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Wednesday, May 13, 2009

GM to start importing cars from China

By JOSH MITCHELL - Associated Press
Industrial robots assemble a car at the Shanghai General Motors factory in Shanghai, China.
General Motors Corp. plans to start importing Chinese-built vehicles into the U.S. in 2011, according to an outline the auto maker submitted to the U.S. government.
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GM currently makes vehicles in China for sale in Asia. But the Detroit company plans for the first time to ship some of them to the U.S. to save on manufacturing costs.

GM told Congress that the company plans to ship 17,335 Chinese-built vehicles to the U.S. in 2011. That figure would jump to more than 38,000 in 2012 and more than 53,000 in 2013, the document states. Imports from other countries, including South Korea, Japan and Mexico, also would increase.

The plan is part of a broader cost-cutting strategy at GM, which has said it intends to eliminate 21,000 U.S. manufacturing jobs. The plans are being devised under the guidance of President Barack Obama’s auto-industry task force as part of GM’s restructuring.

GM’s intention to import more cars is being strongly opposed by the United Auto Workers union, which argues that the company, surviving on more than $15 billion in U.S. loans, shouldn’t use taxpayer money to subsidize U.S. job losses.

A GM spokesman declined to comment Wednesday, saying that talks with the union are ongoing.

Write to Josh Mitchell at .(JavaScript must be enabled to view this email address)

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