Baseball, hot dogs, apple pie and Chevrolet!

[Shaun @ Tru6]

will be changing to Football, Linguica, Flan and Chevrolet.

From the end of the article:
GM, which lost more than $10 billion in the past two years, is trying to return to profitability through a restructuring that includes cutting more than 34,000 jobs and closing 12 plants in North America.

GM to Invest $500 Million in Brazil, Argentina
2007-07-18 14:16:05.0

DETROIT (Reuters) - General Motors Corp (GM) said on Wednesday it would invest $500 million in its operations in Argentina and Brazil for developing small vehicles for Latin America and other emerging markets.

GM will put $400 million of that into developing compact cars that would be built at GM's plant in Sao Caetano in greater Sao Paulo, Brazil, and in Rosario, Argentina.

The automaker expects the cars to be on the market by around 2011, but it did not say if the cars would run on ethanol.

Brazil leads the world in production of ethanol, a fuel that produces less pollutants than gasoline, burns cleaner and is made from renewable sources such as sugar cane or corn.

Another $100 million will be invested in GM's technology center in Sao Caetano and Indaiatuba, also in Sao Paulo, Chief Executive Rick Wagoner said after the announcement in Sao Paulo. Wagoner was president and managing director of GM Brazil in 1991 and 1992.

"We have been growing our engineering resources in key emerging markets like Brazil, China and India, not only for development of vehicles for their own markets, but for other emerging markets as well," Wagoner said.

"This investment will enable us to take full advantage of the expertise we have in Brazil and support our planned local and global sales growth."

GM is growing overseas and expects sales outside the United States to continue to surpass domestic sales. Foreign sales accounted for 55 percent of GM's sales last year.

Sales in Brazil rose 18 percent in the first two quarters of 2007 and sales in Argentina rose 16 percent, while U.S. sales fell 8 percent in the same period.

GM, which lost more than $10 billion in the past two years, is trying to return to profitability through a restructuring that includes cutting more than 34,000 jobs and closing 12 plants in North America.

(Reporting by Jui Chakravorty in Detroit; additional reporting by Cesar Bianconi in Sao Paulo)

[onewhippedpuppy]

Sad that Toyota is more of an American company than GM, Ford, and Chrysler.

[lendaddy]

Ughh, we push companies away with taxes, regulation, litigation, and union blackmail then b1tch when they make the obvious decision to relocate, whole or in part.

Companies don't have souls, they are never going to "do the right thing."

If you want companies to stay or relocate here then give them a reason to do so.

Pretty basic stuff.

[Shaun @ Tru6]

Originally posted by lendaddy
Ughh, we push companies away with taxes, regulation, litigation, and union blackmail then b1tch when they make the obvious decision to relocate, whole or in part.

Liberals do this.

there has been a Conservative super-Majority in power for 6+ years, .5 year split recently.

[lendaddy]

Originally posted by Shaun 84 Targa
Liberals do this.

there has been a Conservative super-Majority in power for 6+ years, .5 year split recently.

At no point was there a Conservative "Super-majority" but regardless this is a problem that's been brewing for 70 years, not 6. And it is the policies and legislation passed decades ago that are screwing us into the ground now.

[widebody911]

Originally posted by lendaddy
Ughh, we push companies away with taxes, regulation, litigation, and union blackmail then b1tch when they make the obvious decision to relocate, whole or in part.

If that's the case, then how has Toyota manged to invade and kick GM's sorry ass on it's home turf? Did Japan push them away?

[lendaddy]

Originally posted by widebody911
If that's the case, then how has Toyota manged to invade and kick GM's sorry ass on it's home turf? Did Japan push them away?

Easy, they don't have the legacy costs that the big three do and they have plants in lower wage, lower tax areas. They're not handcuffed by asnine union contracts that prevent plant closures and movement and/or other common sense business flexability moves. They got here late in the game and were able to avoid the pitfalls of doing business here (well the big ones anyway).

Also, they viewed it as a marketing tool or cost of sales to buy good will. Not to mention shipping savings.

Like I said, the problems go back decades and there weren't any Toyota plants here in 60's and 70's.

[onewhippedpuppy]

True, but it was the choice of the American automakers to hire union workers and pay the ridiculous salaries and benefits. Foreign automakers have seen both financial and karma benefits by building their cars in the USA, just in non-union states. An automaker could build a factory in a small KS town, pay $15/hr for blue collar work, and easily have more applicants than jobs to fill. I would guess most rural areas of the USA would be the same.

Paying assembly line workers $30+/hr, with benefits and pension after retirement, is just their own fault. I'm all for a fair wage, but that is ridiculous.

[lendaddy]

Originally posted by onewhippedpuppy
True, but it was the choice of the American automakers to hire union workers and pay the ridiculous salaries and benefits. Foreign automakers have seen both financial and karma benefits by building their cars in the USA, just in non-union states. An automaker could build a factory in a small KS town, pay $15/hr for blue collar work, and easily have more applicants than jobs to fill. I would guess most rural areas of the USA would be the same.

Paying assembly line workers $30+/hr, with benefits and pension after retirement, is just their own fault. I'm all for a fair wage, but that is ridiculous.

Agree that it's their fault for signing the union contracts but it doesn't change the effects of those actions. Even then the tax structure and regulations are still in place.

We should be of the mindset to court business, not milk it. Make the revenue off the backside, but give business as many reasons as you can to be/stay here.

[onewhippedpuppy]

Very true, but that brings us into another conversation regarding unions.

My opinion, I think they should pose two options to their overpaid union employees.

1. You take a significant pay cut, to a fair wage.
2. You're fired.

A similar situation played out here locally, when Boeing sold a portion of their local business. The union employees thought the new owners were bluffing, and most were fired. The company was offering a contract for MINIMUM pay of $20/hr. Many of those with experience were making $40/hr. Just insane.....

[kaisen]

Originally posted by widebody911
If that's the case, then how has Toyota manged to invade and kick GM's sorry ass on it's home turf? Did Japan push them away?

Len and Matt made valid points about legacy costs, unions, and building plants in lower-wage states. Additionally, remember that Toyota has the option to shift production BACK to other countries when the Dollar doesn't support US production. Which it is doing now, post haste. The Yen to Dollar is very favorable for Japanese companies right now.

Len is right about 'losing' US companies to other countries. As the article states, GM is diversifying its manufacturing capacities in China, Brazil, and India - I just don't think people realize to what extent. You are seeing the tip of the iceberg.

IF U.S. auto manufacturers are diversified, they can shift production where it is needed and where the currencies favor it. If your car was more efficient to build in China (or Korea, or India), do you care? No, you just want the best car for the money.

The UAW is irrelevant in the long run. GM (and others) no longer NEED North American manufacturing. It is almost inevitable.

[onewhippedpuppy]

"If your car was more efficient to build in China (or Korea, or India), do you care? No, you just want the best car for the money."

E, I have to take issue with this. For some people, no it will not. But many people still buy American cars, because they are American cars. My grandfather still refuses to buy a car made by the "Japs" as he still calls them (yes he knows the war is over). Patriotism is much of the reason that people bought crappy American cars for the last 30 years. If word starts to get out that the Impala was built in China, while the Camry is built in Kentucky, it could turn into a PR nightmare. The American companies need all the help they can get these days, creating bad karma isn't the best idea.

All of this is moot if the foreign production is for those local markets only, but I suspect it is not.

[kaisen]

Unfortunately, there aren't many buyers like your grandfather. The majority of Americans do not care, evidenced by current sales. Truck buyers may be a little different, but due to US tariff structure, everyone's trucks are built in North America anyway.

So if the whole car is assembled in North America, how about sub-assemblies? GM has been shipping Chinese-built 3.4L V6's for use in Chev Equinox and Pontiac Torrent for some time now. At what point does it stop mattering?

[Nostril Cheese]

Havent GM been making the majority of the trucks in Canada and Mexico for some time now?

[teenerted1]

you spelled futbol wrong

[john70t]

Lend- I don't know what the history of "state shopping and hopping" is for Toyota, but, until recently at least, the cultural practice and S.O.P. for those non-union Japanese companies was to hire workers until retirement, excepting the extremes of course. In return they got total commitment from the worker-end.

CEO's working for a year and taking off with eight figure retirements is not the norm there, period. No performance, no pay.
That culture only works for the short term and breeds resentment at the worker level. "If they can do it, why can't I? Forget production quality focus, mabye a little sexual harassment or a slip-n-fall...."?

As an analogy, a local example of administrative excess was the recent on-campus EMU rape/murder of a white girl in her dorm room by a black athlete. It was purposely covered up by administration and security for something like half a year.......
The news finally got out, and three administrator, so far, have been canned.
Guess what? Instead of a year in jail, each, for complicity, the city of Ypsiilanti is given them as a send off of A YEAR'S SALARY .....to the tune of over $1/2million. Think things will change with the next contract? Nope.

In times of $3-$4/gal gasoline, the times will pass one by if one doesn't change.

[lendaddy]

Jon, you are correct that the Japanese take employer employee relationships and commitment much more seriously. They think of it as a marriage of sorts, in part of the culture (my wife worked for Yamaha). And their CEO and other senior salaries are generally much lower. Not to excuse radical pay, but run the numbers once. Even at the extreme amounts payed it is inconsequential in the big picture. Does it have an effect on moral, yea I bet it does but not on the bottom line.

[tc-sacto]

Originally posted by john70t
until recently at least, the cultural practice and S.O.P. for those non-union Japanese companies was to hire workers until retirement,

Recently?...I think that practice ended in 1980's. Didn't you see the movie Gung-ho?

[onewhippedpuppy]

E, maybe in the sense of the big picture, but I can tell you that pro-American is still alive and well in the midwest. Drive through a small KS town, it's not Toyota and Honda you see. Sure, there's a few, but the majority are still American vehicles. My in-laws are like that, after 30+ years of buying new cars, they bought their first foreign car last year, a Mazda 3. I think if there had been an option from an American company, they would have preferred it. However, after a flawless experience with the 3, they are reconsidering their opinions.

Sad, but of the 5 American cars they currently own, all have had multiple recalls. The ones with the miles on them are not holding up well. Even pro-America can only overcome so much, and killing that spirit won't help things.

For some reason, Mexico and Canada don't seem to bother people all that much. But China has such negative connotations, that might raise some eyebrows.