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Jeep, an Obama favorite, looks to shift production to China
Washington Examiner ^ | Oct 25, 2012 | Paul Bedard

Posted on 10/25/2012 6:51:50 PM PDT by DaveTesla

In another potential blow for the president's Ohio reelection campaign, Jeep, the rugged brand President Obama once said symbolized American freedom, is considering giving up on the United States and shifting production to China.

Such a move would crash the economy in towns like Toledo, Ohio, where Jeeps are made and supplied, and rob the community of the economic security they thought Obama's auto bailout assured them.

Fiat SpA (F), majority owner of Chrysler Group LLC, plans to return Jeep output to China and may eventually make all of its models in that country, according to the head of both automakers’ operations in the region.

(Excerpt) Read more at washingtonexaminer.com ...


TOPICS: Business/Economy; News/Current Events; US: Ohio
KEYWORDS: china; chrysler; michigan; ohio
Your tax dollars at work!

This will be a disaster for Toledo Ohio and a windfall for communist government state owned Guangzhou.

1 posted on 10/25/2012 6:51:51 PM PDT by DaveTesla
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To: DaveTesla
I guess thats why the Detriot Free Press endorsed Romney because Obama can’t run a car company
2 posted on 10/25/2012 6:57:55 PM PDT by scooby321 (AMS)
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To: DaveTesla

Jeep has now been crossed off my list of vehicles I would like to own. I thought Chrysler owned the Jeep name.


3 posted on 10/25/2012 7:02:58 PM PDT by sean327 (God created all men equal, then some become Marines!)
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To: DaveTesla

I guess I will be spending lots of money in the future in the Aftermarket, and not at a dealership. I love my JKU Rubicon, and would be perfectly happy to drive it for the next 25-30 years.


4 posted on 10/25/2012 7:07:06 PM PDT by Chipper (You can't kill an Obamazombie by destroying the brain...they didn't have one to begin with.)
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To: scooby321

Wait, where did you see that the Detroit Free Press endorsed Romney? The Detroit News did this morning but I woudl be shocked if the Free Press, one of the most liberal papers in the Midwest, would endorse Romeny. I would love for you to be right but I would like to know the source.


5 posted on 10/25/2012 7:09:09 PM PDT by kempster
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To: DaveTesla

An American Original and Classic.

Shipped off to our enemies......SIGH


6 posted on 10/25/2012 7:09:33 PM PDT by KC_Lion ( Wherever I find myself standing, I forever stand with Israel.)
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To: DaveTesla
Well just damn Chrysler. I'm on my 3rd Grand Cherokee and had planned on a 4th eventually but not if it's made in China.

There is just something wrong with the descendent of the vehicle that helped win WWII being manufactured in a Communist country.

7 posted on 10/25/2012 7:16:15 PM PDT by carolinablonde
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To: DaveTesla

There is a Jeep plant in Ohio. Wake up Ohio.


8 posted on 10/25/2012 7:17:32 PM PDT by bmwcyle
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To: DaveTesla

GM building 70% of their cars in China, now Jeep going to Chine.

Two Companies that were bailed out by Obama bailing out on the United States.

That’s your Obama plan in action./


9 posted on 10/25/2012 7:20:42 PM PDT by Venturer
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To: sean327
Jeep is a division of Chrysler.

Fiat has a 61.8% stake after acquisition of the equity interests held by the U.S. Treasury.

10 posted on 10/25/2012 7:24:53 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: Red Badger

Ping


11 posted on 10/25/2012 7:25:21 PM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: DaveTesla

You could eliminate all unions, regs and taxation on manufacturing and the lure of slave labor would not be overcome. The funny thing is with autos labor is only about 10% of the cost of manufacturing. When you factor in building the new factory and increased shipping costs the amount saved is pennies on the dollar. Bastards. I say tariff the hell out of the incoming jeeps.


12 posted on 10/25/2012 7:32:51 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: DaveTesla

The Oboma sponsored bankruptcy of both Chrysler and General Motors reduced debt and gave temporary relief but did little to address the core problem of unsustainable labor cost. Short of another bankruptcy, moving to China is their only way to deal with the hold the UAW has on them. That is essentially what Romney cautioned about at the time of the first bankruptcy.


13 posted on 10/25/2012 7:37:03 PM PDT by etcb
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To: central_va

Fairly low tariffs equally applied were the preferred type of taxation by the Founding Fathers. They were right.

The War of 1812 was financed without an income tax and with interruptions in tariff revenue. A generation and a half after the Revolution America had neglected its Department of War and its marksmanship. The Washington, DC sacking by the Brits was our humiliation but we soon drilled reserves into forces that were formidable. The Battle of New Orleans showed we could defend a city.


14 posted on 10/25/2012 7:44:57 PM PDT by Monterrosa-24 (...even more American that a French bikini and a Russian AK-47.)
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To: central_va

It’s not about costs.

It’s about handing technology, manufacturing, and the means to create wealth in America to a communist system.

Handing over the future to the communists so
a global communist order can be built.

In the end they will fail,
and won’t even understand why.


15 posted on 10/25/2012 7:46:07 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: DaveTesla
I think people are reading this wrong.

The original Bloomberg article talks about localizing production in China and specifically states "Manley referred to adding Jeep production sites rather than shifting output from North America to China."

So they're NOT going to shut down Jeep production here in the US, but rather open up additional production lines (possibly lines for all their models) in China - iow localizing production (producing the vehicles where they plan to sell them.) Jeeps for the US (and probably North American and European) markets will still be made here in the US.

This is nothing new - Jeep transferred production of the 1984-style Cherokee to China after it was replaced here in the US by the Liberty. And other Jeep products have been license-produced overseas (I think there used to be a plant in the Philippines) over the decades. Other manufacturers are doing the same with various lines.

Considering that the cost of producing products here in the US is captive to the UAW, I can't really fault Fiat/Chrysler/Jeep for moving in this direction.
16 posted on 10/25/2012 7:46:37 PM PDT by tanknetter
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To: Monterrosa-24
What good are tariffs if WE are handing the whole industry over to the communists on a silver platter?
17 posted on 10/25/2012 7:48:52 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: DaveTesla

“What good are tariffs if WE are handing the whole industry over to the communists on a silver platter?”

Because tariffs take the silver off the platter.


18 posted on 10/25/2012 7:55:18 PM PDT by Monterrosa-24 (...even more American that a French bikini and a Russian AK-47.)
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To: Monterrosa-24
“Because tariffs take the silver off the platter.”

Don't hold your breath...
The folks that are supposed to impose the tariffs are
behind the transfer.

19 posted on 10/25/2012 8:00:31 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: DaveTesla

Fiat has lost their mind if they think they are going to make Jeeps in China and ship them over here. They will be broke in a month after the first shipment with warranty claims. I work for a major parts supplier and the Big 3 want 100% perfect parts with 1-3 micron tolerances on a stamped part. We are barely able to make that in the US, no way our China plant is going to do that or have the capacity to handle the volume of that.


20 posted on 10/25/2012 8:48:37 PM PDT by ClayinVA ("Those who don't remember history are doomed to repeat it")
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To: DaveTesla
Photobucket
21 posted on 10/25/2012 8:50:41 PM PDT by baddog 219
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To: Venturer

almost all of that is for Chinese and Asian market consumption, they are not shipping any of those over there. The US plants are running wide open right now.


22 posted on 10/25/2012 8:50:49 PM PDT by ClayinVA ("Those who don't remember history are doomed to repeat it")
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To: etcb

if the UAW owns GM, why are they allowinag the move to chiner?


23 posted on 10/25/2012 9:01:49 PM PDT by stickywillie (stanley ann went black, & never came back)
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To: ClayinVA

Best to do some more investigating.

http://www.youtube.com/watch?v=Lvl5Gan69Wo&feature

http://www.freerepublic.com/focus/f-bloggers/2949077/posts

American taxpayers should prepare themselves for another slap in the face, courtesy of the much-ballyhooed Obama auto bailouts. After spending about $85 billion to bail out Chrysler, General Motors and Ally Financial (formerly known as GMAC), taxpayers are being rewarded by Chrysler’s parent company, Fiat, announcing that it is preparing to build its Jeep brand vehicles in China. In addition, according to a Bloomberg report, Fiat may end up building all of its vehicles in China , threatening the loss of more manufacturing jobs should the decision be carried out to move Chrysler manufacturing out of America.

Italian automaker, Fiat, was gifted an ownership interest in Chrysler during the Obama-orchestrated bankruptcy process. Fiat paid nothing for the ownership stake, other than agreeing to transfer some of its technology. The Italian company later purchased an additional stake, giving it majority ownership and officially making Chrysler a foreign-owned company. It now seems that American jobs will be lost as a result as Fiat appears to be trying to maximize profits by transferring Chrysler’s manufacturing operations to China.


24 posted on 10/25/2012 9:36:30 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: tanknetter

Save your breath. I’ve discovered long since that Cnservatives can’t read with any better understanding than Libs, if a hot-button is involved.

I’ve read that the Chinese tariff on US made Jeeps is in the range of $50,000; of course they can’t build them here & ship them to China; they have to build Chinese market Jeeps in China; and U.S. market Jeeps in the U.S.

I would also bet that Chinese built Jeeps won’t be safety-equipped anything like the way ours are, and will use low grade, “good-good Chinese steel” instead of high durability parts. If they are built anything like the “good-good Chinese” farm equipment (”some assembly required!”) I’ve read about on tractor forums, they’ll make Yugos look reliable.


25 posted on 10/25/2012 10:55:46 PM PDT by ApplegateRanch (Love me, love my guns!©)
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To: Venturer
I understand that we Americans are going to be spending about 10 billion dollars next weekend on Halloween, and do so every year. I can’t believe we spend so little on presidential campaigns every four years.

Maybe it's the only way they can get out from under the unions that Zero insisted be bolstered above all else....

26 posted on 10/26/2012 2:49:15 AM PDT by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: DaveTesla

Who would buy a chinese Jeep? raise your hand.


27 posted on 10/26/2012 3:21:55 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks DaveTesla.


28 posted on 10/26/2012 4:02:29 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: tanknetter

Not YET.

Listen, I have heard this song and dance before. Production will leave the US once the plants in China get up to speed.


29 posted on 10/26/2012 5:12:09 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum

Yes, that may happen for some US name plate cars ( already has, for some time. I had a friend in college (not an exceptionally bright one) in college who paid a premium markup on a Geo Tracker over an identical Suzuki Sidekick because his “buy American” philosophy.

Jeep is near and dear to my heart. I have a 1996 Cherokee that don’t ever plan to get rid of. I’ll either be buried in it or pass it along to one of my kids. I’m also saving up to buy a restored WWII Jeep ( would prefer a Willys but will probably settle for a Ford).

No CEO of Jeep ( or it’s parent companies ) is going to be dumb enough to actually shut down production here in favor of moving off shore. Ever hear of “New Coke”? THAT fiasco still reverberates ( and will continue to do so long after you, me and everyone else on FR is dead and gone) as a case study in not doing stupid things with iconic American brands.


30 posted on 10/26/2012 6:07:11 AM PDT by tanknetter
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To: sean327

-—— I thought Chrysler owned the Jeep name.-——

Chrysler does own the Jeep name. But...... as part of the grand bargain, Fiat owns Chrysler


31 posted on 10/26/2012 6:18:45 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: hattend

I would, actually. As would a lot of Cherokee/XJ owners.

Cash4Clunkers decimated, unnecessarily, the Cherokee/XJ population. The Cherokee was discontinued prematurely and in favor of an inferior replacement (the Liberty). Cherokee/XJ afficionados (Americans living in the PRC) who have experience with the ChiCom manufactured ones only have issues with the engines, which is a pretty easy fix - just yank and replace with an alternative (like the 4.0 litre straight six that was the types mainstay engine from 87 through the end of production.

I’m not sayng I’d use it as a daily or distance driver ( I don’t use the one I have for that anyway). But as a solid hackaroundand trail vehicle i’d have no problem with owning and operating one.


32 posted on 10/26/2012 6:26:21 AM PDT by tanknetter
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To: Army Air Corps
Such a move would crash the economy in towns like Toledo, Ohio, where Jeeps are made and supplied, and rob the community of the economic security they thought Obama's auto bailout assured them.

How can anyone in Ohio vote for this fraud? He hates this country and everything it stands for. He despises business and feigns love for the 'little guy'. If Ohio goes for this puerile BS artist again they deserve what they get....................

33 posted on 10/26/2012 6:44:12 AM PDT by Red Badger (Why yes, that was crude and uncalled for......That's why I said it..............)
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To: hattend
“Who would buy a chinese Jeep? raise your hand.”

Same people that would buy an Ipod made by Chinese slaves.

34 posted on 10/26/2012 9:23:53 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: redgolum

Your right.

Go out and try your best to purchase something NOT made in china.


35 posted on 10/26/2012 9:29:54 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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To: SunkenCiv

Your welcome.


36 posted on 10/26/2012 9:30:59 PM PDT by DaveTesla (You can fool some of the people some of the time......)
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