Chyrsler To Build Overseas and Toyota Builds In America - DCX Not American, Toyota Is

Chyrsler To Build Overseas and Toyota Builds In America - DCX Not American, Toyota Is

Chrysler looks at building cars abroad

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DaimlerChrysler AG's Chrysler Group is in talks with other automakers about contracting out production of a subcompact car which Chrysler would sell domestically as well as overseas. ...

-- NSA: If you know, we know.

Reply to
Jim Higgins
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Ouch!!

The re-badged Mitsus were bad enough. Now we're going to have Chinese cars?!?!?

--= DJ =--

Reply to
DJ

That would look hilarious - a cargo ship loaded with Avalons headed to Japan passing a cargo ship loaded with Dodges headed to the US ; )=)

Reply to
frenchy

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"Chrysler wants to add a subcompact to its U.S. lineup -- a car smaller than the Dodge Caliber -- but can't produce one at a low enough cost to generate a profit."

I would have thought that the article would have touched on why the car in question could (or couldn't) be built in Canada - instead of a developing country (the huge appreciation of the value of the CDN dollar is presumably altering quite a few manufacturing plans).

What's really strange is that Mexico isin't mentioned as a possible manufacturing location for this car.

Why has the buzz grown so loud over auto manufacturing in China?

What - is Mexico all tapped out? Or are there some intrinsic problems (that aren't widely reported) about making cars in Mexico... ?

Reply to
MoPar Man

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People still do not have a clue about Chinese manufacturing.

Keep this in mind. Up until a few years ago China had nothing for manufacturing capability. So just about all the machine shops and stuff over there that is churning out products today is running off assembly and CNC machines that are literally state-of-the-art since they were bought within the last few years.

It is not like the US where an established production company has millions tied up in 10 year old tooling and production machines that they need to squeeze the last bit of work out of in order to justify the initial purchase expense to the investors.

This is why, for example, that very advanced technology like personal satellite phones are common in places like China. Since they had no prior infrastructure, they wern't concerned with making everything backwards-compatible. They jumped from stone knives and bearskins directly to the Utopia Plenecia starship shipyards in the space of a few years, without all that tedious mucking about with intermediate technology that we did in the US.

Ted

Reply to
Ted Mittelstaedt

Still doesn't explain why DCX would build a new car plant in China vs Mexico.

The Mexican's are screaming about the jobs and economic activity they were promised in NAFTA.

I do realize that NAFTA doesn't garantee Mexico anything.

But when considering manufacturing stuff for the US/Canadian market, why is the playing field slanted towards China so much, and away from Mexico?

How many corporate engineers and executives want to travel to (and possible live in) china vs mexico as part of setting up and overseeing new plant infrastructure?

Or does it come down to money - that the gov't of China is willing to loan money to DCX to build a plant, but the Mexican gov't is not?

Reply to
MoPar Man

They aren't! they (DC) as well as most manufactures have plants run in conjunction with other automotive plant (companies) setup by the Chinese Government. "Baijing Jeep is on that DC has had since the early 90's. BMW manufacturers cars there, Mercedes, Chevy, Etc etc.

Because it is even cheaper then Mexico for labor. And China is a large country with raw materials available in China.

They already do. And they are not making a new plant. They already have new plants there!

Reply to
hartless

You got a point there. US wages are cheaper than Japan's, but Canada and Mexico (where Chrysler builds many cars now) are Cheaper than US. So I guess low cost wages depends on your perspective.

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Reply to
Joe

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I don't know, but I will say this. The North American auto industry has been brought to its knees by competitors (almost in every case) from countries with higher wages than in the U.S. Just imagine what they'd do if they were actually competing with products made with low labor costs! Almost ever other industry has had to compete with China directly for years. The auto industry is special. They have no clue what that's like. When the Chinese come after you, things change in a hurry. They don't always win, but they can really cheapen things a lot.

Reply to
Joe

Mazda is short on capacity and is looking at Ford's Oakville Ont. plant for CX-7 and CX-9 production. Toyota is building a new plant in Woodstock Ont.

Do Jap car makers own/operate or partner with any plants in China?

Will the increasing cost of shipping fully-assembled cars from asia become a factor in where cars will be made for the north-american market?

Reply to
MoPar Man

The only country I know of with higher wagers than the USA is Japan, and I'm not sure they are higher when you factor in total labor costs, benefits as well as wages. Since you said countries (plural) above, back it up with some facts.

Matt

Reply to
Matt Whiting

Mexico is losing much manufacturing to SE Asia. When in Mexico a few years ago there was much talk there on how they were losing to SE Asia because they didn't have any control over many of the foreign plants there.

Lower costs = more profit.

Also the Chinese Gov. will probably invest in and control the auto plants in China.

Reply to
Spam Hater

Germany. Tops the lot AFAIK. Big political issue there.

And newer car factories is in the Czech republic and China and...

DAS

For direct contact replace nospam with schmetterling

Reply to
Dori A Schmetterling

Actually some of the European countries have the highest labor costs. I believe Germany is the highest.

Reply to
Dave

I don't care how many cars Toyota assembles over here, they are NOT an American car company.

Reply to
Steve

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Thats OK, neither do the Chinese.

China *will* be a mass producer of goods, no doubt. But until all the Chinese manufacturers start playing by the rules (following design specifications, performing acceptance tests, performing required safety tests, etc.) then quality will continue to be hit-and-(mostly)miss.

Which is why they are doing such a TERRIBLE job of QA and QC. Right now, "Made in China" means exactly what "Made in Japan" did in the 50s- cheap, mostly complete crap, but a few things that are *really* good.

Reply to
Steve

Nor is Chrysler anymore!

Reply to
Spam Hater

China has come a long way. Now many Chinese goods are equal to those produced here. If only one could find goods produced here.

Reply to
Spam Hater

Not fully. Not even quite a majority (stockholder-wise). On the other hand, most of the design and engineering for the Chrysler, Dodge, Jeep, and Dodge Truck brands *does* still take place in Auburn Hills. The only real exceptions are the Crossfire (a re-bodied Benz) and bits of the LX platform cars (the transmission is a revised Benz design, and the suspension borrows from the E-class but isn't quite a copy.) Any way you slice it, though, Chrysler is many times more "American" than Toyota.

Reply to
Steve

I'm referring to the guys making the top decisions; they aren't American anymore. Yes the worker bees under them are mostly American.

Reply to
Spam Hater

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