GM may add plants overseas

Toyota/Honda/Nissan build plants here while GM (Detroit) closes plants here and builds plants outside the US
GM may add plants overseas http://www.detnews.com/apps/pbcs.dll/article?AID=/20071019/AUTO01/710190367/1148
General Motors Corp.'s fast growth in foreign lands may soon force the automaker to add and expand factories around the globe, the company said Thursday.
Despite its struggles in the critical U.S. market, GM reported a 4 percent increase in global sales for the third quarter. The automaker sold a record 2.4 million cars and trucks.
GM has worked to grow in emerging markets without pouring money into new factories, which can be a risky venture fraught with uncertainty.
But demand is putting pressure on operations in the fastest-growing regions, including several Latin American countries, GM analysts Paul Ballew told Wall Street investors in announcing the numbers.
Ballew said GM is looking to grow in a number of markets.
"We're going to have to add capacity going forward," he said. "We're going to add that capacity with an eye toward being flexible globally and making sure we can be lean.
"We're not going to go through a plant-building craze just to add capacity because we think the industry's going to surge."
Ballew said GM will end the year with sales up a few hundred thousand vehicles from 2006. Globally, he predicted the market will be up 3 percent and continue to grow.
Already, the automaker is investing $300 million in a new car assembly plant in Russia near St. Petersburg, where it will build the Chevrolet Captiva, a midsize crossover SUV. Sales in Russia were up 75 percent in the third quarter, with 65,700 vehicles sold.
For the most part, however, GM has dealt with the growth by adding shifts and workers to plants and launched joint ventures with local automakers, but often hasn't had to build entirely new factories.
"So much uncertainty goes into a global emerging market, you never can be too careful," said analyst Rebecca Lindland of Global Insight Inc. "The strategy that can be applied to more established markets can't be applied in emerging markets."
Automakers have little control over government or regulatory policies in foreign lands, which can vary greatly from one country to another. Currency issues, volatile commodity pricing and economic and political instability can complicate matters.
"The risk associated with spending $1 billion in the United States compared with spending $1 billion abroad is very different," Lindland said.
GM's sales increases included a 22 percent jump in Latin America, Africa and the Middle East. Sales were up 16 percent in the Asia Pacific region and 15 percent in Europe.
The increase marks six consecutive years of growth in GM's worldwide operations.
GM has been working to develop Chevrolet as its chief global brand, selling 3.4 million worldwide this year with sales up 3 percent year to date.
"It's a brand we're just starting to invest in," Ballew said.
In the United States, Ballew said, October sales are shaping up similar to last month, when GM sales were up 4 percent year-over-year.
GM has been working to bolster sales outside the United States in order to become less dependent on the American market, where sales have struggled amid increased competition and stagnant overall demand for new cars and trucks. North American sales were down 6 percent.
The growth in those outside markets, however, isn't enough to offset losses in North America, where car buyers tend to prefer larger, more expensive vehicles.
Ballew said bolstering sales in the United States remains the automaker's top priority.
GM ceded its spot at the world's No. 1 automaker to Toyota Motor Co. in this year's first quarter, the first time in history the Japanese carmaker outsold GM. GM outsold Toyota in the second quarter, but not by enough to take back the No. 1 spot. Through the fist six months of the year, Toyota has outsold GM by about 39,000 vehicles.
Toyota expects to release its third quarter sales figures next week.
GM shares rose 3 percent, or $1.21, on Thursday, to close at $39.89.
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Your premise is flawed, read the article. The fact is the while the brands you list assemble SOME of the vehicles they sell in the US in North America the majority if what they sell in the US, over half, are made in countries other than the US. GM on the other hand makes 80% of what they sell in North America, in North America. .
What GM is taking about is building small and midget cars in counties where small cars and midget cars are primary, so it can compete with the small and midget cars sold in those countries and can be imported into North America to compete with the small and midget cars IMPORTED by the Companies you listed. Toyota for example sells small and midget cars in counties where GM does not, and GM wants some of that market
mike

http://www.detnews.com/apps/pbcs.dll/article?AID=/20071019/AUTO01/710190367/1148
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Mike Hunter wrote:

What GM makes in the US declines with each passing month. GM is heavily dependent on sales outside the US to offset its faltering US operations. If the new Malibu fails to sell well GM is in serious trouble let alone if gas prices escalate along with oil prices.
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Even if what you personally believe was actually true, you seem to forget GM currently out sells any of the import brands in the US
mike

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Oh geez... more trolling from Mike.
Just keep putting your head in the sand and keep telling yourself that GM *isn't* in deep shit if it makes you feel better. Still won't make it true.
nate

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Come on, Nate. You can't possibly believe Hunter is a bigger Troll then Higgins?

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At least Higgins simply posted a factual news article. But they're both right up there.
nate
80 Knight wrote:

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replace "roosters" with "cox" to reply.
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Oh, I fully agree they are both a few cans short of a 6-pack. The only reason I don't like Higgins is 99% of the time, he posts articles bashing GM, in the GM newsgroup, and contributes nothing else to the group. This is supposed to be a group where people help each other, and I don't think he has any interest in doing anything other then pissing people off. Hunter...well, he's just Hunter...

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80 Knight wrote:

Facts hurt 80?
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Even notice that one persons opinion of a posts differs from another's, all of a sudden that person becomes a troll? What next resorting to vulgarities? What I posted was not an opinion however, I simply pointed to the facts in the news item, that GM was expanding production ourside the US, for markets outside the US. LOL
mike

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Oh geez... more trolling from "N8N"
You are free to believe whatever you chose. Apparently what you believe is true in your world. GMs, sales, income and the stock price are all up in the real world, however ;)
mike

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I ain't trolling, just wish you'd get a grip on reality. GM has been in a decline since the early 70s and any recent sales increases are just that, recent. The big trend is declining sales and declining market share.
The fact that your posts consistently demonstrate that you don't know shit about anything doesn't help.
nate
Mike Hunter wrote:

--
replace "roosters" with "cox" to reply.
http://members.cox.net/njnagel
  Click to see the full signature.
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Better do a bit of research if that is what you believe. What you fail to understand is the market in the US is the largest in the world and it has grown dramatically since the sixties when GM sold nearly 50% of the market and import sales began to grow. The number of vehicles sold today has more than doubled. The market peaked in 2004 at nearly 19,000,000, currently it is down to a bit at over 16,000,000, but that is more than twice what it was in 1978 when the market reached 8,000,000.
GMs current share price of around $40 is about what it was in 1960 and there have been two stock splits since that time, making ones initial GM investment worth three times the amount invested. GM has never missed paying a dividend to its shareholders.
At its current market share, GM is selling more vehicles than it did back then. Whether you like it or not, GM is still number one in sales in the US, outselling every import brand.
If you don't like GM and it products, that's your privilege but then why do you post derogatory comments in a GM NG?
The fact that your posts consistently demonstrate that you don't know shit about anything doesn't help. ;)
mike

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Mike Hunter wrote:

That might be GM in an Alternate Universe located in Far, Far, Away Mike but not in this universe:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20071019/AUTO01/710190367 "...GM's sales increases included a 22 percent jump in Latin America, Africa and the Middle East. Sales were up 16 percent in the Asia Pacific region and 15 percent in Europe.
The increase marks six consecutive years of growth in GM's worldwide operations. "
http://www.msnbc.msn.com/id/21366024 / "...In the US, GM sold 1.05m vehicles in the third quarter, *down* [emphasis added] 6 per cent on last year. It attributed the drop to its reduction of sales to rental fleets and market softness caused by higher fuel prices and concerns about housing."
Face reality Mike, while GM worldwide is indeed up GM in the US is down. If the redesigned Malibu tanks then GM will be down even more in the US.
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You are free to believe what ever you chose, but virtually ALL of the current players in the US market are down, including Toyota. The market today is down around 3,000,000 vehicles from 2004.
The fact remains, whether you like it or not, based on sales year to date GM continues to out sell all others including every import brand in the US.
mike

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General Motors once had a 60% share of the U.S. market.
By 1980, GM's split of the market had fallen to 46%.
The modern failures to stop the descent begins with the GM management change in 1992. The reigns of Chief Executive Jack Smith and his successor today, Rick Wagoner.
1991     35.0% 1992     34.1 1993     33.5 1994     33.2 1995     32.8 1996     31.5 1997     31.3 1998     29.4 1999     29.4 2000     28.2 2001     28.3 2002     28.6 2003     28.3 2004     27.5 2005     26.2 2006     24.7 2007 23.1 2008 19.7*
* estimate
The end is near
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Perhaps in your world ;)
mike

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Don't just say "nuh-uh," prove him wrong.
Or continue to not have any credibility, I don't care either way.
The truth is, GM has a reputation for making unappealing products, and they're not pushing the few interesting new cars they sell (I haven't seen a single ad for the Pontiac G8 for example.)
nate
Mike Hunter wrote:

--
replace "roosters" with "cox" to reply.
http://members.cox.net/njnagel
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