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Volvo, BMW, and Mercedes Cars From China? Possible?
It looks like many European car manufacturers are assembling/manufacturing cars in China. Is it possible to see Volvos, BMWs, and Mercedes made in China coming over here in the future? With the labor cost so much lower than the US, and outsourcing that our President encourages, what can prevent these cars, made to US crash and emission standards, from coming here?
http://news.bbc.co.uk/2/hi/business/4824088.stm |
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81 300SD 08 MDX Tech 93 525i 05 F650GS |
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Now if the Chinese have a domestic market or regional Asian market that would justify building a factory in China, good for them. Personally, I resent sending jobs to China because their people will work for slave labor wages. Do you think Mercedes will pass on any of the cost savings to the retail buyer? The Chinese Communist Goverment has little respect for human rights, the enviroment, and safety standards. That would be reason enough for me to boycott a Chinese made Benz. BMW, Ford, or whatever. But hey, most people don't have any moral's these day's when it comes to buck. ![]() |
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I believe that any production by MB or BMW in China would be for the domestic market - it's growing a lot faster than ours.
To take the point further, though, most Golfs, Jettas and Beetles imported to the US are made in Volkswagen's unionized plant in Puebla, Mexico, which paid it's workers around $3.00 an hour as of a couple of years ago. Most of the Ford Focuses and Fusions sold in the US are also made in a unionized Ford plant in Mexico - I don't have their wage levels, but I'm sure it's a lot less than in Detroit. Would you boycott those cars because the workers make a fraction of UAW wages? Would it matter to you that those are some of the highest industrial wages in Mexico, and that those workers' quality of life would be seriously diminished if they lost their jobs? They probably wish you'd buy more of their cars so production would increase and more workers would be hired - but hey, most people don't have any morals these days when it comes to a buck. ![]()
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81 300SD 08 MDX Tech 93 525i 05 F650GS |
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Those factories will be building cars for the Chinese market...China charges a large import tax on foreign made cars...car makers can greatly reduce their car prices by building locally in China and get a head-start into the very hot Chinese luxury car segment...but I believe the factories will focus mostly on the bottom-end models...i.e. C-Class, A-Class, etc. These models that are being sold in Asia are mostly being produced in South Africa anyways...
It is not a new phenomenon...Ford, Toyota, Honda, Mazda, etc. have factories in Taiwan that build cars only for the local market because Taiwan charges a high import tax on foreign cars...car makers have factories located locally in many Asian countries to build cars for the local market if it is viable...
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Last edited by 450slcguy; 03-20-2006 at 06:41 PM. |
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Lets see. I want to buy a new Mercedes. It is currently built in Germany and costs $65K. Mercedes opens a plant in China and offers the same model for $50K. The plant is run by Germans designed by Germans and builds things to German QA/DC standards. I'd buy the one that costs me $15K less. Since Chinese labor costs are 5% of German labor costs the profit margin is huge. Stockholders of DaimlerChrysler get a larger dividend. Folks who own broad-based mutual funds in a 401K see their fund value grow. I get a great car at significant savings. What will I do with the $15K I saved?
Maybe I'll go to the nearest Indian-owned casino and place a $15K bet on 22 red, thus donating a proportion of my $15K to the poor Indians of Penobscott. Maybe I'll expand my liquor closet with 20 year-old scotch, sending a bit of money to some distiller in Scotland and distributor in the USA. Or maybe I'll stick it into passbook saving account for rainy day. The bank would then have another $15K to loan to somebody wishing to buy a house or new car. Etc. The point being that saving money on a retail item gives me an opportunity to spend that money elsewhere or save it. My money, my choice. Bot |
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![]() Difference is alot of people in Germany will loose their jobs while a few execs. and the large stockholders get huge bonuses/dividends for ridding the factory of the "skilled and experienced German auto worker". Would you really prefer to have your Benz built in China? Probably would if your one of "them". What make's you think the engineering wouldn't be next to get outsourced, or the QC, you can get 10+ Chinese engineers vs. 1 German one. One thing thats for certain, the top management will stay in Germany. That's what's happening in this country USA, wouldn't be any different in Germany. ![]() |
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So you wanna boycott those products, do you? In the early 80s I bought a TI-54 calculator that was proudly stamped "Made in the USA". One day I took it apart and found Chinese, Taiwanese, Philippinese, etc, etc components. So, where do you draw the line? When you run out of clothes to wear and have to hunt animals for their pelts? You watch. Vietnam is going to surpass the Chinese in textiles. What will you wear then?
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01 Ford Excursion Powerstroke 99 E300 Turbodiesel 91 Vette with 383 motor 05 Polaris Sportsman 800 EFI 06 Polaris Sportsman 500 EFI 03 SeaDoo GTX SC Red 03 SeaDoo GTX SC Yellow 04 Tailgator 21 ft Toy Hauler 11 Harley Davidson 883 SuperLow |
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01 Ford Excursion Powerstroke 99 E300 Turbodiesel 91 Vette with 383 motor 05 Polaris Sportsman 800 EFI 06 Polaris Sportsman 500 EFI 03 SeaDoo GTX SC Red 03 SeaDoo GTX SC Yellow 04 Tailgator 21 ft Toy Hauler 11 Harley Davidson 883 SuperLow |
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But German workers may lose. What can they do about that? They can increase productivity, they can find another job, they can take a pay cut, lobby his government to lower the tax burden on the company, remove regulations that make the company less competitive with other countries or they can whine about it. Whatever the worker decides is his decision to make. A worker, whether CEO or sweeper is just a cog in the corporate machine. If a better cog comes along, well that's life. What some people want is for gov and industry to get in bed together in an unnatural, incestuous relationship on the misguided assumption that the workers will benefit from gov and corporation working together. Most corporations that tie themselves closely to government decay from the inside and become a dumping ground for retired bureaucrats who become lobbyists, entangling the obscene coupling in whole new avenues of bribery and corruption. B |
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