If GM Is The Model For All American Car Companies, Then Why Does It Outsource Two Thirds Of The Jobs?

If GM Is The Model For All American Car Companies, Then Why Does It Outsource Two Thirds Of The Jobs?

At a Colorado pep rally, President Obama praised his GM bailout as an example for American industry to follow.

“The American automobile industry has come roaring back…So now I want to say what we did with the auto industry, we can do it in manufacturing across America. Let’s make sure advanced, high-tech manufacturing jobs take root here, not in China. And that means supporting investment here. Governor Romney … invested in companies that were called ‘pioneers’ of outsourcing. I don’t want to outsource. I want to insource.” Applause!

 


Read Article

chewychewy - 8/13/2012 5:21:19 PM
0 Boost
Sounds like someone that is not too knowledgeable about the auto industry in the least. Like you said the trend is for local production for everyone due to currency, tarrifs, shipping and so on. GM may or may not be worse at this than other comparable manufacturers but the guy never bothered to research that and compare GM to Ford for example.

As for Boeing I clearly remember numerous articles about the 787 being designed in Italy, US and I think Japan and Boeing touted how they would be able to design it 24 hours a day. This sure sounds like outsourcing to me. As for assembly it makes sense that Boeing is able to assemble mostly in the US because shipping is not a problem (the final product delivers itself) and the low volume of units and the fact that Boeing only has 1 true competitor.

Using the author's BS worker ratio in reality Boeing would do much if you count the true number of people working for them. For example the new 787:

"Boeing assigned its global subcontractors to do more assembly themselves and deliver completed subassemblies to Boeing for final assembly."

"Instead of building the complete aircraft from the ground up in the traditional manner, final assembly would employ just 800 to 1,200 people to join completed subassemblies and to integrate systems"

In reality it looks like most of the plane is make in Japan, Italy, France, South Korea, Sweden, India. The guy cherry picked a competitor in different industries.


SteveSteve - 8/13/2012 5:18:55 PM
+8 Boost
If GM is the model for all American car companies, the Gold help America! :-(

Bankruptcy, receiving billions in handout life-support, shirking the responsibility of covering old warranty claims ("old" GM vs "new" GM), union workers smoking dope and drinking booze on breaks, union leaders clocked in and getting paid while they're at the booze store...not to mention designing and creating mundane products. God help us if this is the "model" for all American car companies.


reaganeatbrainsreaganeatbrains - 8/13/2012 10:27:33 PM
-4 Boost
sorry ladies, but Obama is by far the best chance we have at bringing the economy back. screwing the little guy just doesn't make things better.


MBCLS07MBCLS07 - 8/13/2012 10:49:37 PM
+6 Boost
@reaganeatbrains, there's absolutely zero evidence to support your statement. There are however, nearly four years of recent history to suggest that Obama's trillion dollar annual deficits, discredited keynesian economic theories, crony capitalism, Solyndra-style "investments", union bailouts, gov't takeover of healthcare and hyper unemployment will only further devastate the American economy. Screwing the productive people in this country just doesn't make things better.


drell1emcdrell1emc - 8/14/2012 7:31:06 AM
-4 Boost
Reaganeatsbrains you my friend are the smart one in this comment section.

First, the author makes a claim that is misleading and the RIGHTWING NUTS
bite.
General Motors | GM.comwww.gm.com/Cached - Similar
You +1'd this publicly. Undo
You can find the latest news about GM cars and trucks, corporate giving, ... of diverse brands, selling over 9 million vehicles in over 120 countries worldwide. We're .... retail sales period, with year-to-date retail sales up 8 percent versus 2011

if GM sells more cars worldwide than in the US they need works to build them n other countries.
Nissan, honda and the rest of the car makers are starting to build cars in the country they sell them its a smart business move, you but people to work they will buy your cars.
So RIGTHWING NUTS do a little research before you speak.


wins555wins555 - 8/16/2012 2:16:17 AM
+1 Boost
GM is a symbol of American Industrial might. Can you imagine the effect if GM were allowed to go under and a Chinese Company snaps it up for pennies. GM will become CM (China Motors) and it will give the Chinese an even bigger ego. Hands down, the bailout was "necessary". As to how long GM can stay afloat in the years to come is another question.


Copyright 2026 AutoSpies.com, LLC