Chyrsler To Build Overseas and Toyota Builds In America - DCX Not American, Toyota Is

Chyrsler To Build Overseas and Toyota Builds In America - DCX Not American,
Toyota Is

Chrysler looks at building cars abroad
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060505/AUTO01/605050386/1148

DaimlerChrysler AG's Chrysler Group is in talks with other automakers about
contracting out production of a subcompact car which Chrysler would sell
domestically as well as overseas.
...

 

Ouch!!

The re-badged Mitsus were bad enough. Now we're going to have Chinese
cars?!?!?

--= DJ =--

 

That would look hilarious - a cargo ship loaded with Avalons headed to
Japan passing a cargo ship loaded with Dodges headed to the US ; )=)

 

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060505/AUTO01/605050386/1148

"Chrysler wants to add a subcompact to its U.S. lineup -- a car
smaller than the Dodge Caliber -- but can't produce one at a
low enough cost to generate a profit."

I would have thought that the article would have touched on why the
car in question could (or couldn't) be built in Canada - instead of a
developing country (the huge appreciation of the value of the CDN
dollar is presumably altering quite a few manufacturing plans).

What's really strange is that Mexico isin't mentioned as a possible
manufacturing location for this car.

Why has the buzz grown so loud over auto manufacturing in China?

What - is Mexico all tapped out? Or are there some intrinsic problems
(that aren't widely reported) about making cars in Mexico... ?

 

People still do not have a clue about Chinese manufacturing.

Keep this in mind. Up until a few years ago China had nothing
for manufacturing capability. So just about all the machine shops
and stuff over there that is churning out products today is running
off assembly and CNC machines that are literally state-of-the-art
since they were bought within the last few years.

It is not like the US where an established production company has
millions tied up in 10 year old tooling and production machines that
they need to squeeze the last bit of work out of in order to justify
the initial purchase expense to the investors.

This is why, for example, that very advanced technology like
personal satellite phones are common in places like China. Since
they had no prior infrastructure, they wern't concerned with making
everything backwards-compatible. They jumped from stone knives
and bearskins directly to the Utopia Plenecia starship shipyards in
the space of a few years, without all that tedious mucking about
with intermediate technology that we did in the US.

Ted

 

Still doesn't explain why DCX would build a new car plant in China vs
Mexico.

The Mexican's are screaming about the jobs and economic activity they
were promised in NAFTA.

I do realize that NAFTA doesn't garantee Mexico anything.

But when considering manufacturing stuff for the US/Canadian market,
why is the playing field slanted towards China so much, and away from
Mexico?

How many corporate engineers and executives want to travel to (and
possible live in) china vs mexico as part of setting up and overseeing
new plant infrastructure?

Or does it come down to money - that the gov't of China is willing to
loan money to DCX to build a plant, but the Mexican gov't is not?

 

They aren't! they (DC) as well as most manufactures have plants run in
conjunction with other automotive plant (companies) setup by the Chinese
Government. "Baijing Jeep is on that DC has had since the early 90's. BMW
manufacturers cars there, Mercedes, Chevy, Etc etc.

Because it is even cheaper then Mexico for labor. And China is a large
country with raw materials available in China.

They already do. And they are not making a new plant. They already have new
plants there!

 

You got a point there. US wages are cheaper than Japan's, but Canada and
Mexico (where Chrysler builds many cars now) are Cheaper than US. So I guess
low cost wages depends on your perspective.

 

I don't know, but I will say this. The North American auto industry has been
brought to its knees by competitors (almost in every case) from countries
with higher wages than in the U.S. Just imagine what they'd do if they
were actually competing with products made with low labor costs! Almost
ever other industry has had to compete with China directly for years. The
auto industry is special. They have no clue what that's like. When the
Chinese come after you, things change in a hurry. They don't always win,
but they can really cheapen things a lot.

 

Mazda is short on capacity and is looking at Ford's Oakville Ont.
plant for CX-7 and CX-9 production. Toyota is building a new plant in
Woodstock Ont.

Do Jap car makers own/operate or partner with any plants in China?

Will the increasing cost of shipping fully-assembled cars from asia
become a factor in where cars will be made for the north-american
market?

 

The only country I know of with higher wagers than the USA is Japan, and
I'm not sure they are higher when you factor in total labor costs,
benefits as well as wages. Since you said countries (plural) above,
back it up with some facts.


Matt

 

Mexico is losing much manufacturing to SE Asia.
When in Mexico a few years ago there was much talk there on how they
were losing to SE Asia because they didn't have any control over many of
the foreign plants there.

Lower costs = more profit.

Also the Chinese Gov. will probably invest in and control the auto
plants in China.

 

Germany. Tops the lot AFAIK. Big political issue there.

And newer car factories is in the Czech republic and China and...

DAS

For direct contact replace nospam with schmetterling
---

[...]

[...]

 

Actually some of the European countries have the highest labor costs. I
believe Germany is the highest.

 

I don't care how many cars Toyota assembles over here, they are NOT an
American car company.

 

Thats OK, neither do the Chinese.

China *will* be a mass producer of goods, no doubt. But until all the
Chinese manufacturers start playing by the rules (following design
specifications, performing acceptance tests, performing required safety
tests, etc.) then quality will continue to be hit-and-(mostly)miss.

Which is why they are doing such a TERRIBLE job of QA and QC. Right now,
"Made in China" means exactly what "Made in Japan" did in the 50s-
cheap, mostly complete crap, but a few things that are *really* good.

 

Nor is Chrysler anymore!

 

China has come a long way.
Now many Chinese goods are equal to those produced here.
If only one could find goods produced here.

 

Not fully. Not even quite a majority (stockholder-wise). On the other
hand, most of the design and engineering for the Chrysler, Dodge, Jeep,
and Dodge Truck brands *does* still take place in Auburn Hills. The only
real exceptions are the Crossfire (a re-bodied Benz) and bits of the LX
platform cars (the transmission is a revised Benz design, and the
suspension borrows from the E-class but isn't quite a copy.) Any way
you slice it, though, Chrysler is many times more "American" than Toyota.

 

Not fully. Not even quite a majority (stockholder-wise). On the other
hand, most of the design and engineering for the Chrysler, Dodge, Jeep,
and Dodge Truck brands *does* still take place in Auburn Hills. The only
real exceptions are the Crossfire (a re-bodied Benz) and bits of the LX
platform cars (the transmission is a revised Benz design, and the
suspension borrows from the E-class but isn't quite a copy.) Any way
you slice it, though, Chrysler is many times more "American" than Toyota.[/QUOTE]
I'm referring to the guys making the top decisions;
they aren't American anymore.
Yes the worker bees under them are mostly American.