Don't understand the auto industry...

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There has been talk for years of Asian cars being more US than the US Name plates.. All started with Toyota and Honda building cars here, etc. Nissan builds cars here, Hyundai now builds cars here, VW builds cars in Mexico (not sure if they have any plants in the US) and I'm sure I am missing others.

Anyway, I am the service manger at a Nissan dealer. Our sister store is a GMC Buick store. I see GM parts all day long come in, and it seems like more, and more, and more are all made in China. Stampings seem to come mainly from Canada. With out getting into too much detail, quickly I can state this.

Altima, Maxima, Titan, Frontier, Pathfinder, and Xterra are all built in the US, however the engines and transmissions are built in Japan. No biggie. I'd prefer a Japanese engine, in my honest opinion, Japans quality these days has an advantage in which the US used to hold.

Anwy, these vehicles come with a plethora of parts from Japan, Mexcio, USA, and a few from China. But no where nearly as many as the GM vehicles that they are producing.

I own a Mitusbishi Eclipse, built in a UAW plant in Il. Engine is Japan Mitsu, Trans is Japan Aisin. I have not found one China part on it. In fact, just about every part I've looked at is US made. I purchased these OEM parts :

Front Hub Assy. $179.23
Outer Tie Rod End $41.43
Inner Tie Rod End $40.58
Bushings
Struts FR $101.06 RR $102.82
and I'm sure some others.
Fact is, they were all USA Parts, and what I don't understand is how all we here is that US manufacturing can not compete with overseas cost. However, if you look at the cost of these parts, they are EXTREMELY competiive with over parts. Now, I can pick up things like cheap,cheap, tie rods for $10, or Hubs for $50 but most common part store parts are not much difference than the list price on these USA Oem parts.

Those are OEM List price. We get are Mitsu parts at 25% off list, which makes them even more affordable. But this makes be question all the hype that we as a Country can not produce a high quality part at a competitive price. Look at those prices, then go look at Moog or Napa chassis/steering parts, and Monroe or KYB Struts, and a SKF or National or something along those lines. Prices are very similar, and even more so now, those premium aftermarket parts are most likely imported from another country. Last Moog part I purchased, because from the picture on the Moog site, it showed a nice moog boot, grease fitting, etc. What showed up was a repackaged Central Corp (CTR) Korean non-greasable tie rod end with a $48 list price.

Come on people. Why is it so difficult to work with US vendors to build a high quality part at a decent price?


now, to defend China a little bit, I have to admit, I am pretty impressed that I can purchase a sealed front wheelbearing/hub assy with ABS speed sensor built in from one of my secret vendors for $20 each when an OEM part is $300. I don't understand how they can cast+machine+add components+boat a part like that to the US for so little money. Think about it, if I purchase these hub assys for $20 from my vendor, he has to make a couple bucks from selling it to me, and the original distributor has to make a couple bucks, and then finally the manufacturer over there in China has to make a couple bucks. How is this possible? Does it really only cost about $1 to make such a part?

I don't know.. just losing faith in our country...sorry guys..
 
Interesting.

I haven't found any made in China parts on my Ford yet, but it's approaching 10 years old. It does have parts from the US, France, Germany, Mexico, and Brazil though. My previous Ranger had a Japanese transmission.
 
I don't think there's any other country where people expect every single part of every auto (or any durable good) to be manufactured there. We still do pretty good, you know:

http://en.wikipedia.org/wiki/List_of_countries_by_exports

But we can't (and don't have to) make every single part of every single thing here. I think more pressing of a concern is our trade imbalance which is more driven by petroleum than auto parts.

The really cheap parts and knock offs are probably made in the 25th hour of production at the factory... ie... kinda under the table and with none of the investment/design/tooling included in the price.
 
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maybe mitsu execs don't make as much as GM execs?

IIRC when mercedes merged/bought chrysler, the MB execs were APPALLED by the outrageous salaries of the chrysler execs.

trade does and can work both ways. FWIW, my company makes laser devices here in the US and many of our customers are in china.
 
China continues to fix their exchange rates low. They are not floating their rate. That's really the main reason for ultra-cheap Chinese goods.
 
Give it some time the Chinese will copy the laser devices and sell the in the "free market" just like the have copied the aforementioned car parts.
 
Secret vendor? Muwahahahaha!

I got a hub/bearing for my silhouette off ebay for $35 or so from "Detroit axle" that was packaged "Dearborn Axle". Box had a Japanese sounding name but no country of origin. Well finished part. Sold the van before I can judge longevity.
 
Car and Driver Magazine had an interesting article this month showing the US/Canadian content of N. American built cars. It will surprise you to find that many Asian branded autos that are built in the North Amercia have more more US content than US branded cars. Just because you buy a Ford or GM car does not mean that it has more US content than a Honda, for example.
 
Some of the highest domestic contents were by US brands, but they represented a select few, really. Some very high profile and hot selling "US" branded cars have a shameful domestic parts content.

One of my vehicles is a "domestic" vehicle, at 80% domestic content. The other one is an "import" vehicle, at 65% domestic content. Neither one wears a "domestic" badge on the grille.
 
Originally Posted By: LT4 Vette
Nothing wrong with parts from China.



I have no problem with parts that are made in Chine as long as they are built with some quality control and to high standards. Unfortunately, since we as Americans (not sure about the rest of the world) expect and demand low price products. Therefore, we love China, and China loves us!

For example, the Alpine audio equipment that I installed in my car is all China made, however it seems that Alpines expects their products to meet a certain quality level, which still makes them a high quality product.
 
Originally Posted By: eljefino
Secret vendor? Muwahahahaha!

I got a hub/bearing for my silhouette off ebay for $35 or so from "Detroit axle" that was packaged "Dearborn Axle". Box had a Japanese sounding name but no country of origin. Well finished part. Sold the van before I can judge longevity.


=) Dearborn axle is the mentioned vendor. Depending on the day I get either Enkido (or something like that) bearings, or white boxes, or precision, or however they are boxed lol. They are local to use, they do TONS of reman axles and steering gears etc. The started carrying bearings a little while back.
 
I've come to find most of the parts out there for my car are my in china anyways.


Well, maybe not the oil filter...
 
I'm glad you guys are having such great luck with their mechanical parts.

Because their sheet metal is pure [censored]. The gauge of the metal isn't the same, the rustproofing isn't the same.

It doesn't fit as well. The tolerances and gaps are double in some cases. There's no way it can perform as well in a crash. And in a unibody vehicle (most cars) sheetmetal is critical in a crash.

Check to see if your insurance policy specifies aftermarket sheet metal.
 
It's more than just unions.
If you operate in a country where wages are well below developed world minimums, environmental and labor law standards are either absent or unenforced, and theft of intellectual property is an accepted practice, you're going to enjoy low costs.
If the developed world were to assess import duties on Chinese made goods to account for the abuses of both labor and the environment by Chinese manufacturing, as well as their penchant to steal others' development work, I think that the air would quickly be let out of the balloon that is the Chinese economy.
And no, I don't intend this as a political commentary, merely an economic one.
 
Originally Posted By: fdcg27
It's more than just unions.
If you operate in a country where wages are well below developed world minimums, environmental and labor law standards are either absent or unenforced, and theft of intellectual property is an accepted practice, you're going to enjoy low costs.
If the developed world were to assess import duties on Chinese made goods to account for the abuses of both labor and the environment by Chinese manufacturing, as well as their penchant to steal others' development work, I think that the air would quickly be let out of the balloon that is the Chinese economy.
And no, I don't intend this as a political commentary, merely an economic one.


Thank you for a senseable relpy. I am tired of hearing this, blame everything on the unions [censored]. Maybe we should get rid of our enviromental laws and start paying everyone $5 a day without any benefits and maybe we would get all of our manufacturing back. Stop blaming everything on unions. Corporations are just as guilty as the unions.
 
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Originally Posted By: MrCritical
Because their sheet metal is pure [censored]. The gauge of the metal isn't the same, the rustproofing isn't the same.

How is Chinese metal different (outside of gauge difference)? What rustproofing are you talking about?
 
Originally Posted By: MrCritical
I'm glad you guys are having such great luck with their mechanical parts.

Because their sheet metal is pure [censored]. The gauge of the metal isn't the same, the rustproofing isn't the same.

It doesn't fit as well. The tolerances and gaps are double in some cases. There's no way it can perform as well in a crash. And in a unibody vehicle (most cars) sheetmetal is critical in a crash.

Check to see if your insurance policy specifies aftermarket sheet metal.


Aftermarket sheet metal is [censored]. You are right, it does not fit well, doesn't have the same rust proofing, and so on. BUT, body shops use it like crazy because most insurance companies are ok with aftermarket sheet metal (state farm not one of them) as long as it is CAPA.
 
Originally Posted By: daves87rs
I've come to find most of the parts out there for my car are my in china anyways.


Well, maybe not the oil filter...


What parts are you talking about ? For which car?
 
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