Can this really happen? Will our small car output end up in China?
http://finance.yahoo.com/columnist/article/business/10045
http://finance.yahoo.com/columnist/article/business/10045
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Shock waves in Detroit?
- Thread starter ShoeshineBoy
- Start date
I think this is the part that ShoeShineBoy is referring to:
DaimlerChrysler is holding talks with China's Chery Automobile Co. to build a subcompact car to sell in the U.S. The discussions may make the United Auto Workers union mad, but the automaker's Chrysler Group and its rivals -- General Motors and Ford -- are desperate to find a way to make money on small cars. Detroit hasn't been able to manufacture subcompacts profitably for decades, thanks to low profit margins on small cars in general and high costs at unionized U.S. factories. China's low-cost manufacturing could offer a solution.
DaimlerChrysler is holding talks with China's Chery Automobile Co. to build a subcompact car to sell in the U.S. The discussions may make the United Auto Workers union mad, but the automaker's Chrysler Group and its rivals -- General Motors and Ford -- are desperate to find a way to make money on small cars. Detroit hasn't been able to manufacture subcompacts profitably for decades, thanks to low profit margins on small cars in general and high costs at unionized U.S. factories. China's low-cost manufacturing could offer a solution.
I expect to see Chinese cars offered for sale in the USA sometime. Cars from other parts of the world are selling in the USA, why not Chinese cars?
I remember Visteon reporting, maybe in the last annual report that their Chinese automobile parts plants are very profitable but their US plants are losers. I recall reading Visteon selling some USA plants back to Ford. I recall reading Ford is attempting to sell the plants but have no memory of any of the plants actually being sold.
If the Democrats win the next presidential election then possibly the Chinese will be told that to sell cars in the USA they must build their plants in the USA. Lots of things might change after the next two elections.
I remember Visteon reporting, maybe in the last annual report that their Chinese automobile parts plants are very profitable but their US plants are losers. I recall reading Visteon selling some USA plants back to Ford. I recall reading Ford is attempting to sell the plants but have no memory of any of the plants actually being sold.
If the Democrats win the next presidential election then possibly the Chinese will be told that to sell cars in the USA they must build their plants in the USA. Lots of things might change after the next two elections.
'If the Democrats win the next presidential election then possibly the Chinese will be told that to sell cars in the USA they must build their plants in the USA. Lots of things might change after the next two elections."
there would be a couple negative implications if that were to happen. US car companies would simply continue to lose the small car market to foreign companies, like honda and toyota and or the quality of those US small cars will suffer or become more expensive for the consumer. we may lose jobs if us companies were allowed to manufacture cars in china, but at least US investors would profit, as would the US government's tax receipts.
there would be a couple negative implications if that were to happen. US car companies would simply continue to lose the small car market to foreign companies, like honda and toyota and or the quality of those US small cars will suffer or become more expensive for the consumer. we may lose jobs if us companies were allowed to manufacture cars in china, but at least US investors would profit, as would the US government's tax receipts.
Quote from Hook N. Sinker:
I expect to see Chinese cars offered for sale in the USA sometime. Cars from other parts of the world are selling in the USA, why not Chinese cars?
I remember Visteon reporting, maybe in the last annual report that their Chinese automobile parts plants are very profitable but their US plants are losers. I recall reading Visteon selling some USA plants back to Ford. I recall reading Ford is attempting to sell the plants but have no memory of any of the plants actually being sold.
If the Democrats win the next presidential election then possibly the Chinese will be told that to sell cars in the USA they must build their plants in the USA. Lots of things might change after the next two elections.
Actually, it has been very difficult for the Chinese to break in directly to the US market. This is one of the few markets where the Chines are just not ready. What China has needed is a partner. And, hey, who better than Chrysler?
Personally, I don't think the Dems will have much say in this, because Ford and GM are struggling horribly. It's a matter of time before they simply have no alternative. Detroit can't compete in the small car market, which let's face it is the future of the auto industry, w/o foreign help...