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GASP! A company with its eyes set on profit has begun targeting a move to capture market share in the most populous country in the world? Shocking.

 

This really isn't ground breaking... but they way the video is laid out they hope you get riled up over it.

 

China is a rapidly growing market, ALL of the manufactures are clamoring to get their foothold in that market as its the largest in the world. It makes perfect sense that GM would open manufacturing there to service the market... makes very little sense to build the cars here (or mexico and canada) and ship them. Much in the same way it wouldn't probably pencil out for them to start building cars there to ship here when the existing infrastructure for most of their manufacturing is already in the US.

 

I for one hope GM does very well selling cars in China... maybe we can reverse some of the trade balance instead of just being purely consumers.

Edited by Dylan@Adams
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GASP! A company with its eyes set on profit has begun targeting a move to capture market share in the most populous country in the world? Shocking.

 

This really isn't ground breaking... but they way the video is laid out they hope you get riled up over it.

 

China is a rapidly growing market, ALL of the manufactures are clamoring to get their foothold in that market as its the largest in the world. It makes perfect sense that GM would open manufacturing there to service the market... makes very little sense to build the cars here (or mexico and canada) and ship them. Much in the same way it wouldn't probably pencil out for them to start building cars there to ship here when the existing infrastructure for most of their manufacturing is already in the US.

 

I for one hope GM does very well selling cars in China... maybe we can reverse some of the trade balance instead of just being purely consumers.

 

Well said Dylan,

 

All the other major car companies are doing it, why not GM? GM has to build the vehicles in china for the chinese market because of the hardcore tarifs and trade restrictions the Chinese gov has in place. GM also has set up joint ventures with Chinese companies to build GM vehicles. GM could make a huge profit selling cars like this in China which is a good thing for American consumers. just a couple years ago GM was bankrupt now they are posting record sales. The more profit GM makes in China the more money they will have to spend on R&D and technology which will create better vehicles with new technology. The same is true for all the other car companies with a foothold in China.

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China has had a love affair with Buick and Caddy for some time anyways... I remember reading a report (i'll track it down) where sales of the larger Buick cars were almost 3x in China what they are here.

 

Does doing business with China feel good? Nope... I bet it feels downright creepy based on the horrible human rights and labor violations we hear about there, but in order for them to stay competitive GM has to venture into emerging markets as does ANY company. That video is a really unfair characterization of the truth... doing business in China does not make them "china motors".

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China has had a love affair with Buick and Caddy for some time anyways... I remember reading a report (i'll track it down) where sales of the larger Buick cars were almost 3x in China what they are here.

 

Does doing business with China feel good? Nope... I bet it feels downright creepy based on the horrible human rights and labor violations we hear about there, but in order for them to stay competitive GM has to venture into emerging markets as does ANY company. That video is a really unfair characterization of the truth... doing business in China does not make them "china motors".

 

I think I watched a different video than everybody else did. :confused:

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I think you just got more riled up than everyone else did.

 

World-wide commerce. If you want to be profitable in BIG business, you can't turn your back on it.

 

It's not that I don't understand what everybody is saying, it's the fact that the Government bailed them out and then they move to China. I see nothing positive for the consumer pertaining to the prices of new vehicles being built over there. To much greed in the US with car dealerships.

 

Finally, I have to take a serious look at the number of people who worked for them, for most of their life, now being out of a job. Then I have to factor in how many large, empty plants who once employeed hundreds of people, now sitting empty, China comes in and buying them all up. US companies should be buying them and starting up large companies. However than can't happen because basically the US is just flat broke.

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It's not that I don't understand what everybody is saying, it's the fact that the Government bailed them out and then they move to China. I see nothing positive for the consumer pertaining to the prices of new vehicles being built over there. To much greed in the US with car dealerships.

 

Finally, I have to take a serious look at the number of people who worked for them, for most of their life, now being out of a job. Then I have to factor in how many large, empty plants who once employeed hundreds of people, now sitting empty, China comes in and buying them all up. US companies should be buying them and starting up large companies. However than can't happen because basically the US is just flat broke.

 

 

your watching it wrong, they will still have plants in the US/Mexico/Canada. they are just opening plants in china to sell to teh chinese.

 

As dylan said, they can not profitably make cars over here and ship them there, or make them over there and ship them here. The frieght for the amount of business they do would kill them. Now will some plastic parts and stuff be made there and shipped here, most likely, but not much more than they do already.

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Its all in the manipulation of the figures Bill.... they focus on that "70% OF THIER VEHICLES WERE NOT BUILT IN THE US" what they didn't touch on is that its been that way for some time with most manufacturing happening in Canada or Mexico. They further manipulate that point by saying "its only going to get worse" ... well yea! If they open manufacturing facilities in China to service the Chinese market obviously the % of vehciles built outside the US will continue to climb so long as production in the US stays the same.

 

As an example:

 

Lets say I own a company making car wax. I produce 100 tubs of wax a year.

 

  • Factory A is in the US and it makes 30 tubs of wax year. (30%)

  • Factory B is in Mexico and it makes 70 tubs of wax a year. (70%)

 

I learn that China has a growing number of detail enthusiasts, as many as the US and Mexico combined. The government makes it prohibitively expensive to ship my wax there, so the best move it to make my wax there to sell it there. Especially when theres a competitor Chinese company that makes its wax cheaper and sells it cheaper in the US and mexico which erodes my market shares at home. I have to compete to stay viable so to capture market share I want into the Chinese detailing market.

 

So I open Factory C in China and due to demand it makes 100 tubs of wax a year.

 

So now my total company production is 200 tubs of wax.

 

  • 100 made in China (50%)

  • 70 are still made in Mexico (35%)

  • 30 are still made in the USA (15%)

 

So the quantity of the product I make in the US is still the same, still producing the same 30 units as I was before the China factory was added, yet its now a lower overall percentage of my total.

 

If I wanted to take the approach of that video I would completely omit the production quantity, treat everything as a percentage and say
"Dylan's wax company is producing 85% of its wax outside of the US, an increase of 15%!"
or
"The percentage of Dylan Wax produced in the US has been cut in half"
The reality is that no more or less wax is being made in the US... it didn't change from scenario 1 to scenario 2, but by presenting the numbers in a different way it would seem as if I was scaling back US production.

 

See how they're playing with that there? Its never a good idea to swallow these youtube videos hook line and sinker... theres always an agenda somewhere. View anything like this with a level of skepticism and critical thinking. You can manipulate facts and figures to prove any point.

Edited by Dylan@Adams
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Its all in the manipulation of the figures Bill.... they focus on that "70% OF THIER VEHICLES WERE NOT BUILT IN THE US" what they didn't touch on is that its been that way for some time with most manufacturing happening in Canada or Mexico. They further manipulate that point by saying "its only going to get worse" ... well yea! If they open manufacturing facilities in China to service the Chinese market obviously the % of vehciles built outside the US will continue to climb so long as production in the US stays the same.

 

As an example:

 

Lets say I own a company making car wax. I produce 100 tubs of wax a year.

 

  • Factory A is in the US and it makes 30 tubs of wax year. (30%)

  • Factory B is in Mexico and it makes 70 tubs of wax a year. (70%)

 

I learn that China has a growing number of detail enthusiasts, as many as the US and Mexico combined. The government makes it prohibitively expensive to ship my wax there, so the best move it to make my wax there to sell it there. Especially when theres a competitor Chinese company that makes its wax cheaper and sells it cheaper in the US and mexico which erodes my market shares at home. I have to compete to stay viable so to capture market share I want into the Chinese detailing market.

 

So I open Factory C in China and due to demand it makes 100 tubs of wax a year.

 

So now my total company production is 200 tubs of wax.

 

  • 100 made in China (50%)

  • 70 are still made in Mexico (35%)

  • 30 are still made in the USA (15%)

 

So the quantity of the product I make in the US is still the same, still producing the same 30 units as I was before the China factory was added, yet its now a lower overall percentage of my total.

 

If I wanted to take the approach of that video I would completely omit the production quantity, treat everything as a percentage and say
"Dylan's wax company is producing 85% of its wax outside of the US, an increase of 15%!"
or
"The percentage of Dylan Wax produced in the US has been cut in half"
The reality is that no more or less wax is being made in the US... it didn't change from scenario 1 to scenario 2, but by presenting the numbers in a different way it would seem as if I was scaling back US production.

 

See how they're playing with that there? Its never a good idea to swallow these youtube videos hook line and sinker... theres always an agenda somewhere. View anything like this with a level of skepticism and critical thinking. You can manipulate facts and figures to prove any point.

 

Penn & Teller did an entire episode on this for their show BS that showed how numbers can be manipulated to make any point you want. It's all how they're presented, and they can be made to fit any agenda wanted.

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Penn & Teller did an entire episode on this for their show BS that showed how numbers can be manipulated to make any point you want. It's all how they're presented, and they can be made to fit any agenda wanted.

 

Ahhh the numbers game....lol. I see it first hand at work everyday, and how the tell us we all s**k, and yet they are posting record profits. Wonder how that works. My SPORH as it is called (stops per on road hour) is the pretty close to the same every day and yet my over allowed (time the company thinks it should take) can fluctuate an hour.

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Ahhh the numbers game....lol. I see it first hand at work everyday, and how the tell us we all s**k, and yet they are posting record profits. Wonder how that works. My SPORH as it is called (stops per on road hour) is the pretty close to the same every day and yet my over allowed (time the company thinks it should take) can fluctuate an hour.

 

Those are always fun meetings... ;)

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Its all in the manipulation of the figures Bill.... they focus on that "70% OF THIER VEHICLES WERE NOT BUILT IN THE US" what they didn't touch on is that its been that way for some time with most manufacturing happening in Canada or Mexico. They further manipulate that point by saying "its only going to get worse" ... well yea! If they open manufacturing facilities in China to service the Chinese market obviously the % of vehciles built outside the US will continue to climb so long as production in the US stays the same.

 

Dylan: Oh how it pains me :lol: - "Excellent" presentation/outline/example. So why are you a wax salesman?? :jester:

 

On a serious not, it's been more years than I can remember, or even want to remember, but when I was going to college, I do not recall any Professor, in any class/subject make as much sense as you just did. And I'm not ashamed to admit you just taught me a few things. As I've often posted on here "Knowledge is priceless."

 

How's your credit rating? Mines excellent! So we open a huge detailing business here in the US and then do the same in China. :confused:

 

Thank you my Friend. :2thumbs::rockon::cheers:

Edited by Dylan@Adams
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