Another GM Unit Is Gone

[Edward J.]

Re: Another GM Unit Is Gone

The fortunate aspect of foreign investment in the US is there's NO good way to repatriate real estate!

bottom line, all foreign investment in US business is NOT a bad thing...

Jack, the only problem is were all still reeling from the recession. when we need more jobs here in the USA.I know that we are looking for ways to be a competitor in the automotive market. It seems that we are out sourcing to much today.WE NEED TO FIND A SMARTER WAY.

[Chuck S.]

Re: Another GM Unit Is Gone

In the case of SSG, China is not so much making an investment in the US, as it is buying a portal to the automotive manufacturing that remains in the US, plus eliminating any prospect of future competition. It takes time to develop a manufacturing base, even from an educated work force...China did it in an incredibly short time period once they embraced capitalism.

I doubt that another dime (or is that Yaun?) will ever be invested in Saginaw, and those facilities in Saginaw will quickly be liquidated for whatever they can get. The reasons for Saginaw gears being non-competitive are the same for the Chinese as for GM.

As for a smarter way to get the ship righted...I can't see any way except Great Depression style deflation to drive down labor cost and the US cost of living.

[Jack H.]

Re: Another GM Unit Is Gone

Robots depreciate at the 'same' rate whether they're in the US or 3rd world. But, that doesn't restore the manual physical labor the robotics eliminated...

To compete effectively in a global environment, a product's finished cost HAS to be competitive with alternative source(s), assuming quality is equal. So, the days of making a jillion dollars/hour installing nut X onto bolt Y are dead & gone.

One solution is to 'run' to products that don't lend themselves to import. Eg. their transportation-in cost profile gives us competitive 'shelter'...

Another solution is to re-tool and do those things that we CAN do competitively given our 'fat' labor rates (applies to BOTH labor and management). When we have something 'new' that's protected by patent, Etc., we CAN charge the going rate and compete in the world market.

So, how do we create 10-20 Bill Gates and/or Steve Jobs each generation until the baby boomer 'bulge' has 'passed' through the system? Ahh, that's a good question...

Figure job creation where Americans are forced to take a +50% pay cut to be competitive with 3rd world labor is NOT a viable solution! AND, those 3rd world workers are no longer simply a manual labor supply.

They HAVE engineers, technicians and skilled workers too. They're pretty darn well trained. The personal computer and internet have 'equalized' the playing field. They can/do innovate. And, they want to eat our lunch!

Too many of our youngsters don't get it. They AREN'T power booking it at school to compete effectively in the future. It's too darn easy to look at the fellow drop-out who's dealing drugs and making big $$$ that's an EASY grab.

But, nobody is really telling 'em that dealer's future is SHORT and the money made isn't really his. He can't legally re-invest it because it's subject to confiscation upon detection/capture!

Whatever paltry $$$ his honest, hard working, contemporary makes slinging burgers at the local hamburger stand, that money IS his! The truth is hard to sell, but the story is easy to tell...IF we educate the next generation(s) effectively...

[Michael F.]

Re: Another GM Unit Is Gone

They already own us. They hold most of our debt. That's why they've been bitching so much about the spending, and are criticizing us at the G20 summit.

Yes , and they are playing us for the fools we are. They know how unbalanced things are.They may be giving us hell at the G20. But they are also laughing at our lack will to put them in their place.

Trump had a great idea. Tax ALL Chinese imports @ 25% to balance out the currency fiascos.

[Clem Z.]

Re: Another GM Unit Is Gone

when i retired from my "real" job i took a lump sum settlement because i did not trust the company's retirement plan to have money down the road. i hope i run out of $$$ and breath the same day. i always said you can not pay workers more per hour to build a product than the people who buy the product make per hour. JMHO

[Roy V.]

Re: Another GM Unit Is Gone

One of the products touted was Harley Davidson motorcyles.

Now that's a vision...A Singh in a turban on a Hawg, riding along, soothed by that rumpetey-rumpetey sound that's so familiar to us. I wonder how motorcycle boots will go with their traditional garb?

But, what's wrong with this picture? India has no history with the Harley. They will probably think that irregular heart beat is a defect. But, with the locals building the Little White Water Buffalo for a tenth of a Harley, WE will probably be hearing more high-pitched two cycle sicles in our future. And, poor Harley...they'll become even more of a nostalgia niche business until they're gone.

Harley Davidson to open a assembly plant in India

http://thekneeslider.com/archives/2010/11/02/harley-davidson-will-build-assembly-plant-in-india/

[Clem Z.]

Re: Another GM Unit Is Gone

Harley Davidson to open a assembly plant in India

http://thekneeslider.com/archives/2010/11/02/harley-davidson-will-build-assembly-plant-in-india/

the cost of shipping completed M/C to india would be a costly endeavour with the price of energy going up in the future. shipping parts in bulk should be cheaper. a lot of the H/D parts are made overseas so it would save $$$ there.

[Bruce B.]

Re: Another GM Unit Is Gone

As a GM retiree who is receiving the gift of $300./mo, I must clarify that it comes from the retirement fund and is therefore fully taxible income and serves to deplete the fund further. With the left over amount, I was able to replace my supplemental healthcare coverage for $362.50/mo, and added my Part "D" prescription drug coverage for $70.20. Such a deal, specially looking forward to the significant increases in premiums for 2011 and beyond.

Stu Fox

Stu.
Don't forget to add to your costs the $100+ per month for Medicare, but you can subtract yor SS cost of living adjustment for 2011.
Woops, I forgot there is not going to be one...AGAIN.
Bruce B

[Joe L.]

Re: Another GM Unit Is Gone

All------


I think that Saginaw/Nexsteer is a lot better off with owners from China than they would be if they had fallen into the hands of a New York-based "hedge fund".

[Paul J.]

Re: Another GM Unit Is Gone

Harley Davidson to open a assembly plant in India

http://thekneeslider.com/archives/2010/11/02/harley-davidson-will-build-assembly-plant-in-india/

Earlier this year we found out through the grapevine that HD was going to close part or all of the manufacturing operations in Milwaukee, and they were searching for another location in the U.S. As you probably know, sales are way down. Their union was invlovled because we were told that our State was excluded from the search because we were a "Right-To-Work" State. We figured that this was just a ruse, as companies will sometimes threaten to move to get consessions from unions. However, it looks like they could'nt completely work it out with the union. The union had better watch out, or HD could a lot more production off shore.

For you purists, a lot of Harley parts like shocks and electronics have been made in Japan and Taiwan for the last 20 years. Clutch discs are made in the U.S., but by a Japanese company.

By the way, India has been building Royal Enfield motorcycles (under the name of Bullet) since 1955. I can't give you exact numbers, but the European and Asian markets for Harleys have been growing steadily over the past 20 years, and was supplied by the three U.S. plants. It appears now that India will meet this demand.

[Bryan M.]

Re: Another GM Unit Is Gone

All------


I think that Saginaw/Nexsteer is a lot better off with owners from China than they would be if they had fallen into the hands of a New York-based "hedge fund".

I'm with you Joe.
Chinese = invest and grow
Wall Street = Rape and Pillage.

[Rob M.]

Re: Another GM Unit Is Gone

Jack, I totally agree, and from an European perspective we are trying to outsmart the Eastern countries as well but it is getting more difficult every year because these guys get smarter and smarter as well (so we aren't competing with cheap labor alone)...

We need to be smarter and start more companies like Apple, MicroSoft, Google and other high end industries like nano-technology, gen-technology, green technology, etc. etc.

But the biggest thing we should do is "STOP LOOKING BACK, STOP COMPLAINING AND BE SMARTER THEN THE COMPETITION".

Also closing your market is most stupid thing to do. Expand, trade, invent, patent, be a real entrepreneur and live the "American Dream"!!!

[Dick W.]

Re: Another GM Unit Is Gone

Reading an article in Harvard Business Review last evening about inovation. Inovation was what US business was built on, but it seems that a lot of today's inovation comes from places we never gave a thought to, such as S. Africa, some of the islands. The US is asleep at the wheel, and has been for quite a few years. It is not any political party's fault. We are behind most major countries in education, both in program content and the number of hours spent on primary education. We graduate high school students that cannot do enough arithmitic to make change from $1.00 unless they have a calculator. We lack basic skills education as well as advanced education.

If your work force is uneducated, do not expect jobs any better than "do you want to supersize that order" or "welcome to .......".

[Paul J.]

Re: Another GM Unit Is Gone

If your work force is uneducated, do not expect jobs any better than "do you want to supersize that order" or "welcome to .......".

But they're making $7.50/hr to say that. What's the wage rates in the emerging countries with which we're competing?

[Chris G.]

Re: Another GM Unit Is Gone

yesterday the Comander in Cheif was fawning all ove India telling them and us how great they are and how they are helping out the whole world with their call centers. He sees great things with further cooperation between or contries. I guess they will be importing thousands of our products. Or will it be our jobs?

Obama also wants to draft a free trade agreement with India. I guess he has seen how rich Bill Clinton got from NAFTA and wants part of the action even though he has publicly condemned Bill's "Free Trade Agreement"