After Receiving Bailout, GM May MoveVolt Production to China

Discussion in 'General Discussion' started by Quigley_Sharps, Jan 6, 2012.

  1. Quigley_Sharps

    Quigley_Sharps The Badministrator Administrator Founding Member

    Although it happened back in September, 2011, it appears many American taxpayers are unaware that General Motors struck a deal in Shanghai wherein the company has agreed to develop an electric vehicle (EV) platform with its longtime Chinese partner SAIC.
    What else was included in this deal? GM has agreed to effectively move all future EV development to China. It could also mean that production of the vehicle itself will be moved overseas.
    The agreement is the result of the Chinese government coercing foreign automakers into giving Chinese companies the EV technology they lack, according to an Associated Press report. Unsurprisingly, some U.S. lawmakers have voiced concerns that the deal is little more than a “shake down” from the Chinese to get GM’s Volt secrets. GM has denied reports that it will hand over the intellectual property underlying the Volt.
    GM Vice Chairman Steve Girsky, in a conference call from Shanghai, said that neither SAIC nor the Chinese government have demanded Volt technology but that any future EV developments would, of course, draw on GM’s Volt “experience and technology,” according to a USA Today report first published in September, 2011.
    Under the deal, SAIC and GM will equally share the cost of developing a new all-electric vehicle, Girsky said.
    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.
    “The Chinese government is pushing electrics with a subsidy that amounts to about $19,000 per car — but only if the car is made in China. No imports allowed,” writes Chris Woodyard of USA Today. “There also are tariffs on cars imported to China, which lawmakers argue are unfair and may violate world trade rules.”
    But, as mentioned in the above, what has some people truly upset is the fact that Girsky hinted that the Volt could eventually be built in China.
    “If we localize, eventually it won’t have a tariff and it will get the subsidy. We have made no decision on if, when or where we build Volt in the future,” Girsky said.
    USA Today further explained China’s quest for EV technology:
    The push for more advanced technology reflects China’s frustrations with its continued weakness in automotive technology, analysts say. After 25 years of auto joint ventures that require local partners to hold at least a 50 percent stake, domestic automakers still lag behind global rivals in automotive engineering.
    “China is not a technology leader in virtually any industry. The country has developed around low-cost production,” said Bill Russo of consultancy Synergistics. “This is the irony, that the largest and biggest growth market has relatively weak domestic manufacturers.”
    It was because of the sudden growth in Chinese demand and faltering sales in the recession-stricken West that China was able to surpass the U.S. as the largest car market in 2009. Just this year, sales of passenger vehicles, excluding large buses, jumped by a third to 13.7 million vehicles.
    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.
  2. Redneck Rebel

    Redneck Rebel Monkey++

    Yep, typical media. Crucify GM for the Chinese attempting to shake them down. I know, I know, GM's about as easy to hate as Muslims but while GM's been lambasted has anyone ever stopped to think of some things?? Chrysler was bailed out once before, why the **** did we bail them out again? Chrysler with approval from the morons in DC sold out to the Italians. Or how about this, quit blaming GM and start demanding the retarded zombie morons in DC level the ****ing foreign trade playing field so that us Americans can have some g-d manufacturing jobs? Vote for someone with the stones to tell the Chinese to get ****ed, vote for someone with the balls to force the Chinese to pay up on the bonds it screwed American citizens over on. I'm sick and tired of the g-d Chinese getting the whole untouchable Israel treatment.
    Seawolf1090 likes this.
  3. Espada

    Espada Monkey+

    "Vote for someone with the stones to tell the Chinese to get fuked, vote for someone with the balls to force the Chinese to pay up on the bonds it screwed American citizens over on. I'm sick and tired of the g-d Chinese getting the whole untouchable Israel treatment."<!-- google_ad_section_end -->

    I guess that would eliminate Ron Paul. And put the spotlight on somebody who said he would immediately upon election install John Bolton, a$$kicker extrordinaire, as Secretary of State.
  4. larryinalabama

    larryinalabama Monkey++

    GM has been building engines in China for several years now. As far as I know hydromatics are made in Japan or in US, thats likey to change if it already hasent.
    During the GM Bankruptcy our local dealer had his franchise pulled even though it was profitable for over 35 years. So I say screw GOOBERMENT MOTORS.

    China and India have become major auto producers, if the US would let imports come we could buy new small cars and small trucks for arouynd 8000$US, just like the days when we could buy Toyotas on the cheap. I realize the US is on the push for US made goods, but I can assure the good old days are long gone.
  5. ColtCarbine

    ColtCarbine Monkey+++ Founding Member

    Almost every vehicle I have owned the last 30 yrs. has been a GM/Chevy truck or car, up until the bail out. My last 2 vehicle purchases were Ford's.

    Government Motors can piss up a rope.
  6. Seawolf1090

    Seawolf1090 Retired Curmudgeonly IT Monkey Founding Member

    They've already sent the Hummer production to China. Most folks don't realise, the trade laws are written very much in China's favor - deal with them, you are bound by law to provide them the full tech specs and design for the product, so they can copy it entirely. It amounts to giving them all your high tech capability - win-win for China. That law needs to change.
    bountyhunter likes this.
  7. radpug

    radpug Monkey+

    Never forget the chylser bail out back in the 80's and
    The GM bail out are no where near the same.

    The bond holders were out of their money.
    The suppliers were left hanging
    The none union made Saturn factories were shut down.

    GM should have went threw normal bankruptcy.
    Different rules for different companies.

    There are GM cars in my drive way, when they get replaced
    Then there will no be.
  8. ColtCarbine

    ColtCarbine Monkey+++ Founding Member

    Likewise, I have a '73 K5 Blazer that I'll probably never get rid of. There is a place in my heart for almost anything with a SBC 350. The only way GM will ever see any of my money is through a parts supplier. Unfortunately, for them there are so many aftermarket parts available that they might not see one red cent.
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