American Technology and Taxes Build Automotive Industry in China!
Have American Technology and Tax Dollars Transformed GM (General Motors) into CM (China Motors)?
In 2009 Barack Obama used tax payer funds to bail GM out of bankruptcy and set it on the road to solvency. Yet, with millions of underemployed and unemployed Americans hoping to find work our hard earned money, was somehow rerouted to China? As Detroit, the headquarters of GM continues to crumble, the Chinese industry of this multinational company thrives!
So GM opened a plant in Wuling, China, where American research and development for car design was moved!
Sure GM set a sales record in China for 2011, because it sold a vehicle every 12 seconds, but if the merchandise was made in China, how does this help the U.S. economy? Moreover, why must the already stressed out American taxpayer be stuck paying for Chinese success?
To understand just what is built and where, check out these facts, courtesy of autoblog.com:
Who Builds What Where? (as of 6 Oct. 2010) Ford’s Fusion, Fiesta, and Lincoln MKZ models are built in Mexico, while the Edge, Flex, Lincoln MKX, and Lincoln MKT are built in Canada. Other North American models are built in the U.S.
According to NHTSA documents provided to AOL Autos, Ford’s compact Focus is assembled in Wayne, Mich., with 90 percent of its parts sourced from the U.S. and Canada, but its transmission originates in Germany. While the Taurus is assembled in Chicago, Ill., about 65 percent of its parts are of U.S. origin. But its engine and transmission are both built in the U.S.
The F-Series pickup truck, that most iconic of domestic vehicles, is assembled in Kansas City, Missouri, and Dearborn, Michigan, but with just 55 percent of parts made in the U.S. or Canada. More than 15 percent of its parts come from Mexico, although all of its engines and both transmission systems are built in the U.S. Some transmissions for the Mustang (assembled in Flat Rock, Michigan) come from China.
GM vehicles assembled in Canada include Chevrolet’s Camaro, Equinox and Impala and the GMC Terrain, while vehicles built in Mexico include Cadillac’s SRX and Escalade EXT, Chevrolet’s Aveo, HHR, Silverado, and GMC’s Sierra. GM vehicles built in the U.S. include Buick’s LaCrosse, Lucerne and Enclave, Cadillac’s CTS, DTS and STS-V, Chevrolet’s Cruze, Corvette, Malibu and Tahoe, and GMC’s Yukon.
According to figures from IHS Global Insight, of the GM vehicles assembled domestically, several Corvette engines are built in Canada, with several transmission variants originating in Mexico. Its Chevrolet Silverado (assembled in Fort Wayne, Indiana) carries U.S.-built engines across all models, but several transmissions are built in Mexico. For the Cadillac CTS assembled in Lansing, Mich., several engines originate in Canada and Mexico, and the transmissions for various models in the CTS range come from Japan, France, Mexico, and the U.S. Some engines for GM’s Chevrolet Cruze, assembled in Lordstown, Ohio, come from Szentgotthard, Hungary.
Chrysler says about 61 percent of the components it uses for its Chrysler, Dodge and Jeep lines come from the U.S., while about 20 percent come from Mexico and Latin America, about 10 percent from Canada and just under 10 percent from the rest of the world. It maintains large production facilities across the U.S., but also builds its 300 and Dodge Challenger and Charger, in Canada, and the PT Cruiser in Mexico.
Of the Big Three’s foreign competition, Toyota, Honda, Hyundai and Kia all proudly trumpet their domestic-built credentials. (Honda was the first Japanese carmaker to build a car plant in the U.S., in Marysville, Ohio., in 1979, and more Honda vehicles are now built in the U.S. than in Japan.) Toyota builds its Camry and Avalon models in Georgetown, Kentucky, its Sienna and Highlander in Princeton, Indiana, and has large plants in Huntsville, Alabama, and San Antonio, Texas. Hyundai builds the Sonata and Elantra in Montgomery, Alabama, and shares a plant in West Point, Georgia, with Kia, which recently celebrated the 100,000th Sorento rolling off that line.
Nissan and VW both have longstanding ties to Mexico, with plants in Aguascalientes and Cuernavaca (Nissan) and Puebla (VW). Nissan assembles its small cars like the Versa in Mexico and its larger truck and SUV lines in Smyrna, Georgia. VW imports all its vehicles into the U.S., though it will be opening a new plant in Tennessee.
Mercedes-Benz assembles its ML-, R- and G-Class vehicles in Vance, Alabama, with a U.S./Canadian parts content of 62 percent, but both its engines and transmissions are unsurprisingly sourced from Germany. BMW, meanwhile, assembles its X-series SUVs in Spartanburg, South Carolina, with mostly German componentry.
Electric carmaker Tesla’s bodywork is completed by Lotus in England, and then shipped to California for assembly. It will jointly develop electric cars with Toyota at the NUMMI plant in Northern California.
In an article published in the US Action News on 13 Aug. 2012, by Dr. Ileana Johnson Paugh, the U.S. Chamber of Commerce, GM’s one billion dollar bid from China was won in exchange for,
GM’s willingness to transfer a good deal of state-of-the-art technology.
Furthermore, to make matters worse, Dr. Johnson Paugh points out that
the Obama Administration is planning to increase the new car mileage standards from 35.5 miles per gallon to 54.5 miles per gallon which will cause further pain for Americans. According to the National Highway Traffic Safety Administration (NHTSA) the new mileage requirement will add $3,000 to $4,800 to the average price of new vehicles until 2025. The National Auto Dealers Association (NADA) said that 6-11 million low-income drivers will not be able to afford new cars through 2025. Because of the new “corporate average fleet economy” (CAFÉ) standards, cars will have to be made smaller, less safe, resulting in more potential fatalities with each crash. The Smart Car may be smart in theory.
The idea behind the new standards was driven by the “green” environmentalist agenda who proposed to eliminate the use of fossil fuels and replace them with renewables because fossil fuel burning destroys the planet, and we are running out of oil and gas reserves. That is of course, not the case, the Obama Administration tried to purposefully increase our dependence on foreign oil by imposing moratoriums on drilling in the gulf, refusing the approval of the Keystone XL pipeline, and denying permits for the exploration of domestic shale oil on federal lands. Furthermore, he promised to bankrupt the coal industry and make electricity prices skyrocket. Dr. Johnson Paugh, 13 Aug. 2012, usactionnews.com
If top down collectivism is so great, then why must the Chinese demand American technology with every deal they have signed since 1990? Promise are big profits from access to their huge population, but I guess that takes more time. Meanwhile, Americans also need work, but how can we compete with China’s low wage, highly controlled labor force? Yes, we live in an international market but, why do left wing elitists consider it acceptable for American taxpayers to be sucked dry by globalist vampires who promise much, but deliver nothing? Ok, so GM was essentially nationalized through the Obama bailout, but US citizens have yet to see any fruit from this investment. Instead, what we do see are more recalls, then at anytime in GM’s long history. With 7 out of 10 vehicles manufactured in China, what are we to conclude about quality control in communist centralized economies?
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General Motors Recall List – As of 22 July 2014