Ford's Mulally: Chinese Car Exports Wonderful
For many years, U.S. automakers warned against the red menace of millions of cheap Chinese cars flooding a helpless American market. It never happened. What finally got the Chinese export machine going a little bit was GM, which started shipping Made-in-China Chevrolet Sails. The Sails convinced buyers around the world that those Chinese cars aren’t as bad as thought, and now China exports around 5 percent of its production. GM expects to export between 100,000 to 130,000 vehicles from China this year, and wants to more than double the number by 2015.
Ford chief Alan Mulally today joined the ranks of people calling for increased Chinese car exports. He’s ready to export Fords from China.
“I think it’s just a matter of time,” Mulally said when Bloomberg asked about Ford exporting from China. “Over time, all of our facilities are positioned so we can support all the markets around the world from any location.”
Remember: Their red menace bad. Our red menace good.
(Due to popular demand, we continue in our series of government-sponsored propaganda posters. No need to point out that they are not PC. That’s why we pick them.)
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I'm an automotive historian, and have to say that truth be told, in terms of the health and welfare of the United States economy, the US/Canada auto-pact of 1965 followed up by NAFTA and free-trade agreements with various nations not to mention "One Ford" has been a disaster. Google hiroshima vs detroit 64 years later. That's all you need to see. And yes, the UAW did get "out of control" and did help to cause the problems. It wasn't just the auto industry head honchos.
Mulally's comments towards the Japanese market: From Bloomberg: Japan is “absolutely” manipulating its currency, the CEO of the second-biggest U.S. automaker said in a Bloomberg TV interview Thursday. “With the currency manipulation, we just have to get back to the place where the currencies are set by the markets and the free trade agreements really are free trade agreements.” Mulally reiterated his concerns that Japan is a closed market for U.S. automakers, who’ve hired lobbyists to oppose Japan’s bid to join negotiations aimed at creating the Trans- Pacific Partnership, a regional free-trade agreement. Japanese carmakers account for more than 90 percent of sales in their home market. “It’s just the most closed market in the world,” Mulally said Thursday. Pretty harsh words...and not 100% accurate either, from what I've read about the Japanese market from more informed persons than myself here at TTAC.
I'm shocked. Mulally has been painted as a paragon of American industrial management ability, savior of an American industrial icon. Now it turns out that under his suit, he's another one of them pinko commie preverts willing to ship American jobs overseas. I'm shocked.
What I'm finding odd is that their are people here not realising that GM, Ford and Fiatsler are making automobiles in China. This benefits the US. What vehicles are the Chinese auto manufacturers manufacturing in the US? I would like to see some Chinese auto manufacturers setup shop in the States. Also what components are manufactured in China and sent to the US? Dana makes axles there, Borg Warner transfer cases, Getrag make MT82s that are fitted to Mustangs, and the God of US diesels make a fantastic little ISF 2.8 diesel that will be fitted into future Titans. The world is globalising guys, get used to it. As I've stated in the past having insular and protected markets will only cost taxpayers, reduce efficiency and progress in any market. Thinking you are protecting US jobs by protectionism is only a short to medium term solution. This type of interference should only be used as an interim measure whilst you restructure your economy and become competitive again.