Cars Built in China and Mexico Coming to USA – A Bad Decision
General Motors and Volvo are set to begin delivery of the first Made in China cars sometime this year.
China now owns Volvo, but GM is a US company that has turned its back on the American worker by shipping Chinese made GM cars soon.
Volvo will begin importing the S60 Inscription luxury sedan from China this summer. GM, America’s #1 Automaker, will ship in the Chinese built Buick Envision SUV.
In a release, GM said it didn’t expect to flood the American market with the Chinese made Buick, only between 30.000-40,000 per year. In our view that’s a lot of cars, and American jobs lost.
Let’s do some simple math. If the average cost of a GM made Buick Envision is $40,000, multiplied by 30,000 cars—that’s $1.2 Billion. Imagine how many automotive American jobs could be created with just a fraction of $1.2 Billion. What a disgrace!
So while we think that if we buy a GM car, it’s made in the USA, think again. A lot of Hondas and Toyotas are actually made here.
Another GM car, the hybrid plug in Cadillac CT6 will also be built in China. Will more auto makers follow GM and Volvo to China? When are we going to protect and prioritize American made, even in the auto industry? Is Donald Trump’s call for a tariff on auto’s shipped into the USA still an outrageous thought?
Mexican made US auto’s are also becoming a problem for the American Made brand. Recently, the United Auto Workers President Dennis Williams said that US automakers can still make a profit by making it here. "There is no reason, mathematically, to go ahead and run to countries like Mexico, Thailand and Taiwan,"
GM, Ford and Fiat Chrysler all have plants in Mexico and are investing money to expand. Honda, Nissan, Toyota and Volkswagen are doing the same.
"We all recognize there is a huge problem in Mexico," Williams said. "So we have to address it as a nation. The UAW cannot do it alone. We are not naive."
The destruction of the economy in Detroit and in the State of Michigan will continue with Ford announcing that it will end production of the Ford Focus in its Wayne, Michigan plant in 2018, and with Fiat-Chrysler to end production of the Chrysler 200 and the Dodge Dart in the USA in a few years.
Here’s the cost breakdown: An autoworker in Mexico earns less than $8 per hour including benefits, while a UAW auto workers with a new contract with givebacks starts at $17 per hour with benefits and goes up to $29 per hour after 8 years.
Williams admits that more must be done to equalize wages, but not enough can be done if the free flow of “US” cars across the border from Mexico and China continues without tariff or at least the American public knowing that the name GM, or Ford, doesn’t necessarily mean Made in the USA.
In 2015, the U.S. automotive industry sold more than 17.47 million cars, the most ever, and the three US automakers have hired thousands of workers here at home to keep up with demand.
Williams also pointed out that only 10% of the cost of a car is from labor. "As far as cars go, there is no reason why we can’t build cars successfully in the United States of America," Williams said.
We can still make it hear, and the Big 3 automakers can still make their profits. We need the will of the American people to make it happen.