MyFoxDetroit

Does the Big Three look forward to China's bluer economic skies and cheaper work force? By spiritsoup

With the U.S. dollar on the decline and gold and oil soaring to record heights I sit pondering the out come of this
economic situation we have found ourselves in.
There is most assuredly a cornocopia of reasons for this sad state of afairs,
From fiscal irresponsability on both the state and federal levels of government.
Over extention of the empirialistic policies of the 20th century,the welfare state and aministy policies. Income tax funded government coups in forein lands, or the hap-hazardous printing of the U.S. dollar to fund classified and unclassified projects that serve the few at the cost of many. But the one that worries me the most of all, a debt generating fiat currancy and all the while promoting rampant consumerism fuled by an advertisement based culture to enslave us in debt.
I find it ironic that the ads spoke of the prestidge of having the biggest gas guzzling SUV you can afford and America bought them in record numbers...A huge shot in the arm for the auto industry. But to the consumer, now with gas prices through the roof, a dollar that is behind Canada's and a $300 car note...it's a shot bellow the belt.
Now we begin to see, here in Michigan what happens when the bottom drops out of the dollar in a city that had all it's eggs in one basket. And the scarist thing of all is that it will only get worse.
As the U.S. Dollar falls and things get tougher across the nations there will be less capital in America to purchase the bread and butter of Detroit...Big Three Auto's.
We have already seen, (here in Detroit) the slow steady trickle of impoted parts that were the backbone of local small business become a torrent. The shuting of plants that help create ghost towns like Flint. All the while the auto industries telling us not to fear as they pollute the surroundings and letting their abandoned properties fall into ruins
Michigan has been a topic on the Debate floor as we are used to pay lip service to economic change...though only Ron Paul seems to have any realistic plan to steady the ship of our crumbling economy before it is dashed upon the rocks. The bottom line is that the only change we are likely to see (barring a mirical)is more out sourcing and fewer jobs.
As the nation falls further into recession we might very well see the big Three packing up operations and heading to China. To think that they will chose to stay in this country as it's economy falls and taxes are raised to cover the debt from over barrowing and inflation would be corporate suicide.
It would only make sense to place your factories closer to the source of parts not to mention the fact that Chinas government policies quite frankly make a union impossible to start or even maintain if you did. Which behoves the big three's executives I'm sure.
In 2006 CBS reported that Ford Motor set record sales in China selling 82,225 vehicles, Ford projected further growth ahead. The article goes on to say, "For Ford Motor Company in China, 2005 represented a record year of sales increases," said Cheng in the statement. "We're quite confident that Ford Motor Company as a whole will again see a significant growth in total sales volume in China in 2006."
It also spoke of General Motors topping the list of imports.
GM said on Jan. 4 that its China sales in 2005 rose 35.2 percent to a record 665,390 vehicles, showing it had surpassed VW, which reported it had sold 570,876 vehicles in China last year without providing a percentage change.
These stats and hearing from a source inside TyhssenKrupp (a Lichtichstien based parts company whom supplies shocks, struts, steering systems and drivetrain componance amoungst a slue of electronical parts to Ford) that the sales staff have been more and more often going to Mexico, Brazil, and China for the Sales meeting for Ford auto.
With China's standard of living rising and the grim news from the 2008 Rueters Auto Summit.
Reuters reported

"While I am very negative on the autos sector over the next 12 to 18 months, I'm just not sure how bad it could be," York, a former board member of General Motors Corp (GM.N: Quote, Profile, Research) and chief financial officer of Chrysler, said at the Reuters Autos Summit in Detroit. "We all know housing is a debacle."

U.S. light auto sales could slip to 15.5 million or less next year, York said. That would be down from near 16 million this year, a drop of 3 percent to mark the second consecutive annual decline and the lowest tally since 1998.

Stallkamp, a partner at private equity firm Ripplewood Holdings, which owns several auto parts makers, said the market could slump to 14.5 million, the lowest level since 1993.

"I'd say it's somewhere between 14.5 (million) and 15 (million), somewhere in there and it's hard to tell," he said. "Today, I'm a little more towards 14.5 (million)."

Granted the Big Three aren't turning those kinds of numbers in China...yet.
And yet is the key word, the market there has a Billion people. If ten percent of their population in the next few years have thier standard of living go up to the point they could afford a GM or Ford, or just as fisable their economy booms and the yen gains large ground in the fiat money system, could cause lights out for the American people and usher in a Depression unlike we have never seen.
I wonder where the auto industries loyalties lie, in the people whom they have lied to and and renigged on. Or in the international banks where their monies lie.
I fear that we may see, sooner then we think.
With the unwelcomed push into globalization and an all to real Noth American Union on the Horizon as reported by Lou Dobbs

(article continues below)

Verachips, the merging of local police and military, the (Un)Patriot act.
Seizing guns from law abiding citizens when they should have been helping them under the flimsist of excuses.
The stage...to me anyway, seems to be getting set for Military Law right after a montserous economic crash,.
When the Great Depression came this country was 81% rural, we still as a nation had alot of farms and space, now that is not the case. We import food and live mainly in city areas incapiable of yeilding any kind of substancial crops. With this talk of terroism, no one talks of the undermining of our nations finacial structure by
the Federal Reserve which is the true terror.
I just pray that I'm wrong.

spiritsoup's Blog

Bluer ecomonic skies and cheaper work force

spiritsoup

Inside Fox:
About Us Politics Morning News TV Listings Contact Us

Write your comment below: Email me when a new comment is added to this entry