Chrysler Moving Michigan Plant to Russia

Another auto plant is closing in Michigan. This time it's a Chrysler assembly line moving to, of all places, Russia. A Russian automaker says it's buying the Sterling Heights assembly line from Daimler Chrysler. That line builds the Chrysler Sebring and Dodge Stratus. The company will now produce the cars in Russia under license from the German-American automaker.

"WRONG! GDP per capita is the Purchasing Power Parity per Capita, and not what is produced per capita."

But GDP is the real sum of what a nation produces. GDP per capita is that GDP sum divided by the number of people in your country. No adjustment. Just how many widgets per worker were made.

I don't understand your anger I know you from nowhere...

If you feel so strong on a subject than why don't have a heart of teacher and instead of a tyrant?

Realizing that the company would go out of business if it did not receive a significant amount of money to turn the company around, however, Iacocca approached the United States Congress in 1979 and asked for a loan guarantee.

While it is sometimes said that Congress lent Chrysler the money, it, in fact, only guaranteed the loans.

Most thought this was an unprecedented move, but Iacocca pointed to the government bail-outs of the airline and railroad industries, arguing that more jobs were at stake in Chrysler's possible demise.

In the end, though the decision was controversial, Iacocca received the loan guarantee from the government.

Bottom line had not Chrysler been able to pull it off it would have been the tax payers to bail them out!

The only thing the big 3 car makers have been good at for the last several years is finding the toleration point of American consummers and riding it as far as they can. They have chose not to exel at anything to do with mileage, handling, quality of ride and the durability of the body and engine.
Back in the 70's when they were caught with thier pants down by the Japanese who were making small cars with great milage, they were wealthy enough to survive and had a great chance to change thier ways. They even came out with small cars to compete like the Cricket, the Vega and the Pinto. With each failure, they would make a few changes and come out with another line such as the K-car, the X body and the Zepher and Fairmont. For the last few years, they were convinced that the American public was no longer interested in anything but power and speed and invested the farm on the return of the Hemi, the Mustang and Camero as well as full sized trucks with more standard horsepower than the competitor has. What a great time for gas prices to triple. None of the big 3 have anything that gets 35 mpg, and if it gets over 25 mpg, it's junk. Back in the 70's they could blame it on the unions and did have to design cars the the union personel could build. By now they should have over come that obstacle. I don't expect any of them to be in business much longer without another bailout.

Well, that would depend on where you live. Stockholders are from all over the world. Controlling interests are mostly foreign, but American interest are 42+%. Given the proportion of foreign to American, ironically, American interests are by far the stronger. Foreigners from all over the world who have interest in the company are fickle at best (barring German stockholders). Their shares can float back and forth from American to foreign interests more so than American shares.

Furthermore, as a "merged" company, most of the workers are American and more of the combined income from the merger deal is invested in US plants.

The bad news is that ultimately, Dieter Zietche wants to streamline the company to core assembly operations and sell off the components operations-which will more than likely be sold to American companies. That can be good or bad depending on who Chrysler buys from once the streamlining is complete. More than likely, if they buy from the companies to which they sold their components parts, those companies will have to boost quality and reduce costs to keep Chrysler from seeking foreign interests.

The real problem I see in all this is that the competition in the auto industry is grossly underreported. If Americans could see how fierce the competition is, perhaps they would give sway to buy more American cars. Conservative business types are always saying to buy local to keep your local economy strong. However, they would do good to follow their own advice.

Think about this: Do you know why there are so many foreign competitors in this country? Because WE invited them here. Why? Supply and demand! And do you know why American auto companies are suffering? Because WE do not buy their cars. Why? Again, because of supply and demand!

While the quality gap is closing between foreign and local auto manufacturing, it would behoove Americans-if they are REALLY concerned about American jobs going overseas-to put their money where their mouth is and simply BUY AMERICAN!

Chrysler has been on the cutting edge of extinction, more times than I can count, during my seven plus decades of life upon this planet and were always rescued from their own stupidity by the American tax-payers.

I have no doubt, Sir, that you have lived on this planet for 7 decades and I have no doubt you have developed much wisdom in those years. But, unfortunately, your post here precludes any real understanding of the automobile industry. It would appear you are a victim of gross underreporting and mainstream media fabrication and sensationalization.

Keep digging though. The truth is out there!

Arrowhead>>>---victims of sensationalization--->

I think you should take your complaints to the UAW. They are the ones that destroy the auto industry in the US.

I am not a union man, but your comment, and many other similar comments about unions, are ignorant at best. There is a need to balance power on large corporations so that Americans can earn enough to keep up with the perpetrated inflation and taxes upon it's people. You identify union corruption with their top leaders without any regard for their rank n file. Perhaps you would do justice by the American people if you were to focus some of that ill-gotten energy toward the corruption of corporate and governmental greed. But we sure do not want to lump the small business man into that, now do we?

Arrowhead>>>----ignorance-->

Well,

My prognosis of all the Big 3 is not as bleak as yours.

It was obvious long before the cash crunch that the big 3 were putting all their eggs in one basket with the SUV/LIGHT TRUCK segment.

However, Styling has returned to the American Car... at least some of them. Crysler some GM products and Ford products are cutting edge in terms of styling... while Toyota and Honda are 10 years out of date and forgetable.

GM has managed itself into a mess.. screwing suppliers, tired products, etc etc etc... They have been the big dog so long they don't know how to change... their entire company is culturally obsolete. They expect their suppliers to deliver J.I.T. but then won't pay them for 90 to 180 days for the parts.... They force their dealerships to pay more for parts then they do the secondary market for the exact same parts... etc etc etc etc...

My entire family the only total lemons we have ever owned have been GM's one a late 80s and one a mid/late 90s...

Ford on the other hand, while losing money in North America IS a PROFITABLE company, even with the North American losses... so they aren't going anywhere other than up.. They will get their North American Operations fixed.

Crysler with the merger and all I have no idea what their footing is, but I don't see the brand disappearing anytime soon.

GM though needs to get rid of several brands... Olds wasn't enough.. they have too many rebadge BS... there is no reason for an automotive manufacturer to have more than 4 or 5 brands... low end entry level brand... middle of the road brand, hi performance brand, luxury brand, and professional vehicle/truck brand.

Pontiac is crap, while I like the new Solstice or whatever its called, the brand is a joke... take anything we make under another name and just give it a nostril grill and throw flairs on it and sell it as a pontiac.... Either make the brand a true performance brand... or kill it.

BUICK... what is Buick? A semi-luxury brand?... Why? Roll it into your luxury line with a lower price point, or into your middle of the road brand as a step up..

Trucks.. GMC, CHEVY... What the hell? They are the same damned vehicle... while have them competing with each other.. pick one and stick with it. A FORD truck is a FOD truck.. whether I'm going to use it as a construction worker, or just as my toy hauler.

GM needs a system wide enema if it wants to survive.

While Unions bring with them problems... GM management is the primary culprit... that and the GM Stockholder... The "what have you done for me lately" attitude of wall street destroys more american corporations than unions ever have.

Companies are constantly under pressure to me "street expectations" like the street knows crap about running a business long term.. all they want are results this quarter... sometimes you have to give up results short term for real long term benefit.. but if a company does this, they are SLAMMED on the street... stock holders revolt and the board gets replaced.

If you are worrying about this quarters numbers instead of where the company will be in 5 years... you will lead the company into the ground every single time.

"I am not a union man, but your comment, and many other similar comments about unions, are ignorant at best."

I don't think so. You should have just now been listening to Rush.
Also, I have horror stories about unions from years ago.
They tried to unionize my business.
I also knew people that had to go into auto factories to service plastic molding machines.
Because of stupid union rules, it could take them 2 days of dealing with a dozen shop stewards, to do a 30 minute fix.

It's a long story....

Buying American cars = paying union dues and padding the salaries of the exeuctives. Japanese cars like Toyota and Honda might cost more per model size, but the quality and workmanship put into each car is not only worth the extra money, but will still be there after your loan is paid off.
I quit buying American cars back in 1978. Drove BMW's for 15 years and have recently become convinced that Toyotas are the best car for the money that can be purchased. The Tundra is the best full sized pickup truck that has ever been made, the Sienna van is way out ahead of any Chysler, and the Corolla is the most dependable and gas efficeint car out there. All three models I own, and are rock solid to drive. I don't miss the BMW's at all, even though they were great cars.

It is my opinion that GM should be trying to hire management from Toyota.

Only if their management are being stifled by corporate. My experience has shown that the impatience of aggressive stockholders is what fuels the destruction of long-term planning. In other words, greed. Toyota is notorius for long-term planning, out-pacing their rivals by a decade or two. However, the company is showing signs of complacency and that usually means that the DOERS of the company are being squashed in the implementation of their plans.

Now that may be good for us, but, it should say something of how any good idea can be thwarted by too much wanting for the almighty dollar. Aggressive investors expect aggressive returns. But, long-term objectives can often clash with them. This may be Toyota's downfall.

Wall-Street wheels are simultaneously spinning faster with a demand for higher quality from the market. In terms of dollars, that war is very real between investor and market. And as we have seen from Enron, Wall-Street wins most of the time.

If we really want to see innovation and quality increased beyond our wildest dreams, can Wall-Street and let the American mind do what it does best: Create from it's own sources!

Now, for all you investors out there who disagree, there are economic models beyond laissez-faire and Keynesian types. And the only reason we do not move beyond it is because of greed and fear. Greed of those making millions at taxpayer expense and fear of losing what resources you already have. My goodness, these are the marking characterisitics of a madman.

Can Wall-Street, I say, and let's move on...

Arrowhead>>>---greed-->

Well that's great and all, but that doesn't mean all of the big 3 are going out of business anytime soon. Since you haven't bought a Big 3 Vehicle in nearly 20 years there is little chance you are going to change your mind.

However I'll take my Full Size Ford Conversion van over your Sienna any day of the week. Nothing against Toyota, but bang for the buck, there is no comparison.

I've owned a Corolla, they are nice reliable, if boring cars.... Toyota has one thing... reliability... but watch a stream of cars driving down a highway, and look for the most boring among the them.. nearly every time its got a Toyota badge. That doesn't mean Toyotas are bad vehicles... just that they aren't perfect.

I haven't bought a new vehicle in my life, and probably never will... taking that depreciation hit to me is just stupid. Buy my cars that are 4 years old or so, pay cash for them and drive them into the ground... I am not worrying about resale value, because there is no such thing as a good investment in an automobile in such terms, whether it be a Mercedes, BMW, Toyota or Chevy...

No, PPP is an adjustment formula. It's what the CIA Factbook uses to give civilians a concept of how far the Chinese Yuan goes in China for a Chinese factory worker's salary, versus what an American can buy in the U.S. on a U.S. salary. Goods in China have different prices than goods in the U.S., after all, so a smaller paycheck goes further in China than in the U.S.
But GDP is the real sum of what a nation produces. GDP per capita is that GDP sum divided by the number of people in your country. No adjustment. Just how many widgets per worker were made.

DEAD WRONG! On each of the CIA World Fact Book page for each country it clearly defines GDP as Purchasing Power Parity. Now, it doesn't take a rocket scientist to see that GDP per capita is not what is produced per person, but what their wages will purchase compared to those in other countries.

"You may want to get your facts straight before" you proceed to lecture the rest of us on the wonders of the crap Chrysler puts on the road.

Your post here is a classic case of yellow journalism. You quote me out of context to only sooth your preconceived idea of what poopy really smells like.

Well, I have considered the source and only hope that others here will see your folly made manifest.

Arrowhead>>>---stupidity-->

Oh, and one more thing, the fact that you made a decision to NEVER buy another Chrysler based upon the comment of only one stupid idiot who works for the company has shown me how thin in the skin you must be. But, if the truth be known, I think it never happened.

Unlike you, pal, I don't need to lie or manufacture stories to make my point. And I didn't base my decision just on the response of one of Chrysler's fine customer service reps, I also took into account what crappy cars they make. But, I will concede one point, the exteriors have styling that the other car makers wish they had. Other than that, once you get beneath the glossy finish, they're still crap.

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