10-16-2010, 08:00 PM
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Re: China Emerges as a Scapegoat in Campaign Ads
GM offshore outsourcing U.S. jobs
Glad you supported GM getting U.S. taxpayer dollars? Want to see GM survive, prattling on how America needs an auto industry?
Instead we get this, GM plans to shift overseas production:
General Motors Corp. will shift more production of vehicles bound for the U.S. market to China, Mexico, South Korea and Japan, but will keep total imports at roughly one-third of all sales here.UAW legislative director Alan Reuther wrote a letter to Congress:
In a confidential 12-page presentation to members of Congress, obtained by The Detroit News on Friday, GM said it will boost U.S. sales of vehicles built in those four countries by 98 percent -- or about 365,000 vehicles -- while shrinking production in Canada, Australia and European countries by about 130,000 vehicles.
GM also disclosed it will start importing vehicles made in China in 2011, reaching 51,546 vehicles in 2014. Imports from South Korea to the United States will jump from 36,967 vehicles in 2010 to 157,126 in 2014.
The automaker said it is canceling expansion projects in Russia, India and Mexico.
GM's plan to import more vehicles from low-wage countries raises questions about whether it should beef up its foreign operations as it is relying on federal money to stay afloat. It also puts the automaker at odds with the United Auto Workers, which is trying to protect U.S. jobs amid a dramatic restructuring of the domestic auto industry.
GM has faced strong protests from the union that its turnaround plan unfairly targets U.S. workers and plants for cuts. GM plans to trim 21,000 hourly workers and close 13 of its 47 U.S. plants by the end of 2010 as part of a tougher recovery plan sought by President Obama's auto task force. It will close three more U.S. plants by 2014.
Unfortunately, the latest restructuring plan put forward by the company calls for the closing of 16 manufacturing facilities in this country, including four assembly plants. This will result in the direct loss of 21,000 jobs. Who else says **** 'em? Let them be liquidated in bankruptcy, save the UAW pensions and health care and let's be done with this Benedict Arnold corporation. Why are we pouring U.S. taxpayer money into some labor arbitraging behemoth? Let's just kill this globalization that just bit them but they want to do it again monstrosity and start over.
The ripple effect at suppliers, dealers, and other businesses will cost tens of thousands of additional jobs, devastating numerous communities across the United States.
Incredibly, between 2010-2014 GM's restructuring plan also calls for a 98% increase in the number of vehicles it will be importing into the United States from Mexico, Korea, Japan and China, with the number of imports from these countries increasing from 371,547 to 736,743. As a result, the share of GM’s sales in the U.S. market that will be imported from these countries will increase from 15.5% to 23.5%. The overall number of vehicles GM will be importing in 2014 represents the production of four assembly plants, the same number that GM plans to close in the United States.
Here's William Greider at The Nation:
So this is how the auto bailout will work. American taxpayers pump tens of billions into rescuing General Motors from bankruptcy. Then GM pays us back by shipping more jobs overseas--the equivalent of four assembly plants. The federal money will directly subsidize more imports from abroad, enabling GM to double its car production in Mexico, South Korea and China and selling the cars into the US market.Oh yeah, GM's claim they are not using taxpayer funds is pure bullshit. Without those funds they would already be in bankruptcy. There are previous reports of GM using our taxpayer dollars for operations in Brazil.
Can someone explain how this is in our national interest? If that is the best deal Obama's auto czars can come up with, then this angry taxpayer says: laissez-faire--let GM go down. Better to settle for bankruptcy court than provide public financing to further the destruction of US manufacturing.
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