dlq04

Our dynamics with China is an odd one. We buy billions of dollars worth of goods each year but we have super conflicts with them due to their human rights record, low wages, etc. Can you imagaine the uproar if Fiat was a Chinese company rather than an Italian company. No matter, predictions are the the Chinese are coming and they will likely be buying up much of what's left behind from Chrysler and GM.

RC - Ryder

We'll let the Chinese in big time before it is over, because the government is beholden to the Chinese and needs them to continue to buy our debt. Though this will result in some much needed american jobs, we will live to regret their presence.

dlq04

There's no way to stop the wave, so we might as well ride it out.

WhiteS2k

Unfortunately, a lot of the "knowledge" workers are now overseas and not in the US -- sadly, few Americans are interested in those jobs. My employer has moved a lot of product development jobs to China, India, Russia, Israel, and so on. It is not just because the brains are there, it is also because the markets are there as well. Local customers are more favorable to buy products from a company that has a presence in that country, compared to buying from a "foreign" company.

WhiteS2k

I was also wondering about this. I read through this whole thread and did not see an answer to this question. So how is GM saving money by closing their dealers (which are independent businesses)? It seems to me that GM will lose business with less dealerships.

dlq04

GM wants to follow Toyota

Traveler

I'm pretty sure that the 16000 who were laid off were interested in those jobs.

WhiteS2k

Well, around the SF Bay Area, we have 5 Honda dealers just in the South Bay, we have just as many Toyota dealers. But we used to have three Chrysler/Dodge dealers and now we are down to one. We used to have two GM/Pontiac/Buick dealers and now one of them is closed. There are still a few Chevy and Ford dealers, but I've also seen some of them closed recently. So how is one Chrysler/Dodge dealer going to compete against 5 Honda dealers?

I buy a new car every few years, but I service my car every few months. So one of the buying decision is "how convenient will service be?" With fewer GM/Chrysler dealers to service my car, I know I'll probably buy another Honda (or Toyota) because I know I don't have to go far for service.

dlq04

Sell Fiat's. At least, that's the plan.

RedY2KS2k

And with the new Corporate Average Fuel Economy standards announced today, it might work. We may return to the era of selling small cars at a loss to offset the CAFE effect of the sale of a gas hog or two at a big profit. That, or $5/gallon gasoline, is the only way I see the American buying public embracing small cars.