It's déjà vu all over again! GM again caves to Chinese pressure. In September it was the electric car. In April it was the Cadillac.
The Chinese government made its latest move in December. That's when The Guardian reported that the Chinese government raised its already high 25% tariff upon American-made vehicles, concerned that increasing numbers of big-engine cars were being purchased by Chinese consumers:
Read more: Articles: Here Comes the Made-in-China Cadillac
From the story:
General Motors announced this week that it will start building the Cadillac XTS, CTS and ATX in China in an attempt to keep up with the insatiable demand for luxury consumption by that nation's nominally Marxist elite. It seems that Communist Party princelings and their crony capitalist clients just can't get enough Caddies, not to mention the BMWs, Ferraris and Lamborghinis.
While China's ever widening class divide offends human dignity, what is really scary is the way that we have been importing it into America via a trade policy that undermines the value of U.S. labor while increasing the returns to capital invested in China. As American industries flee to China's exploitive manufacturing heaven, real wages for working class Americans steadily decline. Meanwhile the profits of multinational corporations soar and the growing rift between wage earners and the smart, big money investors swallows our dwindling middle class.
more
Peter Navarro and Greg Autry: Commies in Cadillacs: GM Turns Chinese
The Chinese government made its latest move in December. That's when The Guardian reported that the Chinese government raised its already high 25% tariff upon American-made vehicles, concerned that increasing numbers of big-engine cars were being purchased by Chinese consumers:
General Motors faces the greatest impact, almost 22% extra on some sports utility vehicles (SUVs) and other cars with engine capacities above 2.5 litres. Chrysler faces a 15% penalty, while a 2% levy will be imposed on BMW, whose US plants make many of the cars it exports to China.
Existing taxes and duties already push up the cost of US imports by 25%, and the new levies make it even more expensive for Chinese consumers to buy American.
Existing taxes and duties already push up the cost of US imports by 25%, and the new levies make it even more expensive for Chinese consumers to buy American.
Read more: Articles: Here Comes the Made-in-China Cadillac
From the story:
General Motors announced this week that it will start building the Cadillac XTS, CTS and ATX in China in an attempt to keep up with the insatiable demand for luxury consumption by that nation's nominally Marxist elite. It seems that Communist Party princelings and their crony capitalist clients just can't get enough Caddies, not to mention the BMWs, Ferraris and Lamborghinis.
While China's ever widening class divide offends human dignity, what is really scary is the way that we have been importing it into America via a trade policy that undermines the value of U.S. labor while increasing the returns to capital invested in China. As American industries flee to China's exploitive manufacturing heaven, real wages for working class Americans steadily decline. Meanwhile the profits of multinational corporations soar and the growing rift between wage earners and the smart, big money investors swallows our dwindling middle class.
more
Peter Navarro and Greg Autry: Commies in Cadillacs: GM Turns Chinese
