Shocker: Obama-Run General Motors To Start Outsourcing Car Manufacturing
So, uh, why did we spend $16 billion bailing this company out again?
The U.S. government is pouring billions into General Motors in hopes of reviving the domestic economy, but when the automaker completes its restructuring plan, many of the company’s new jobs will be filled by workers overseas.
According to an outline the company has been sharing privately with Washington legislators, the number of cars that GM sells in the United States and builds in Mexico, China and South Korea will roughly double.
The proportion of GM cars sold domestically and manufactured in those low-wage countries will rise from 15 percent to 23 percent over the next five years, according to the figures contained in a 12-page presentation offered to lawmakers in response to their questions about overseas production.
As a result, the long-simmering argument over U.S. manufacturers expanding production overseas—normally arising between unions and private companies—is about to engage the Obama administration.
What this illustrates is that the problem with the domestic auto industry all along has been exorbitant labor costs. Or, put more bluntly, the problem has been the UAW. In order to become solvent going forward General Motors most find a cheaper labor pool so that it can compete with its foreign counterparts. That means getting away from the UAW in Mexico, among other places.
In summary, we could have saved ourselves billions in bailouts and kept GM’s jobs in America if the Obama administration hadn’t insisted in essentially taking the company over so that the UAW’s labor contracts wouldn’t be re-negotiated in bankruptcy. Now that the UAW has been so artfully protected by Obama, GM has to go overseas to remain profitable.
And if Obama blocks this move toward outsourcing (and he can’t be that stupid as even he knows he’s now tied to GM’s future), the company will collapse.
