Jeep, an Obama favorite, looks to shift production to China

the examiner ^ | 10/25/2012 | Paul Bedard

[tobyhill]

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.

Obama is such a fan of Jeep that he included a picture of himself speaking at the Toledo plant in his newly released second term agenda binder. In his address to the plant in 2011, Obama said, "I just took a short tour of the plant and watched some of you putting the finishing touches on the Wrangler. Now, as somebody reminded, I need to call it the 'iconic' Wrangler. And that's appropriate because when you think about what Wrangler has always symbolized. It symbolized freedom, adventure, hitting the open road, never looking back."

Well it appears that the taxpayer bailed-out Chrysler is looking back and now considering cutting costs by shifting production of all Jeeps to China, which has a strong desire for Jeeps.

[Perdogg]

This is interesting

http://weeklystandard.com/blogs/clinton-obamas-feeling-hurt-over-jeep-ad_658105.html

[goldstategop]

So much for a legendary American automotive icon.

That must hurt Barack a lot. OWWWWWW!

[tobyhill]

“The series of statements in the ad individually may be technically correct, but the overall message of the ad is clearly misleading”

Here's The Washington Compost explanation of claim.

[DJ Frisat]

"Obama is such a fan of Jeep that he included a picture of himself speaking at the Toledo plant in his newly released second term agenda binder."

Binder? I thought Romney was the one with a binder problem! Dog whistle alert! Bwa-hahahahahahahahaha....

[tanknetter]

This has been covered on at least three other threads. The article in the Examiner being cited is second-hand from a Bloomberg article and is extremely misleading.

Jeep is not talking about shifting production to China, but localizing Chinese market production in China.

Original source article can be found here

Two quotes from the original article (emphasis mine):

“We’re reviewing the opportunities within existing capacity” as well as “should we be localizing the entire Jeep portfolio or some of the Jeep portfolio.”

"Manley referred to adding Jeep production sites rather than shifting output from North America to China."

[O6ret]

Just more evidence that the much vaunted Obama bail-out lined the pockets of the unions but did little to address the long-standing structural and financial issues impacting the industry...largely caused by the unions.

[tobyhill]

“The series of statements in the ad individually may be technically correct”

Washington Post.

[tanknetter]

“The series of statements in the ad individually may be technically correct”

The ad isn't the subject of the thread, the Examiner article is.

The Examiner article states that Jeep is planning to shift production. The original source article says that Jeep is looking to localize production and specifically cites the President of Jeep as saying that they're not planning on shifting production.

So the Examiner article is wrong. And, seemingly, based on an ignorance of what "localization" really means.

[PLK]

tanknetter - I hope Romney has stopped using this in his campaign speeches. The original article was VERY misleading and it was only the final paragraph that was clarifying. The leftists online were working their panties into a wad over Romney’s “lie” starting early yesterday morning.

[tobyhill]

You can argue that you believe the article is wrong but just because Obama and Chrysler are backtracking doesn't mean it is.

You can't honestly believe that Jeep is going to be built in China just for “locals” and won't export them?

The ad is based on this report and that's the connection.

[Adder]

Ok...so now Fiat wants to move Jeep production to Italy...

http://nlpc.org/cached/fiat-says-chrysler-jeep-production-may-move-italy.html?q=stories/2012/10/29/fiat-says-chrysler-jeep-production-may-move-italy

And NOT localized...

[tanknetter]

tanknetter - I hope Romney has stopped using this in his campaign speeches. The original article was VERY misleading and it was only the final paragraph that was clarifying. The leftists online were working their panties into a wad over Romney’s “lie” starting early yesterday morning.

I agree - the writer of the Examiner article is either incompetent (doesn't understand "localization" and overlooks the "not shifting production" part) or a liar (deliberately ignores both to stir up emotions).

There is the question about why Jeeps for China can't be built here and shipped to China rather than going the localization route. The answer is pretty complex, having to do with a combination of tarriffs, competitive wages, the ability to quickly expand production capability and a host of other factors.

In the end tho, making that case would be both ignoring history (Jeeps have been built overseas, including in China, before) and undermining companies like Toyota and BMW that have localized some production here in the US (Sienna Minivans are being made in Georgetown, KY and 300 series Beemers - maybe others - are being built in South Carolina) ... and in RED, union-unfriendly states too boot!

[tanknetter]

You can argue that you believe the article is wrong but just because Obama and Chrysler are backtracking doesn't mean it is.

There's no "backtracking". The original Bloomberg article cites the Jeep President as saying production isn't being shifted. That's not backtracking.

[tanknetter]

And NOT localized...

Now that's an interesting article. And very different fromt he Examiner one. Original source citation that Jeep/Chrysler is thinking about building Jeeps in Italy for export to the US. Which is a different proposition, entirely, and a relevant one, than what's in the Examiner article.

Thank you, I appreciate your posting it.

[tobyhill]

Good! Then Jeeps are being made in China and I don't believe it's just for “locals”, I believe it's being built there for exports.

[Condor51]

Moving Jeep production to China, if true, is one thing. But another article says Jeep may move Jeep production to its Fiat Plant in Italy, and that, is quite another.

A Chinese made/assembled Jeep I may buy. But a Jeep made/assembled by FIAT!, no fricken way. At least in China you know that the workers will actually 'work'. But the lazy socialists in Italy, they avoid 'work' like its soap and water.

There are a couple Italian made cars I would buy ('F', 'L' and 'M'), but not until I win the Mega-Lotto. As even though they're top class cars you still need a mechanic on your staff.

Back in 1977 I (we) almost did buy a Lambo, like this one 'luckily' the dealer was closed.

[Adder]

Your welcome...

Not sure where the Examiner got the China angle but...

It seems Fiat will do something to Chrysler production in some manner. It would certainly help the ailing Italian economy...at our expense of course.

Maybe that was the plan all along...maybe I watch 2016 too intently. :]

[Zhang Fei]

You can't honestly believe that Jeep is going to be built in China just for “locals” and won't export them?

Both GM and Ford have plants in China with local joint venture partners. They manufacture for the local market. The reason you won't see those cars here any time soon is because the Chinese car market is generally lower-end than what we have here. Engines are smaller and crash test specs are not as good, because of fuel efficiency requirements there - not government requirements, but the fact that Chinese wages are way lower, which means gas mileage needs to be really good. Some of these Chinese car buyers are earning $4K a year. While those wages fall below the Chinese income tax threshold, they can't afford to drive gas guzzlers.

[tanknetter]

It seems Fiat will do something to Chrysler production in some manner. It would certainly help the ailing Italian economy...at our expense of course.

For Jeep, the angle of building them over in Europe for export back to the US would be an idiotic move. Someone really needs to explain (s-l-o-w-l-y, using big, monosyllabic words) to the Fiat CEO the whole "New Coke" thing and the risks inherent in mucking around with iconic US brands.

Now a quick disclaimer: I'm ticked at Jeep and have been for years. Between replacing the Cherokee with the Liberty, the Compass/Patriot 'lightweight' lines and then redesigning the Wranger from a perfectly good Jeep (the TJ) into a mini-Hummer they've really lost me as a future customer. And I say this as someone who owns a 96 Cherokee (XJ), and who's family history (parents' cars over the years) includes an 84 Cherokee, 86 Cherokee, 88 Grand Wagoneer, 95 Grand Cherokee and 08 Grand Cherokee.

They might get me back if they were to bring back the TJ, or rework the Patriot into something more Cherokee/XJesque (from the original pictures I thought the Patriot was going to bring me back to Jeeps. Then I saw one in person ...). But for now I think the next vehicle I buy is going to be a Toyota FJ Cruiser.