AFSCME 3357-HOF'S BLOG

Ford & GM to invest $4 BILLION in China

On consecutive days, General Motors, then Ford announced that they would be making major investments to increase their capacity in China. GM $3 Billion and Ford $1 Billion.

To put this in context. The industry is struggling right now with global overcapacity. Demand is surging in China right now, but it is still quite small on international terms. In the meantime, all the world's automakers are surging into the country to serve the demand. Supposedly all of this capacity will be used to serve the Chinese domestic market, but who's kidding who (whom?). Already GM is importing engines from China. What's to stop them from importing cars as well? The race to the bottom continues. In the meantime, US factories are struggling with not enough capital spending.

The UAW has a right to be pissed.



The Car Connection [ The Web's Automotive Authority ]