lockmat Posted May 11, 2009 Share Posted May 11, 2009 I was watching Robert Gibbs today and a reporter mentioned that GM could be relocating away from Detroit.Would yall be opposed to them moving to Houston?Would it be a wise move for GM to move to Houston? What other cities would be good choices for them? Link to comment Share on other sites More sharing options...
kylejack Posted May 11, 2009 Share Posted May 11, 2009 Our job market is doing pretty good even in the recession, so I'd rather not insert a questionable entity like GM. If they fail that leaves us with a lot of jobless auto workers. I would also expect them to demand concessions (tax breaks, etc) to move here and frankly I'd rather not give them another penny. Link to comment Share on other sites More sharing options...
Mr. Chenevert Posted May 11, 2009 Share Posted May 11, 2009 I dont think the idea was that they would relocate in the US...the article I read mentioned that they sell just 20,000 units less in China than they do in the US... only 26% of their revenue comes from the US market...the idea of relocation would be for them to move to an emerging or growing market... probably China. Link to comment Share on other sites More sharing options...
lockmat Posted May 11, 2009 Author Share Posted May 11, 2009 I dont think the idea was that they would relocate in the US...the article I read mentioned that they sell just 20,000 units less in China than they do in the US... only 26% of their revenue comes from the US market...the idea of relocation would be for them to move to an emerging or growing market... probably China.Yeah, I read that a little later after I posted the topic.I'm sure they would love just to get out from under the union. Link to comment Share on other sites More sharing options...
plumber2 Posted May 12, 2009 Share Posted May 12, 2009 Yeah, I read that a little later after I posted the topic.I'm sure they would love just to get out from under the union.Unions bad! Communism good. Link to comment Share on other sites More sharing options...
TheNiche Posted May 12, 2009 Share Posted May 12, 2009 Unions bad! Communism good.Same difference. Link to comment Share on other sites More sharing options...
travelguy_73 Posted May 12, 2009 Share Posted May 12, 2009 I dont think the idea was that they would relocate in the US...the article I read mentioned that they sell just 20,000 units less in China than they do in the US... only 26% of their revenue comes from the US market...the idea of relocation would be for them to move to an emerging or growing market... probably China.Talk about the worst move they could possibly make. China already loves GM cars, so moving there would likely not get them much of anything. However, they have a tenuous hold on the US market share they still have, and much of that comes from a Buy America sentiment they can't afford to lose. It is pretty much guaranteed that if they relocated their major US operations outside of this country, they would lost that market share (with no offsetting gain anywhere else). Link to comment Share on other sites More sharing options...
kylejack Posted May 12, 2009 Share Posted May 12, 2009 Talk about the worst move they could possibly make. China already loves GM cars, so moving there would likely not get them much of anything. However, they have a tenuous hold on the US market share they still have, and much of that comes from a Buy America sentiment they can't afford to lose. It is pretty much guaranteed that if they relocated their major US operations outside of this country, they would lost that market share (with no offsetting gain anywhere else).They're being bankrupted by conditions they gave the union, so how do you figure? Total revenue may go down, but production cost would go way way down, so profitability could improve. Link to comment Share on other sites More sharing options...
LTAWACS Posted May 13, 2009 Share Posted May 13, 2009 This is proof unions are bad. Link to comment Share on other sites More sharing options...
crunchtastic Posted May 13, 2009 Share Posted May 13, 2009 Actually, GM will be relocating to Sweden. Ikea is acquiring the company and will apply their business model:http://beancounters.blogs.com/.a/6a00d8345...14171970b-popupedit: dammit! They left the allen wrench out of the box! Link to comment Share on other sites More sharing options...
citykid09 Posted May 14, 2009 Share Posted May 14, 2009 Actually, GM will be relocating to Sweden. Ikea is acquiring the company and will apply their business model:http://beancounters.blogs.com/.a/6a00d8345...14171970b-popupedit: dammit! They left the allen wrench out of the box!LOL, I would give up just looking at it. Are they really considering leaving the states? If they are, why would we care if they survive? I think Houston would be a good move for GM, or Dallas. Link to comment Share on other sites More sharing options...
TheNiche Posted May 14, 2009 Share Posted May 14, 2009 LOL, I would give up just looking at it. Are they really considering leaving the states? If they are, why would we care if they survive? I think Houston would be a good move for GM, or Dallas.Northern Virginia. It's a right-to-work state with even less unionization than Texas, and is only minutes away from the halls of Congress. Link to comment Share on other sites More sharing options...
Trae Posted May 14, 2009 Share Posted May 14, 2009 Chicago would be a good place for GM, too. Link to comment Share on other sites More sharing options...
TJones Posted May 14, 2009 Share Posted May 14, 2009 LOL, I would give up just looking at it. Are they really considering leaving the states? If they are, why would we care if they survive? I think Houston would be a good move for GM, or Dallas.Don't think it is a consideration, it is all but done. Chi-com production costs are much much less money than UAW rules dictate. The factories are already built just need a little re-tooling which the Chinese Gov. will happily accomodate to take a Cornerstone of American business, AWAY from America. I guess GM plans to get out of the American market all together. They are shutting doors on 1100 dealers by 2010. The rest, I guess, will have to decide whether they will sell China's lead-based paint products or not. Consider, cheaper steel, doesn't necessarily mean less strength in it, but this IS China we are talking about.I personally think it is a Dick move by GM, and this is part of the reason I am selling my Oldsmobile. I am thinking about buying another defunct American car. Either an SRT8 Challenger or Charger. I think I could steal one at this point. Most likely go with a new Mustang GT, that I can trick out myself. Link to comment Share on other sites More sharing options...
TheNiche Posted May 14, 2009 Share Posted May 14, 2009 Don't think it is a consideration, it is all but done. Chi-com production costs are much much less money than UAW rules dictate. The factories are already built just need a little re-tooling which the Chinese Gov. will happily accomodate to take a Cornerstone of American business, AWAY from America. I guess GM plans to get out of the American market all together. They are shutting doors on 1100 dealers by 2010. The rest, I guess, will have to decide whether they will sell China's lead-based paint products or not. Consider, cheaper steel, doesn't necessarily mean less strength in it, but this IS China we are talking about.I personally think it is a Dick move by GM, and this is part of the reason I am selling my Oldsmobile. I am thinking about buying another defunct American car. Either an SRT8 Challenger or Charger. I think I could steal one at this point. Most likely go with a new Mustang GT, that I can trick out myself.First of all, I don't see any kind of a corporate relocation as given. There is an enormous concentration of specialized labor up there that simply couldn't be replicated anywhere else in the world. Their suppliers are in large part headquartered there as well. Autos are to Detroit what Energy is to Houston; and you don't witness energy companies moving out of Houston during an energy bust. Actually, it's the other way around--the companies downsize and relocate here. There's good reason for that.Secondly, GM is shutting down plants and dealerships because it can't move that much product on the American market. That doesn't mean that its plants are all being relocated overseas. Toyota assembles vehicles in the United States because it makes economic sense to assemble them close to the market that they're sold. GM will do the same. Link to comment Share on other sites More sharing options...
ernie5823 Posted May 14, 2009 Share Posted May 14, 2009 As I understood the rumors, GM may be considering importing Chinese manufactured cars to the USA. UAW is obviously not a happy camper. Here's an article about rumors.http://apnews.myway.com/article/20090514/D985PEDO0.html Link to comment Share on other sites More sharing options...
LTAWACS Posted May 15, 2009 Share Posted May 15, 2009 Toyota assembles vehicles in the United States because it makes economic sense to assemble them close to the market that they're sold.There's more to it than that so I'm not sure that's entirely accurate. I think there are regulations saying that a certain percentage of a product has to be assembled here in the US... something of that nature. Cheaper/less tariffs if they build them (or most of them) here. So I'm not sure they can completely assemble them entirely overseas. Link to comment Share on other sites More sharing options...
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