aknowledgeableperson wrote:chingon wrote:Of course, most of them have received heavy government investment in their home countries...but that doesn't fit the talking point about big bad greedy unions, so you guys kind of leave that out. That and the part about how heavily unionized those auto makers are in Europe and Japan.
There is more to the domestic auto industry than GM and Chrysler. Ford didn't need help nor any other auto maker (outside of electric, etc) that makes cars in the good old USA like Toyota, Nissan, Honda, etc.
Just curious, GM and Chrysler still make cars in Canada and Mexico?
Anyway, with the labor agreements and plant shutdowns of GM and Chrysler isn't that what Romney did with Bain? Guess it is OK if the government does it. And why not have those two automakers shut down those foreign plants and move those jobs to the USA?
Toyota's financial unit has asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than US$3 billion. It says the international financial situation is squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. It is the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.[22]
http://en.wikipedia.org/wiki/Toyota
On another note, Suzuki Motor Corp. was founded after the Japanese government granted its' founder a government subsidy to engineer motorcycles.
With Ford, timing was a factor. Ford almost went bankrupt, but it reorganized and got financing, labor, and benefit deals in place before the fiscal crisis of 2008. Ford had resized the company, planned to shut down Mercury, and sold off Hertz Rent-A-Car, Volvo, Jaguar, Aston Martin, and Land Rover, and its' controlling stake in Mazda. By that time, Ford had recovered enough to not need bailing out. Chrysler was weakened partially because of its' merger with Daimler, which was a disaster.
GM and Chrysler were also unprepared for the tightening of the credit markets, higher gas prices, and large drops in sales because car buyers couldn't get credit. Chrysler's alliance and divorce with Daimler has also left it without new model designs.
Auto companies like GM and Chrysler build cars in foreign countries for a variety of reasons. Some of it has to do with currency exchange. For many years, the Yen/Dollar exhange rate affected Japan's export costs, so it was cheaper to produce cars in the USA than import them.
Labor costs of are often lower in Mexico, and since they sell vehicles in Mexico as well, it makes their product more affordable to Mexicans. Local in-country production also reduces the costs of shipping vehicles long distances. In some cases, I'm sure there are trade reasons like tariffs or value-added taxes. Some countries simply require manufacturers to build certain percentages in-country (like China).
There are also models made in those countries that are only sold there, and not in the USA: Chevrolet Astra, Chevrolet Corsa, Chevrolet Celta, Chevrolet Prisma, Chevrolet Meriva, Chevrolet Zafira (made in Brazil). These models are usually smaller, cheaper vehicles that wouldn't appeal to the US market. They can also be discontinued older US models rebadged in other countries (like the Chevy Cavalier/Cobalt) These models can also have lower horsepower 3-cylinder diesel engines--sometimes as low as 57 horsepower.
Engines made in foreign countries for GM brands also have to meet different emissions specific to that market.
GM Plants
Ingersoll, Ontario -- Canada --Chevrolet Equinox/ GMC Terrain (plant opened 1988)
London, Ontario -- Canada -- Chevrolet Impala (plant closed in Feb, 2012 due to new plant opening in Muncie, IN, USA)
Oshawa, Ontario -- Canada -- Impala/Camaro/ Equinox (plant opened 1953, closing announced)
St. Catharines, Ontario -- Canada -- Engine plant (plant opened in 1954)
Saint-Eustache, Quebec -- Canada -- Chevrolet Equinox
Ramos Arizpe -- Mexico -- Chevrolet C2/Chevrolet HHR/Cadillac SRX (plant opened 1981)
San Luis Potosí -- Mexico --Chevrolet Aveo/Pontiac G3/Pontiac Wave (plant opened 2008)
Silao -- Mexico -- Escalade ESV/Escalade EXT/Avalanche/Suburban/Yukon XL (plant opened in 1994)
Chrysler Plants
Brampton, Ontario -- Canada -- Chrysler 300/ Dodge Challenger/Dodge Charger (plant opened in 1986)
Toronto, Ontario -- Canada -- Aluminum Die Castings, Pistons (plant opened in 1942)
Windsor, Ontario -- Canada -- Dodge Grand Caravan/Chrysler Town & Country/Volkswagen Routan (based on Chrysler van platform) (planted opened 1928)
Saltillo, Coahuila -- Mexico -- Dodge Ram 2500 & 3500 (plant opened 1995)
Toluca, Mexico -- Dodge Journey/Fiat Freemont/Fiat Nuova 500 (planted opened 1978)