GM Wins Approval to Build $1.3 Billion Cadillac Plant in China

[Dreamer Tatum]

GM to Make Cadillacs in China


Gee, glad they got bailed out...

[MineralMan]

1. The cars will be sold in China, not in the US.

It's a way to bypass their import tariff. It's important to read the whole thing. US automakers build cars all over the world, often to serve local markets where the cars are built, not to import cars back into the US.

[kona808]

4. And once the plant goes into full production what's to keep them from exporting

those cars to North America?

Just look at the economies of producing in China what with labor costs.

And 1.3 billion for a plant? Intel is just opening a 5 BILLION dollar plant in Chandler AZ. to make chips. 5 BILLION!

Cost of doing business just got lower for GM.

[MineralMan]

7. Why would they do that. They build for the US market

right here. China has huge potential as a market for autos. They're trying to take advantage of that market.

GM has plants all over the world. That's what successful auto makers do.

[Fumesucker]

8. They'll do it in a heartbeat if they can make more money building overseas and selling here

Just like you bought a Kia because it better suited your wants/needs.

[MineralMan]

9. Not when they have a growing market to sell into.

As for my Kia, what is it to you? I bought the car that fit my needs and budget. There were no US-made cars that fit both. I looked. Like everyone else, I buy what works for me, not what doesn't.

Please find someone else to bother. You're making no progress with me.

BTW, GM has a design center and connections in South Korea, too. Just like everyone else.

[Fumesucker]

13. I acknowledged that the Kia better fit your needs

I actually agree with your decision, you did the right thing for you.

Which is why if GM can make more money building in China for the US market they'll do it just like I said, nothing personal just bidness.

[MineralMan]

15. It won't make sense from a business perspective for them to

build in China and ship here. That's why they're building in China for the Chinese market, just as other car makers are building here for the US market. Auto companies are international these days, and that's not going to change. They're all building cars where they'll be sold.

While my particular Kia was built in South Korea, other Kia models are built in the US. Will they start building the Soul here? I don't know. Odds are that model will disappear in a few years and be replaced by something else, which may well be built by Hyundai/Kia in the US.

When I go looking for my next car, I'll just follow the same process I did with this one. Then, I'll buy the car that matches my needs, budget, and other criteria.

[Fumesucker]

17. It will be a bidness decision, made strictly on the merits

If they can make more money building in China for the US domestic market that's exactly what they'll do. I have no idea whether it will be more or less profitable for them but that's what will drive any decision either way.

It all comes down to a matter of costs and profits.

[kona808]

11. Why would the entire US electronics and textile industries have moved to lower wage

and regulated countries?

Hmmmm, let me think about that for a sec.

In GM we trust, I guess.

[MineralMan]

12. We all know why. But, as is pointed out in another post

in this thread, Intel is building a large new plant right here in the US. Some companies are finding new ways to expand here. We should be encouraging them to do just that. GM's not doing terribly in the US, either.

[SpartanDem]

14. 1. the UAW 2 the Chinese versions not exactly like their NA counterparts

the Chinese Buick La Crosse has a completely different interior and engine models despite looking pretty much the same.

[JoePhilly]

6. The whole article is only about 12 sentences ... you'd think the point

you made would be in the OP.

Another example of "all news is bad news" around DU lately.

[ForgoTheConsequence]

2. You should be glad they got bailed out.

It saved a lot of jobs. These cars will be sold in China not the US. It would be cool if we could export Cadillacs to China right now, but yeah....that's not going to happen anytime soon.

[MineralMan]

3. GM sold over 30,000 Caddys in China

last year, but that's not competitive with European automakers, who are already building cars there. Bypassing the tariffs will help a lot. Some people just have to complain about everything. A healthy GM is good for the US. A bankrupt GM hires no American workers, so the bail out was essential. Haters gotta hate.

[HiPointDem]

18. saved jobs? lol.

Softened up by two decades on the defensive, the UAW agreed to the Treasury’s watershed demand that GM and Chrysler “make every effort to achieve labor cost parity with the [non-union] transplants,” a demand that essentially negates the right of workers to better their lives through collective bargaining. According to the final agreement, all new-hire wages would be cut in half to around $14.50 an hour, a tiered wage system (second- and third-tier wages, along with flex, temporary, and contract workers) would be normalized, and a six-year wage freeze and strike ban for all Chrysler and GM workers would go into effect immediately.


http://jacobinmag.com/2013/04/imported-from-detroit/

[Spider Jerusalem]

5. They're building cars for the Chinese market

GM has plants in the UK, in Germany, in Australia, building cars for local markets...why not China?

[A HERETIC I AM]

10. They have been building Buicks there for 14 years....

and sell more Buicks in China than they do in the US. They have been selling them there for decades.

http://media.gm.com/content/media/us/en/buick/company_info/_jcr_content/rightpar/sectioncontainer_3/par/download_0/file.res/Buick_in_China_Overview.pdf

[NightWatcher]

16. Start building a Bumper Factory here to sell them replacements

once they rot and fall off.

The bumper WILL fall off or rot, they have done so for 60+ years. Since the '90's the window power motors have failed at an insane rate as well.

Cadillac's motto should be " Drive a Caddy, they're fun for two whole years"