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BUSINESS: Daimler May Export Chrysler Cars From China

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posted on Apr, 22 2005 @ 08:41 PM
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Daimler Chrysler is considering setting up a production base in China to make cars for export to the US and world markets, one of the first stages in what could be an important but politically sensitive shift in the car industry. The German-US group said on Thursday it was in talks with a potential joint venture partner in China for the new export production base for Chrysler cars. If it goes ahead, DaimlerChrysler would be the first multinational carmaker to open a plant in China to make vehicles for the World market.
 



www.bloomberg.com
DaimlerChrysler AG, the first overseas company to make vehicles in China, plans to build Chrysler compact cars in the country to sell to North America, taking advantage of wages one-18th those of U.S. workers.

DaimlerChrysler, the world's fifth-largest vehicle maker, is in talks with Fujian Motor Industry Group to form the venture in southeastern China, said officials from the two companies. The new Chrysler model would be a so-called B segment car not seen before, said DaimlerChrysler's China chief Ruediger Grube.

``China has a big advantage where labor costs are concerned,'' Grube said today at the Auto Shanghai 2005 vehicle exhibition. ``We expect to make a decision in the second half of the year.''



Please visit the link provided for the complete story.


One has to wonder if this new deal has anything to do with Chinas turning down the joint venture with the MG Rover Group in the UK. You have to admit it could be a possibility.

According to one article, I read these cars from China may ship as early as 2008, but that is yet to be determined.

If this deal goes through, I fear we will see a devastating loss of jobs in all European, US or the whole world for that matter that work in the auto industry, and as we all know that is not a good thing. One thing is for sure you can bet the auto industry is not going to pass on those labor savings to the buyer. The cars may be cheaper, but will they last? I have yet to see a product made in China that lasts like a good European or US product, have you?


Related News Links:
www.indianexpress.com
www.freep.com
www.detnews.com

[edit on 4/22/2005 by shots]




posted on Apr, 22 2005 @ 10:53 PM
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Originally posted by shots
One has to wonder if this new deal has anything to do with Chinas turning down the joint venture with the MG Rover Group in the UK. You have to admit it could be a possibility.


No,

The joint venture between Rover was with a Shanghai company, not the Fujian one as mentioned in the report.



posted on Apr, 23 2005 @ 10:52 AM
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The cars may be cheaper, but will they last? I have yet to see a product made in China that lasts like a good European or US product, have you?


Whether Chrysler builds its cars in the US, Europe, China or even the Moon for that matter, they will all still be of the same quality. The products which you are referring to were likely designed and built in China, usually by Chinese companies, which is an entirely different situation. Whatever Chrysler builds in China, it will be of the same quality of anything they manufacture anywhere else. It's not like their factory in China will be made of bamboo and sit in the middle of a rice field.



posted on Apr, 23 2005 @ 11:59 AM
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Originally posted by Rasputin13

The products which you are referring to were likely designed and built in China, usually by Chinese companies, which is an entirely different situation.


No the ones I am referring to were not designed and built in China. They were designed in the US then made in China. Some of the major brands are Nesco, Milwaukee Power Tools, Black and Decker, Briggs and Stratton the list goes on and on. Oh and make sure you include all the brand named toasters while you are at it.

Then go out and buy one of them that are now made in China and compare the quality and life span. You will find they last half the life (if that) and the material is thinner then those that were made in the US. Why? Because China makes things for a throw away society, thats why.

How long did that last pair of Chinese shoes last you as compared to the ones you bought that were made in the UK, US or Germany?

I know the Nunn Bush and Allen Edmond's I have are at least 15 years old if not older and all I have had to do is have new half soles and heels put on them. I cannot say the same for those shoes my wife purchased that were made in China. The same goes for house slippers, don't believe be go out and but some.



Whatever Chrysler builds in China, it will be of the same quality of anything they manufacture anywhere else.



No it won't see my comments above



posted on Apr, 23 2005 @ 12:30 PM
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Nothing succeeds like using SLAVE LABOR to reduce product costs. This is something that Diamler discovered back in WW2 and apparently they have a real longing for " the good old days". AMERICANS NEED TO STOP SELLING THEMSELVES TO CHINA FOR A FISTFULL OF DOLLARS. Chinese goods are inferior to their American made counterparts in every aspect. Chinese goods sell cheaper BECAUSE THEY ARE CHEAPER!!!!!!!!!



posted on Apr, 23 2005 @ 12:52 PM
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Yeah, if they do this i wont buy any more chryslers. They were good quality cars when they were here in the U.S. but if they are built in china they are guaranteed junk.



posted on Apr, 23 2005 @ 02:08 PM
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1. 50% of the 4 billion contracts signed in China are Counterfeit.

2. Corruption consumes 13%-17% of annual GDP

3. Counterfeit goods and substandard goods = 40% of all products made in China
4. Two thirds of the biggest SOEs produce false accounts

5. 15%-20% of infrastructure/building spending is lost to bribery, fraud and poor quality work

6 Underground economy 20% of GDP (or more)

Source: (Far Eastern Economic Review)






[edit on 4/23/2005 by shots]



posted on Apr, 23 2005 @ 02:49 PM
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AMERIKA will soon be just a bunch of mindless consumers..we will not build anything here, we will not service or do maintanence on anything here, we wont even handle the customer service aspect here. the only thing AMERIkA will build and service are weapons.
the cost of labor here is sooooooooooooooooooo expensive....so they say. will AMERIKA be a slave to other countries for the items we use...or is it that other countries will be slaves to AMERIKA..we will support entire economies, they will build it and we will consume it.



posted on Apr, 23 2005 @ 07:23 PM
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Tsk, tsk. Overflowing nationalism and stereotypical views shall be the cause of the fall of the great US of A.



posted on Apr, 23 2005 @ 09:50 PM
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Originally posted by shots
1. 50% of the 4 billion contracts signed in China are Counterfeit.

2. Corruption consumes 13%-17% of annual GDP

3. Counterfeit goods and substandard goods = 40% of all products made in China
4. Two thirds of the biggest SOEs produce false accounts

5. 15%-20% of infrastructure/building spending is lost to bribery, fraud and poor quality work

6 Underground economy 20% of GDP (or more)

Source: (Far Eastern Economic Review)





Hey Shots, can you produce the link for that article or a date of publication, i wonder how they can come up with those numbers.



posted on Apr, 24 2005 @ 08:46 AM
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While I deplore the oursourcing of goods and services in this country, our consumer demand to keep prices down is part of the problem.
When US autoworkers make more than $20.00 and hour in wages and benefits, how can US companies hope to keep car prices down. Come on, more than $20/hr to work on an assembly line

China auto workers will be making more along the line of $3.00/hour, don't know which news show came up with that figure, sorry.

I am not saying that the companies are innocent as far as the reasons for outsourcing go, bus as long as Americans want high-paying jobs and cheap prices for goods, outsourcing will continue.
Even the IRS and Voice of America agree jumping on the outsouring bandwagon.

Companies that outsource



posted on Apr, 24 2005 @ 09:20 AM
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Originally posted by rapier28

Hey Shots, can you produce the link for that article or a date of publication, i wonder how they can come up with those numbers.


PDF File Austrailian Government

I think the date mentioned was 2004 but will not swear to it. The Swiss embassy also has similar info, The wording is also not identical in this link they use therm Fraudulant in the first item not conterfeit. I can only assume they wanted to make it sound better.


Edit to add the info from the Swiss Embassy

People's Republic Of Cheats
Under the above title, FEER reports on the endemic curse of corruption and cheating in China's business environment. According to officially published figures:
50% of the 4 billion contracts signed in China are fraudulent in some respect.
Economic corruption eats up 13%-17% of the country's annual GDP.
Tax evasion accounts for 50% of taxes due in the private economy, while total losses from tax evasion are RMB 100 billion a year.
Counterfeit goods and substandard goods account for 40% of all products made in China, with losses running at RMB 200 billion a year.
Two-thirds of the biggest state firms produce false accounts.
The underground economy is the equivalent of 20% of GDP (actually twice that, say independent estimates).
15%-20% of the spending on an average infrastructure or building project is lost to bribery, fraud, and poor-quality work.

www.sinoptic.ch...

Hope that helps, I prefer the first link since it contains graphics on the issue.

In addtion the Swiss stated a disclaimer in theirs

China Business Briefing is a random selection of business related news gathered from various media and news services covering China, edited by the Embassy of Switzerland in Beijing and distributed among Swiss Government Offices and other interested parties. The Embassy does not accept responsibility for accuracy of quotes or truthfulness of content. Upon request and depending on the resources available, the Embassy will provide further information on the subjects mentioned in the China Business Briefing.


[edit on 4/24/2005 by shots]



posted on Apr, 24 2005 @ 09:35 AM
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Originally posted by DontTreadOnMe
China auto workers will be making more along the line of $3.00/hour,


In China, thats 3*9 = 27 Ren an hour, thats pretty damn good, goes a long way in China.

-----

shots,

Thanks for the link.

The rest of that link is really interesting, tells about conducting business in China. It's quite true, Relationships in China are the most important thing you need.



posted on Apr, 24 2005 @ 09:59 AM
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Originally posted by DontTreadOnMe
While I deplore the oursourcing of goods and services in this country, our consumer demand to keep prices down is part of the problem.
When US autoworkers make more than $20.00 and hour in wages and benefits, how can US companies hope to keep car prices down. Come on, more than $20/hr to work on an assembly line


You think that is bad At GM-Opel's Bochum and Russelsheim German plants, workers earn $41 an hour, or 33% more than auto workers in France and other European countries. German auto suppliers have already transferred 100,000 jobs to Eastern Europe and Turkey, and 40% have plans to shift more manufacturing out of Germany. If labor leaders, employers, and politicians don't wake up, German companies may soon be exporting made-in-China cars to Europe.

Source

So don't blame it all on US workers OK?




China auto workers will be making more along the line of $3.00/hour, don't know which news show came up with that figure, sorry.



Interesting since the article clearly stated their wages would be one-18th of what the us workers make which would mean they will be paid on 1.10 an hour. Big differance between three dollars and one dollar wouldn't you say?


As for demanding lower prices, you can blame a large portion of that on Walmart/Sam's Club, they are the ones who are really driving the prices down by demanding lower prices from their suppliers. In addition they share a very large blame for the low wages paid in the US by not paying what they should.



posted on Apr, 24 2005 @ 10:06 AM
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Originally posted by rapier28

Originally posted by DontTreadOnMe
China auto workers will be making more along the line of $3.00/hour,


In China, thats 3*9 = 27 Ren an hour, thats pretty damn good, goes a long way in China.

-----

shots,

Thanks for the link.

The rest of that link is really interesting, tells about conducting business in China. It's quite true, Relationships in China are the most important thing you need.


Break that down by one third since Dontthreadonme did not read the first article correctly, so his figure of 3.00 and hour is wrong.

If you have time read the swiss link it is rather juicy because they did not hold back on their comments like when they used People's Republic Of Cheats



posted on Apr, 24 2005 @ 10:38 PM
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Originally posted by shots
If you have time read the swiss link it is rather juicy because they did not hold back on their comments like when they used People's Republic Of Cheats


Yes, i've read that link too but was less interested in it because it's dated 2001.

Alot has changed in regulations since there, especially now since the banking reforms are in full swing and bank bosses are put on notice.

I also wonder how much of the conterfeit goods losses are in Potential Sales and how much are actual losses. The movie & recording industry puts forward all sorts of statistics, but the fact is, most of the losses incurred are potential sales, if no pirate DVD's existed, they still woudn't have made that money. People would simply not watch it.



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