “while GM’s Canada and Mexico operations report through the United States, most of the rest of the world reports through China.” Everybody outside of North America (and Opel:) Polish up on your Chinese, and learn how to sing “Dong Fang Hong.” (You need to do better than the guy in the video.)
GM Shanghai’s Nick Reilly was promoted from overseeing GM’s Asia operations to overseeing all of the automaker’s operations outside of North America, except for Opel.
And the Freep loves it: “GM has learned much from its Chinese partners.” One thing GM learned that even at GM, there can be growth. As long as it’s Chinese GM.
“GM’s July sales in China through its joint ventures increased 77.7% to 144,593, which the company says makes it the best July ever in its books. For the first seven months of the year, GM’s China sales were up 42.8% to 959,035, according to GM,” says the Freep. Hussa! Excuse us: Hao ba!
How long will it be until whole GM is chinesefied? Not long, thinks George Magliano of IHS Global Insight:
“If you look at GM going forward, they are a smaller company, they are more refocused. If they turn themselves around and they have resources . . . to put behind things, it’s going to be China and Asia.”
And it’s being done with our money. Even my most socialistic friends are shocked at what they see. It’s OK to steal billions from taxpayers for Flint and Lansing but another for Ghuanzou.
The first cars Made In China for sale here will have GM on the side. Maybe GM will stand for Ghuanzou Motors
Obviously the GM dealership experience must be a lot better in China. How else can sales of that magnitude be explained?
Engines are a major component and expense, in new cars.
Chinese engines have been appearing in GM vehicles built for North America for years. Literally.
Mexican built Buick Rendezvous (and the “whole ugly tree hit it” Pontiac Aztek) had Chinese built OHV and OHC V6’s.
The current Chevrolet SUVs built in Ingersoll, Ontario by Suzuki on contract have Chinese engines, too.
Let me guess that “kits” will come from China and will be assembled in Mexico, based upon Daewoo technology.
I think some of the Chevrolet Aveos are assembled in Mexico right now, probably from South Korean parts. I can’t stomach going to the Chevrolet dealer long enough to even look at the sticker on one.
Perhaps at the next Detroit car show I’ll have a peek, in January.
The Aveo maybe an above average car in China. GM does best when the standards are lowered.
All building towards what I’ve been telling people for about a decade: China will take over the world and become the #1 superpower. And not through war–through economy. When China takes over, how can America, Britian, Canada, et all, stand up to them when EVERYTHING we own is produced and/or owned by them?
“And it’s being done with our money. Even my most socialistic friends are shocked at what they see. It’s OK to steal billions from taxpayers for Flint and Lansing but another for Ghuanzou.”
Not a single penny of the Bailout left the states, and if you want your tax dollar back, you should hope that GM does well in China. And don’t forget, it was a bridge loan (ie you get the money back)
timestheyareachanging
Update: the “bridge loan” moniker was applied to the first round of federal financing. Post C11, the $62 billion taxpayer tab (and counting) is referred to as “an investment.”
Robert,
True apologies, but the fact remains, US government owns circa 50% of the shares in new GM. these will inevitably be sold off eventually. But for these to ever have value GM needs to succeed in China.
timestheyareachanging
1. That’s 61 percent.
2 There is no guarantee that an New GM IPO will happen, or that it will be “successful” (i.e. pay anything more than cents on a dollar) when/if it does.
3. China isn’t GM’s problem. It’s the American market. If they don’t sort out the U.S., the U.S. will drag them under. Again.
GS650G :
September 1st, 2009 at 9:05 am
And it’s being done with our money. Even my most socialistic friends are shocked at what they see. It’s OK to steal billions from taxpayers for Flint and Lansing but another for Ghuanzou.
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Actually no. Our money went to pay UAW salaries. Without the profit from China, GM would have used more of our money to do that.
Mr. Farago, if GM winds down US operations and shifts to Chinese everything then they won’t have to worry about the US dragging them under. This is very well what’s likely at foot here and of course, quite sad.
What is good for GM isn’t necessary good for the USA anymore
There isn’t much point in exporting ‘kits’ aka CKD from China to the USA. The quality problems from CKD are not insurmountable, but they are hard, and of course you’ve still got 500 bucks of labor in the thing if you assemble it in the USA, vs about $20 in China.
I don’t know what the difference in shipping costs is, but the sheer convenience of being able to drive the car off the boat onto the transporter must outweigh the hassle of unpacking crates and throwing the parts together etc.
Might be worth looking at the current success of CKD around the world, I’m sure the dynamics have changed since the 90s.
The difference between shipping CKD kits and whole cars is negligible. CKD is not very cost-efficient. You either want to build it there or ship it there. CKD was born as a way to circumvent customs duty, if the duty on whole cars was higher than on parts.