LOL Billions of Dollars to Build GM Factories Overseas

[Gaspar]

GM will attempt to save itself from the UAW.

From the Washington Post this morning.

The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company's new jobs will be filled by workers overseas.

According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.

The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.

[cannon_fodder]

So, basically an 8% increase in overseas job to offset the 8% decrease in US jobs.  At lest, I have to assume.

It states that a worker in Korea costs the company $22 an hour.  Shipping costs and import costs add further to the tally.   But still the cost to produce and transport is probably $25 per required labor hour.  Or less than half of what it costs to pay an average UAW member.  And South Korean workers have a productivity rate nearly that of US workers.

Given those numbers, it's the only way the company survives.  And forget about producing cars in the United States for export.  Too bad, I wonder if a solution would of/could have been found a decade ago to prevent this from happening.

[Conan71]

Break the union and it would happen here, Cannon.

[guido911]

Break the union and it would happen here, Cannon.

I just cannot get passed that avatar.

"Hey, if I could do that myself I'd never leave the house..."

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