GM and China Queries


#1

Background:



On the Midday Program of Minnesota Public Radio, a Far Eastern expert expressed the opinion that General Motors Corporation will close down all of its North American manufacturing facilities over time and will come to rely on its 49% share of a Chinese joint venture for shareholder value. He observed that GM already sells more cars in China than in the U.S.



Queries:



What do you think?



A smart move?



Will it improve quality?



Would you call today’s GM an American company or a Chinese company?


#2

GM will do what makes the most money. If that means China, it will be China. However they are aware that if they start celling China made cars here, they will face resistance in the sales area. I suspect they will build mostly for the China market over there and NA over here. They then may ship a few each way.

The one factor that could cost a shift in their plans would be US unions.  If the cost of US workers continue high, then we are likely to see more "Made in China" labels.

#3

Just because this “Far Eastern Expert” made this particular pronouncement, that does not mean that this is the path GM will actually take.

GM has received wage and benefit concessions from US-based personnel, and their North American sales are now quite good again–both of which factors bode well for its continued operations in North America. Their quality ratings are also very much improved, which helps to bolster their position here. I cannot call myself an expert on the Far East, but I believe that the opinion expressed by that “expert” are mistaken.

Opinions are like…noses.
Everybody has one.
(With the exception of some lepers)