By on October 21, 2010

The feared takeover of the world by Chinese cars so far was a non-starter. We’ve always said that cars built at Chinese joint ventures with Western (or Japanese) companies would be best suited to break that spell. But so far, the Western (or Japanese) joint venture partners wouldn’t play ball. Why invite a Chinese joint venture abroad where it competes in your markets? Now the first international brand will export a low-end car it developed for China to Latin America. For starters.  Guess who?

Congratulations! You guessed right! Shanghai GM, a joint venture between GM and China’s SAIC Motor Corp, started to export Chevrolet New Sail autos on Thursday to Chile, Economic Times reports from India. The New Sail was introduced in January in China, at a price of $8,540, set against names like Geely and Chery.

The New Sail is a Chevrolet, and “the first locally developed and manufactured passenger car from an international brand to be exported,” Terry Johnsson, Shanghai GM vice president of vehicle sales, service and marketing, said in a statement. “It represents a breakthrough in our strategy to create products for China and other emerging markets.”
The  small family sedan will eventually be sold in all of South America, North Africa and the Middle East. If this is successful, analysts expect other multinationals to follow.

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26 Comments on “The Yellow Peril Is Us: Multinationals Start Exporting Cars From China...”


  • avatar
    ott

    I like it. Why not bring it here?

  • avatar
    Zackman

    Well, it was only a matter of time.

    I can see this now: GM building a transplant factory to build GM/Chinese cars here to take advantage of lower labor rates. GM vs. GM vs. GM. This somehow reminds me of an old song: “I Am My Own Grandpa”! Awesome!

  • avatar
    Stingray

    Mr. Schmitt, SAIC-GM already was exporting the Wuling thing to Colombia and selling it like the Chevy N200 or something since last year.
     
    So yes, they’re the firsts, but they already did the trick.
     
    For proof: chevrolet.com.co
     
    The  small family sedan will eventually be sold in all of South America, North Africa and the Middle East. If this is successful, analysts expect other multinationals to follow.
     
    The comic part is that at least in Venezuela, it will be like the Aveo/Optra/Spark. When Daewoo sold the cars, nobody wanted them, with a bow-tie, they’re the gotta haves. When the Chinese came…

  • avatar
    cmoibenlepro

    GM should export as much Chinese cars as possible, if the higher margins help the company to make more profits and therfore reimburse an higher amount to the taxpayers.
    I completly agree.

    As long as taxpayer isn’t reimbursed, I don’t care about exporting jobs to China.  Anyway, the UAW is a big shareholder of GM so they will profit too.

  • avatar
    Rod Panhard

    That’s great news. Let’s suppose GM makes $500 on each unit. So if they sell six of them, that almost offsets the incentive packages needed to get their hardware out of showrooms in the U.S. Three cheers for Chile!

  • avatar
    slavuta

    DECLARATION
    I will never buy a Chinese car or car made in China or car with majority components from China.
    I will not buy car made in Mexico unless the only other option – China
     
    My dollar is a vote. And I vote against our or any cars being assembled in China and/or Mexico

  • avatar

    So nobody is worried that GM has to split the profits with the “Chicoms?”  Or leave them with all the profits, because it’s impossible to get your money out of China, as a certain hardline faction claims?

    • 0 avatar
      porschespeed

      GM (and the rest of the multinats) book the ‘profits’ on their P&Ls, but don’t actually repatriate the yuan… So that ‘argument’ is hardly valid. These unredeemed profits fool the fools who don’t understand how to read a 10Q. Just another way to exploit the undereducated  mittelklassse in the US.
       
      Enron never fooled anyone with an IQ over 130 as it was all in the filings.
       
      I refer to the Chinese Communist Government as Chicomms because, well, they are. While the closest thing to definitive/actual “communism” in the last hundred years has been Cuba, please give and example of how democratic the PRC is. Please. Grossly perverted capitalism like the USSR (but smarter) you betcha.
       
      Sure, more accurately the Chinese are “police-state-oppressor-capitalist-overlords” or some such, but the fact of The Party, is, well, The Party.
       
      Enjoying what little freedom we have remaining in the West? Hardly…
       
      Please show the multinat that has pulled over $100MM USD equivalent in cash out of China on a moment’s notice like you can in the US. Just one example please. Let alone real money in the 500MM to 1B+ range. Let alone 10B+.
       
      Common knowledge that BoC will make it nearly impossible for you to do so. No, pulling chumpchange 1-10MM USD doesn’t matter and they don’t care. It’s good for the show. Move some REAL money and you have an argument, but no matter how hard I try to find an example, there just isn’t one.
       
      Do you watch BskyB/Fox/Murdoch product? Because it seems you have their lines and silly ploys rather well memorized… Just curious…
       
       
       
       

    • 0 avatar
      Jellodyne

      I’m pretty sure GM buys enough parts in China that there’s nothing left to ‘get out’.

  • avatar
    porschespeed

    Oh yeah, all my statements are easily verified by googling.
     
    What’s that? Can’t google in PRC?

    • 0 avatar
      atlas_snored

      While you were busy bashing some foreign nation for its communist policies, er lack of free speech, their “communist” industries have been expanding and gobbling your lunch. 

      Yet for the past 3 decades, the supposedly accountable and democratic United States has had corporate led deindustrialization and the consequent marginalization of much of its former middle class.  Where was the accountability in the supposedly democratic United States?  Did the evil Commie Chinese plant Manchurian Candidates to somehow spur the US corporate and political elite to abandon its constituents?  Why do you bother harping on a foreign nation that actually is improving its living standards?  Go read some political economy textbooks. Right now your posts are just reflective of the emotionally charged talk radio/tea bagger hotheads.

      But like a lot of Americans, you’ll continue to focus your ire on a convenient yet incorrect target.  Your corporate overlords and their political minions are laughing as they continue to profit from their investments in China, yet you’re off on a tangent.  Go ahead and send a rebuttal.  The managers at GM and their Cayman Island bankers are thankful for mindsets like yours.

    • 0 avatar

      Google is a wonderful invention. It will always tell you what you want to hear.
      Want to hear that the world is flat? No problem. Google will tell you the world is flat.
      Want to hear that Porschespeed is dangerous? Voila. Google obliges with some 600,000 hits.
       
      PS: Google links inserted in downtown Beijing.

    • 0 avatar
      porschespeed

      atlas_snored,
       
      Obviously you have never actually bother to read (or perhaps comprehend) my posts.
       
      I have always laid the blame squarely where it belongs: the enemy is us. (By ‘us’ I do mean the 1% who has manipulated the US gov into writing legislation to favor offshoring industries and jobs to the Third World…) Short term greed is never good.
       
      Bertel
       
      Actually googling “porschespeed is dangerous” will yield a whole 362 results. Were one to use the goog ‘search instead of porschespeed is dangerous’ with the resultant “porsche speed is dangerous”  would yield your result numbers. But just like Palin, those facts are, umm, incongruent with reality.
       
      ‘Natch, who let’s facts get in the way of a good story.

    • 0 avatar
      atlas_snored

      Unfortunately I’ve read one too many of your barely comprehensible posts. 

      Cool it with the Cold War propaganda.  Non stop vilification of supposed Commies and their limits on free speech.  You spew it so much, you’re probably amongst the dwindling numbers of Americans who conflate our theoretical “freedoms” with some exceptionalist superiority. 

      Dude, if they were true Commies, they wouldn’t be crushing our plutocratic and hypermilitarist crony economy, but you don’t get that.  Or maybe you do, but do an awesome job of keeping quiet. You don’t even realize the US backed VERY similar authoritarian but economically progressive regimes in South Korea and Taiwan.   You sound just like the Congressmen who ape the tough on Commies line, yet simultaneously sponsoring bills allowing the gutting of the industrial base and the non prosecution of sophisticated tax accounting/tax dodging schemes.

      Doesn’t matter though, you’ll come back with the same schtick.  If bashing foreigners works as a deflection for politicians, I suppose it should work for you too. 

    • 0 avatar
      porschespeed

      Atlas_snored,
       
      Obviously you can’t comprehend what I have written since day one- for the last 30 years we have given away the US economy to the Chinese for the benefit of the (very) few here in the US.
       
      If my posts are ‘barely intelligible’ to you, I pity your level of education. There are plenty of post-doc Fellows that will tell you exactly as I have. Guess it’s that O’reilly/Hannity “elitism” that prevents your comprehension of the obvious…
       
      Bertel is at least prudent enough to shy away/ignore anti-Chinese posts based on fact.
       
      Please, do bring it. I love a cogent debate. (Sadly, you don’t have one yet…)
       

    • 0 avatar
      atlas_snored

      Maybe the fact that you’re constantly referring to commies or google censorship or ‘freedom’ like the astroturfed teabagging idiots is an indicator of your questionable understanding?  That’s basically your whole point, you never saw anything else.  You can pity me, but you haven’t actually written a substantive rebuttal. 

      Instead of blaming the foreigners who are actually improving their economy, you should focus on the various oligarchs who have gutted ours from within.  Won’t happen though.  Hopping on the xenophobia train (e.g. your incessant comments about the out-group’s nefarious nature) is just a great deflection tool.  I’m not sure if your posts are motivated by OCD or whatever, but unless you diverge from the tautological, there’s no point to responding to further responding to you.

    • 0 avatar
      porschespeed

      Oh, atlas_snored,

      You show the sum of all Faux-news/Palin talking points for the uninformed. Thankfully, some here are still literate.

      We all know full-well that China would still be a Third-World backwater were it not for a tiny fraction of Americans getting their greed on and granting MFN status to China.

      Period.

      They’d be accepting IMF loans for the Three Gorges (or it just wouldn’t happen, like it didn’t for years) were it not for political chicanery here in the US. Duh effen duh.

      Once again, you have obviously never read one of my posts, and respond in some retardo-Rovian manner any time someone knows the facts and has an IQ north of 150.

      Please feel free to quote one, just one, of my posts that indicate in any anyway that I am not fully aware that a tiny few in the US gave up our manufacturing supremacy to the ChiComms for a relative few dollars allocated to the .1% who own those who make the law in the USA. Please. Oh wait. You can’t.

      I know it, and if you have actually read my posts, so do you. Toss straw-man arguments all you want. I’ll call you on them.

      Snored? Oh yeah, the lack of any cogent argument gives me one…

  • avatar
    Carlos Villalobos

    Actually, GM Chile has been importing cars from China like from 2 or 3 years now. It was the Corsa. Instead from bring it from Brazil, it was cheaper to import it from China. Is a sedan.


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