If GM and Chrysler go out of business....

[techs]

will foreign automakers build more American plants to produce cars to make up for what GM and Chrysler made?
Or will they just import them from other countries?

 

[EagleKeeper]

What will be more cost effective

 

[TankGuys]

Since there's existing production infrastructure and trained labor already in the US, I'd say that at least in the short term, it would be more economical to resume production at existing facilities than to open up whole new plants over seas.

 

[Genx87]

Originally posted by: techs
will foreign automakers build more American plants to produce cars to make up for what GM and Chrysler made?
Or will they just import them from other countries?

Depends on how quickly we recover. They have been building plants in the United States to supply our markets. If these two companies go out of business, as in nobody buys their assets and their manufacturing ceases to exist. I suspect the foreign auto makers would either build new factories or take over current manufacturing capacity of these two and supply our markets.

But we also dont know the effect of cap and trade and any other regulation\legislation that will hurt long term profits.

 

[MotF Bane]

The government won't let that happen.

 

[Fear No Evil]

I think its quite possible we have an over capacity to build cars, and there may not be a need to replace them. Especially if people continue to use their existing cars longer due to Obama making our bad economy even worse. (Had to do it).

 

[dullard]

They'd sit idle for a bit. But with the factories selling for almost nothing in forced bankruptcy sales in a recession, and with a bunch of idle workers desperate for a job (ie significantly lowered wages), someone will sweep in and restart production. That will be far cheaper than building new factories in new locations and training new workers.

 

[CPA]

Originally posted by: MotF Bane
The government won't let that happen.

Exactly, they will be become the Amtrak of the auto industry. Sad, but true.

 

[JeffreyLebowski]

Tata motors or Sunny from China will buy them up and use them.

 

[heyheybooboo]

Originally posted by: Genx87

Originally posted by: techs
will foreign automakers build more American plants to produce cars to make up for what GM and Chrysler made?
Or will they just import them from other countries?

Depends on how quickly we recover. They have been building plants in the United States to supply our markets. If these two companies go out of business, as in nobody buys their assets and their manufacturing ceases to exist. I suspect the foreign auto makers would either build new factories or take over current manufacturing capacity of these two and supply our markets.

But we also dont know the effect of cap and trade and any other regulation\legislation that will hurt long term profits.

The primary motivations for foreign auto manufacturer investment in the US (and North America) was the fear of embargos and quotas.

Originally posted by: JeffreyLebowski
Tata motors or Sunny from China will buy them up and use them.

GM's rebirth begins with a trickle of China imports in 2011 (and most likely a flood shortly thereafter).

 

[soccerballtux]

Originally posted by: techs
will foreign automakers build more American plants to produce cars to make up for what GM and Chrysler made?
Or will they just import them from other countries?

It's not that they'd build more plants, it's that they wouldn't have to lay off any workers; and their workers could return to full time work (currently they're on 34 hours IIRC).

This is how the free market is supposed to work. The inefficient, poorly managed companies die, and the business goes to (rewards) those that were being managed better. If you interfere with this, you both remove the incentives for the company to design a better product, and you remove the disincentive to being poorly managed.

 

[TheSlamma]

Remember this article from a few years back

http://forums.motortrend.com/7...cans-stupid/index.html

 

[MikeMike]

suppliers would go bankrupt, Toyota, Honda, Nissan, would have major supply issues and face massive losses, foreign governments would bail them out...

 

[magomago]

I think Chinese companies would enter, especially if prices are a bargain. Their car companies are just waiting to mature so they can enter our market anyways.

 

[Ktulu]

Originally posted by: techs
will foreign automakers build more American plants to produce cars to make up for what GM and Chrysler made?
Or will they just import them from other countries?

Toyota is losing billions as we speak, Honda is just getting by just like most other foreign automakers. If the domestics die off completely this will only hurt things further, maybe not the grand scale that was speculated months back but enough to affect the foreign automakers even more. I doubt they'd be looking to spend anymore money on infrastructure and hiring more employees. They'll be trying to save their own necks. At least that's the way I see it.

 

[Chunkee]

So what is the solution? Keep pouring tax dollars into these companies while no one buys the products? Keep paying people not to work? To pay people benefits that are not working? This must stop at some point...meanwhile, schools are in bad need of renovations, expansion and teacher salary increases.

This swirl down the drain is only a symptom of a society that pays people to hit white balls a certain distance millions and millions of dollars while those that educate and take care of your children all day barely are making ends meat. We are reaping what we sew. We care more about whether or not Miss Universe showed her fucking tits rather than cancer centers closing, schools closing, small businesses going under...

You want fucking 4 dollar coffees and a car with a certain emblem on it...you want big screen tvs and mannequins broadcasting bullshit all day... you got it...all part of the same fucking thing.... PRIORITIES of western culture. This shit is starting to hit the fan and the answer is to print more money, turn the fucking head and blame someone else. Idiot sheeple. Get a damn clue. Keep chasing Osama, keep turning your back on Darfur, keep Israel fucking happy, borrow more from China (soon they will own everything as well as make it), ....allow yourselves to be distracted by what is really going on... the select few that hold the money and the power govern how the rest of us live...they set the standards, the means, the worth... democracy my arse...get real!!!

 

[Lemon law]

First of all, its not an if, Chrysler has gone Bankrupt. Now who will assume their pension obligation's. Because if Fiat does not, Uncle sucker is on the hook and its partly why the UAW has a share of the deal. Fiat would be a fool if it did not use some of the old Chrysler plants, employees, and suppliers in the USA to produce better designed automobiles.

Where does the assumption that the former owners of Chrysler who ran the company into the ground should be the only ones to cash out, stripping all remaining assets from the dead body, while abandoning everyone else who have legitimate obligations also.

Sorry Charlie, that Golden parachute just developed a big hole and quite rightfully so.

The old King is dead, long live the new King named Fiat.

As for the investor class who will no longer see a no investor left behind governmental policy, its a wake up call, you allow your investments to be mismanaged, you are going to lose your ass also.

There are no surprises here, many smart people have been warning US auto makers to adapt to new realities for half a century.

 

[AnitaPeterson]

Absolutely... after all, people like to change their cars every 4 years, the leasing system is a wonderful invention, which greatly benefits the economy in the long run, and ensures a steady stream of revenue for the banks, and Joe Sixpacks need factories to make new toys for them... whatever happens to the old cars is no longer anyone's concern - more junkyards all over the place, yay!

 

[miketheidiot]

Originally posted by: Fear No Evil
I think its quite possible we have an over capacity to build cars, and there may not be a need to replace them. Especially if people continue to use their existing cars longer due to Obama making our bad economy even worse. (Had to do it).

i don't think there is much doubt that we have over capacity to build cars.

 

[SSSnail]

http://online.wsj.com/article/...O-20090513-713921.html

General Tao Motors!!!

 

[sandorski]

Both. Picking up the slack, especially after the Recovery will Tax the remaining Corps ability to Supply the Demand. As someone else mentioned though, a lot of the reason Foreign Manufacturers built Plants in North America was to avoid Trade Restrictions. If Both Chrysler and GM go down the tubes, the likelyhood of such restrictions goes down significantly and you might see Foreign Manufacturers Importing more and more, perhaps even closing North American operations. If that were to occur, expect a dramatic new direction in Trade Philosophy, that being not so much as Trade Barriers, but Global Domestic Content regulations.

 

[imported_K3N]

then expect this nation to be on its way to becoming a banana republic, a post industrial junkyard like detroit city.

 

[WhipperSnapper]

Originally posted by: ChunkeeThis swirl down the drain is only a symptom of a society that pays people to hit white balls a certain distance millions and millions of dollars while those that educate and take care of your children all day barely are making ends meat.

The people hitting the baseballs provide entertainment to millions of people and are exceptional at what they do. In contrast your average Education degree holder is on the lower-end of the college-educated spectrum in terms of overall intelligence and ability. Incidentally, teachers are becoming a dime-a-dozen; supply-and-demand.

Keep chasing Osama

The problem isn't that they're fruitlessly chasing him, rather, it's that political correctness and altruism prevent us from exterminating him and Al Queda and the Taliban.

keep turning your back on Darfur

How is sending troops to Darfur in our nation's rational selfish interest? Why not have some other first world nation do it? Why is it always us who has to do the policeman work?

keep Israel fucking happy

You mean, protect and care for the only bastion of reason and Western Civilization in the United States surrounded by an outpost of hostile people with a primitive, barbaric philosophy?

I tend to agree with you on some of your other points.

 

[Jiggz]

GM and Chrysler will never go out of business as long as the American people buys cars! GM and Chrysler will or may never make cars in the US anymore but they'll sure continue to sell cars either made in Asia or in South America! So in the long run it's still U.S. carmakers that get the short end of the deal! Way to go with the Union!

 

[cubby1223]

Originally posted by: SSSnail
http://online.wsj.com/article/...O-20090513-713921.html

General Tao Motors!!!

And to think, Obama's new taxes on U.S. production are still to come!

He'll fix everything! He's the smartest President we've ever had!