No need to be overreacted to GM's China-made car import plans

A recent report from Automotive News told the story of how General Motors wants to import cars from China starting in 2011, when 17,300 China-made vehicles are expected to be sold in the U.S. The number will rise to 51,500 units by the year 2014.

In the comment section beneath such a report, American readers are voicing their vexations against such a plan. "Not a chance!" "No way would I buy a Chinese made car." were the common attitude.

But I believe some of them have overreacted!

Just remember the fact that GM did not say that all of it's cars would be made in China. They just want to bring over a few of the smaller models. 17,000 vehicles is less than 0.2% of the currently depressed US car market (about 10 million vehicles). If the market recovers to 16 million vehicles that will be about 0.3% of the total volume.

Another reason is that GM wants to compete with Japanese rivals in the U.S. market. Japanese companies use non-unionized work to undercut the cost while keeping quality up that the Detroit-automaker has failed to do. Now GM would be doing the same thing by making cars cheaper in China.

By the way the upside of the plan is the part about the UAW being very uncomfortable with it. Perhaps it will finally make them make some real concessions.