GM Begins Construction of $250m Tech Center in Shanghai

by Justin Berkowitz

September 22nd, 2008 11:30 AM

gm begins construction of 250m tech center in shanghai

GM’s burning its way through a reported $1b per month. So shelling-out $250m on a new research and development campus in Shanghai is no biggie. And here’s some PC for your PC: a significant part of the new research facility will focus on developing new green and alternative energy technology (whatever green means). When fully operational in 2009, the new facility will employ some 2500 people. And for those of you inclined to say “yeah right,” General Motors’ Asia Pacific President Nick Reilly says any problems in the Chinese market are all in your head. “Reilly attributed the downturn in the auto market to the Beijing Olympics in August, a sharply declining Chinese stock market, and an increase in fuel prices in June,” the GM suit told CNN Money. “But he added that ‘underlying demand is still there.’ Reilly said he expects vehicle sales to return to double-digit growth this month or next. He said he expects China’s auto market to maintain 10% to 15% growth after this year, without elaborating.” Elaboration? We don’t need no stinkin’ elaboration!

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John Horner on Sep 22, 2008

This is where the argument that patriotic 'mericans should buy Detroit branded cars because the profits and white collar jobs stay in country falls apart. GM is dis-investing in the US and investing in China. How does that help the workers of Michigan, et. al.?

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TriShield on Sep 22, 2008

It helps because the profits made in China (and globally) come back to the US (only to disappear in GM's black hole here, sadly). Microsoft, McDonalds and a huge number of other American comapnies do business globally and invest globally while bringing the profits home. That's the entire point of doing business globally. That's why Toyota roosts here, to take our green back home and reinvest it there, here and elsewhere. It goes both ways and that's how businesses profit.

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Cicero on Sep 22, 2008
It helps because the profits made in China (and globally) come back to the US (only to disappear in GM’s black hole here, sadly). Microsoft, McDonalds and a huge number of other American comapnies do business globally and invest globally while bringing the profits home. That’s the entire point of doing business globally. I think it's misleading to say that profits of U.S. companies doing business overseas come "home" to the U.S. Profits go into the pockets of shareholders. Those shareholders can be Americans, but they are just as likely to be Europeans, Middle Easterners or Asians. This is where the "domestic" brands' "Buy American" argument comes apart. What makes GM "American" and Toyota "Japanese", besides heritage and headquaters location? They both manufacture globally and they both have shareholders -- owners -- all over the planet. I don't know the actual statistic but I wouldn't be surprised if Americans own more Toyota shares than Japanese nationals do. In this light it's difficult to rationalize why GM, Ford and Chrysler have a better claim to taxpayer bailout money than would Toyota, BMW or Nissan. The latter three companies manufacture in the U.S. have a significant percentage of American shareholders, just like the so-called domestics. This just points out the folly of doling out federal benefits to badly-managed companies on the basis of their headquarters locations. If taxpayer money can't be used to prop up Toyota (which would be politically radioactive), then there isn't a good argument for using it to prop up GM either.

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on May 31, 2009

[...] year, it was announced that GM, with the cooperation of PATAC, its JV partner, would begin construction on a $250 million [...]

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