GM May Move Volt Production to China

[stephen9666]

Note- I'm not writing this because I'm for or against the bailout/GM/the Volt. I just noticed that this isn't really a news article. It seems to be more of an opinion piece.


I would like to point out one thing about the article posted by the OP:

It is posted on Yahoo! News, but it's actually an article taken from The Blaze, which is Glenn Beck's news website.

Link to Wikipedia article on The Blaze.

The article clearly has an anti-GM slant, and it seems to be an opinion piece, not a news article. Also, the only quotes in it are taken from other articles. It seems the author took some news from somewhere else and put an anti-gm, anti-bailout spin on it.

Here is an example from the article:
Quote:
As per the arrangement, GM started exporting Michigan-made Volts to China. However, it is highly unlikely that GM will sell many of the unsuccessful vehicles.


Plus, no quotes or other info say Volt production would be moved from the US to China. It only says that Volts may be produced in China as a way to avoid tariffs on imported vehicles.

The article seems to be written in a way to make the reader think GM is moving volt production from the US to China, even though there is no info in the article proving GM is planning on doing that.

It's a strange "news" article, if that's what it is. It's written much more like an opinion piece.

Here is more of the article's opinion, that doesn't even seem to be disguised as news:

Quote:

Two final thoughts: First, considering that all of GM’s EV development was financed with taxpayer dollars, it seems perfectly reasonable that many people are upset with the car manufacturer. On the other hand, given what appears to be GM’s failure to develop a successful, affordable and stable EV, one might feel compelled to say of the Shanghai deal, “They can have it.”

Second, given the fact that Federal government helped itself to millions and millions of taxpayer dollars under the pretense that it was going to combat high unemployment by creating “green jobs,” it would seem that moving research and development (and possibly manufacturing) overseas is slightly, well, counterproductive.

 

[OVERKILL]

Originally Posted By: CivicFan
Originally Posted By: OVERK1LL
Originally Posted By: CivicFan
Reasons could be found in their annual report for 2010:

"China is now the largest vehicle market in the world, having passed the US in 2009"

https://materials.proxyvote.com/Approved...ar2010_0011.htm

Having closely worked with another prominent US company doing big business in China, Cummins, I can tell you that the intellectual property is two generations behind there. The IP sensitive parts are imported from the US and the IP is protected through the JV they set up. The Chinese government is then interested in protecting the Cummins IP. I am sure GM is no different.

While there is some truth to it, the theft of IP is way overblown and can be qualified as a myth with a small factual base.



Cisco had some pretty significant IP theft taking place in China. I wouldn't call that over-blown.... they are a pretty big company.


I have talked to the leadership of the Cisco operations in China. While IP theft was a concern, it is not as worrisome as media makes it seem. Cisco is quite successful doing business there.


I don't believe I said they weren't successful there, simply that IP theft was a concern, and Cisco "clones" are/were a reality.

There is a company called "Professional Products" which sells clone car parts. For example, they have an Edelbrock Performer RPM EFI intake clone for the 5.0L Ford that they call the "Typhoon".

IP theft and general "Rip off and Duplicate" R&D is a real issue. Perhaps not on the scale the media makes it seem, but I've seen enough of it first hand to know that it really and truly exists.

 

[Shannow]

Originally Posted By: Nick R
Because the chinese government won't allow it? iirc the only way for a car company to sell cars in china is to take part in a joint venture with a chinese company, and for most of the cars to be built in china. Blame the chinese government. And again, like I said before, it is HIGHLY UNLIKELY that ALL volts will be built in china. It will probably be the CHINESE MARKET VOLTS ONLY.


Probably basing it on the South Korean model where every sale requires a "technology transfer" from the western company to the company that does the construction.

 

[PandaBear]

Originally Posted By: Shannow
Originally Posted By: Nick R
Because the chinese government won't allow it? iirc the only way for a car company to sell cars in china is to take part in a joint venture with a chinese company, and for most of the cars to be built in china. Blame the chinese government. And again, like I said before, it is HIGHLY UNLIKELY that ALL volts will be built in china. It will probably be the CHINESE MARKET VOLTS ONLY.


Probably basing it on the South Korean model where every sale requires a "technology transfer" from the western company to the company that does the construction.


which also based on the Japanese model of "domestic only unless Luxury" thing.

Seriously, Chinese auto market is relatively open to import compare to Japanese and Korean.

 

[friendly_jacek]

Even Toyota doesn't build the last generation of prius in china due to technology transfer concerns.

Looks like Americans are blinded by a short term gain not to see the long term loss. The whole globalization and job outsourcing came back to haunt US but no one took notice or learned any lessons.

 

[KrisZ]

Originally Posted By: friendly_jacek
Even Toyota doesn't build the last generation of prius in china due to technology transfer concerns.

Looks like Americans are blinded by a short term gain not to see the long term loss. The whole globalization and job outsourcing came back to haunt US but no one took notice or learned any lessons.


As long as we, as in general public, can afford latest phones, electronic gizmos, are able to pay the minimum fee on a credit card and are kept "entertained" by Hollywood, nobody will notice a thing.

Outsourcing has been going on for about 50 years now, but because US had such a huge industry, even informed people did not notice it. Few experts tried to alert the public, but were quickly shut down as crazy conspiracy theorists or anti progress / globalization nut jobs.
Now that the castle is hollow and the walls are being removed, more people see what this globalization really is, but most will ignore it until everything is gone. The entertainment machine will make sure of that.

 

[CivicFan]

Originally Posted By: KrisZ
Now that the castle is hollow and the walls are being removed, more people see what this globalization really is, but most will ignore it until everything is gone. The entertainment machine will make sure of that.


Good analogy.

 

[Vikas]

The Tata Motors started by assembling the MB trucks. At first all the components were imported from Germany.

Today Tata trucks are exported all over the world. The conglomerate now owns Jaguar.

This is the model which every country wants to emulate. Tata needed half a century of hard work to reach this milestone. I am sure Chinese would be able to do it in lot less.

- Vikas

 

[mechanicx]

Originally Posted By: KrisZ
Originally Posted By: friendly_jacek
Even Toyota doesn't build the last generation of prius in china due to technology transfer concerns.

Looks like Americans are blinded by a short term gain not to see the long term loss. The whole globalization and job outsourcing came back to haunt US but no one took notice or learned any lessons.


As long as we, as in general public, can afford latest phones, electronic gizmos, are able to pay the minimum fee on a credit card and are kept "entertained" by Hollywood, nobody will notice a thing.

Outsourcing has been going on for about 50 years now, but because US had such a huge industry, even informed people did not notice it. Few experts tried to alert the public, but were quickly shut down as crazy conspiracy theorists or anti progress / globalization nut jobs.
Now that the castle is hollow and the walls are being removed, more people see what this globalization really is, but most will ignore it until everything is gone. The entertainment machine will make sure of that.


It seems that not only the majority of the public just doesn't care but is brainwashed by the media to support the globilization agenda. To them it is A-OK that Japan and Korea and everyone else protect their auto companies and markets and sell in ours. But these same people are very antagonistic to the Big 3 and scream protectionism if Domestics try to protect their market.

Could you imagine the Big 3 setting up shop in Japan and Korea's well establish auto market and hiring local workers at half the pay and taking over half the market while everyone sings how fortunate that is? Only in America.

 

[OVERKILL]

Originally Posted By: mechanicx

Could you imagine the Big 3 setting up shop in Japan and Korea's well establish auto market and hiring local workers at half the pay and taking over half the market while everyone sings how fortunate that is? Only in America.


You just had me laughing out loud sir! Well stated!

 

[GMBoy]

Originally Posted By: silverrat
Originally Posted By: Nick R
And again, like I said before, it is HIGHLY UNLIKELY that ALL volts will be built in china. It will probably be the CHINESE MARKET VOLTS ONLY.


On what information are you basing this on? How would you have this information? Probably is a cop out word.



Well - it already happens..remember Buick Regals being built in China just for Chinese markets---all the while they were built in North America for USA and other markets. The Chinese love Buicks and Escalades. I don't see GM pulling the Volt out of the shiny Hammtramk plant...but adding Volt production in China is doable and what will probably happen. The current Buick plant in China is flexible and could build the Volt as well...just as the Hammtramik plant build other cars along with Volt...NO brainer there.

 

[L_Sludger]

Originally Posted By: GMBoy
Originally Posted By: silverrat
Originally Posted By: Nick R
And again, like I said before, it is HIGHLY UNLIKELY that ALL volts will be built in china. It will probably be the CHINESE MARKET VOLTS ONLY.


On what information are you basing this on? How would you have this information? Probably is a cop out word.



Well - it already happens..remember Buick Regals being built in China just for Chinese markets---all the while they were built in North America for USA and other markets. The Chinese love Buicks and Escalades. I don't see GM pulling the Volt out of the shiny Hammtramk plant...but adding Volt production in China is doable and what will probably happen. The current Buick plant in China is flexible and could build the Volt as well...just as the Hammtramik plant build other cars along with Volt...NO brainer there.

Does it look to you as through the Hammtramik plant is unable to keep up with demand for the Volt, or does it look more like Chinese production and importation of the Volt would bring the average unit cost down enough to make the Volt a more profitable product overall?

 

[GMBoy]

Originally Posted By: L_Sludger
Originally Posted By: GMBoy
Originally Posted By: silverrat
Originally Posted By: Nick R
And again, like I said before, it is HIGHLY UNLIKELY that ALL volts will be built in china. It will probably be the CHINESE MARKET VOLTS ONLY.


On what information are you basing this on? How would you have this information? Probably is a cop out word.



Well - it already happens..remember Buick Regals being built in China just for Chinese markets---all the while they were built in North America for USA and other markets. The Chinese love Buicks and Escalades. I don't see GM pulling the Volt out of the shiny Hammtramk plant...but adding Volt production in China is doable and what will probably happen. The current Buick plant in China is flexible and could build the Volt as well...just as the Hammtramik plant build other cars along with Volt...NO brainer there.

Does it look to you as through the Hammtramik plant is unable to keep up with demand for the Volt, or does it look more like Chinese production and importation of the Volt would bring the average unit cost down enough to make the Volt a more profitable product overall?



At the current demand level for the Volt, the Hammtramik plant has no problem keeping up. While I don't know the whole deal, my best guess is that "if" they move production to China it will only be to build for the Chinese market like they do now...and they would still build the Volt in the USA as they do now. Remember, the Volt plant also builds other models so GM could easily add the Volt to a current plant in China to build the small number they need and to avoid all the unfair tarrifs that China charges yet the USA doesn't charge China...but that's a whole other topic lol.