GM May Focus on Cheaper Imports, Cut US Jobs

Jim Higgins · 2009-05-18T19:29:15+00:00

GM May Focus on Cheaper Imports, Cut US Jobs | 18 May 2009 | 06:33 AM ETGeneral Motors is engaged in negotiating a reorganization that could increase vehicle imports from its plants in Mexico and Asia while closing factories and cutting the work force in the United States.That approach drew a sharp rebuke from the United Automobile Workers union on Friday. In a letter to each member of Congress, the U.A.W., which represents G.M. factory workers, argued that to qualify for more government assistance, the auto giant should be required ?to maintain the maximum number of jobs in the United States.?The administration, however, appears to accept the proposition that to return to profitability as quickly as possible, G.M. must import a significant percentage of cars from its plants in low-wage countries, like Mexico and China, or low-cost countries, like Japan.G.M. already imports a third of the vehicles that go to showrooms in this country. That percentage would not change in the plan that G.M. is preparing to submit to the administration to justify billions of dollars in new loans to stave off collapse.G.M. would emerge a smaller company, with fewer employees and less output in this country and abroad. But imports would rise from low-cost countries, particularly Mexico and China, and that would be offset by fewer imports from Canada and Europe.Some economists, like David Autor of M.I.T., say that G.M. cars made in China, among other countries, ?are pretty competitive and could be sold here.?Others, like Harley Shaiken, at the University of California, Berkeley, argue that if G.M. focused more intensely on technology and auto quality, it could concentrate production in the United States and still be competitive. ?The other way to go,? he said, ?is to cut costs by importing more vehicles from Mexico and China, and lifting the bottom line that way.?A Treasury spokeswoman said over the weekend that ?G.M. and the U.A.W. are in active and constructive deliberations around all...

May 18, 2009 30 Replies

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labatyd 17 years ago

What's your idea of fair and how you going to impliment it? You and whose army?

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labatyd 17 years ago

How old are you?

Come again> You contradict yourself in one simple sentence.

I don't differentiate. If someone has something to offer and I'm interested I have my price, he has his. If we agree we have a transaction. If not either can walk away and seek something more suitable.

Sounds pretty fair to me. You're talking about something entirely different. Your entering a third party who actually has no interest in the transaction directly. He has nothing to sell nor any desire to purchase. That third party wants to influence the transaction to favor one or the other. That is NOT fair.

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Canuck57 17 years ago

But you like I and most of North America believe in trade, and not price fixing extortion, racketeering and the like.

Which is really what price fixing protectionism and racketeering are all about. A small, greedy and dysfunctional union or business makes lots of noise to get protection so they can screw everyone else priice wise for their products.

The result is a lower standard of living and fewer people can afford the products. Plus quality suffers for those that can.

GM isn't about a deal, it is about stealing.

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Rick_LT1 17 years ago

Mute? My god are you an ignorant SOB. You mean moot!

But you know best, don't you?

57 must be your IQ.

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Rick_LT1 17 years ago

So, you agree when the Asian countries practice it, but if the US does it, it is somehow unfair?

I generally like Canadians, but you're making your countrymen look bad. Are you Bob or Doug Mckenzie?

Mute != Moot

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80 Knight 17 years ago

That's being much more generous then I have seen anyone else give him...

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80 Knight 17 years ago

Rick, I beg you, don't compare Canadian's to "Canuck". He is an Albertan hick, who has been all over Canada, and the USA, apparently picking up every bad trait of whichever city he lived in.

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