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Death of Manufacturing
The American Conservative ^ | 8/23/03 | nonglobalist

Posted on 08/23/2003 7:42:02 AM PDT by cp124

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To: magellan
VW Group to source parts in China

By Alysha Webb
Automotive News / July 16, 2003

SHANGHAI, China — Volkswagen, which has complained frequently about the high cost of auto parts in China, will follow the example of Ford Motor Co. and General Motors and begin sourcing parts here for its global operations.

Peter Wolters, head of finance for FAW-VW Automotive Co., a joint venture in the north China city of Changchun, has been named head of purchasing--China for VW Group, a new position.

“At the moment, Chinese suppliers are too expensive,” Wolters said in a brief interview. “But bringing in new cars to China on a common platform will achieve economies of scale.”

China is VW’s largest market. It expects to sell more than 600,000 cars here in 2003.

The automaker will boost its production capacity in China to close to 1.5 million cars and light trucks over the next five years by building a new plant in Changchun and adding capacity at Shanghai Volkswagen.

Ford has said it will source $1 billion in parts from China this year, while GM has announced plans to source $10 billion in parts here, without naming a timeline.
Read more about...
61 posted on 08/23/2003 3:56:42 PM PDT by cp124
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To: cp124
Manufacturing is the key to national power. Not only does it pay more than service industries, the rates of productivity growth are higher and the potential of new industries arising is far greater. From radio came television, VCRs, and flat-panel screens. From adding machines came calculators and computers. From the electric typewriter came the word processors. Research and development follow manufacturing.

This salient point that Pat states so well is the very point that most Free Traitor Dunderheads completely miss or are unable to grasp. When a nation loses an important industry it also loses the future spin-off industries that the old industry spawns. For example, as our steel industry withers away due to the allowed mercantile trade practices of other nations, we are losing the technical ability, know how and infrastructure to advance metallurgy into the new metals and compounds of the future which are crucial to maintaining our technological edge and national security.

The One Way Industry Destroying Trade policies of this Administration and Government are literally robbing America of the ability to shape its technological future and the prosperity that flows from it. Implicit in the reckless trade policies of today is some naive B/S notion of dependency on other nations for our critical needs.

It leaves one to wonder just how accommodating say the Red Chinese will be when we have to go to them for our military procurements because we no longer have the industry to produce it ourselves.

62 posted on 08/23/2003 4:12:14 PM PDT by WRhine
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To: magellan
...building car manufacturing plants in America to take advantage of our superior productivity and lower costs.

Oops. You meant assembling the foreign-made parts (which represents over 79% of the value added) into cars in the USA...all to evade our trade tariffs and import quotas. There is no superior productivity and lower costs than exist in Japan.

63 posted on 08/23/2003 4:20:09 PM PDT by Paul Ross (A nation which can prefer disgrace to danger is prepared for a master, and deserves one!-A. Hamilton)
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To: chimera
When those plants went away, the numerous (non-union, family-owned) small businesses, tool makers, machine shops, jobbers for specialty parts, etc., all went under. There are those who say small business is the backbone of America

Chrysler, which is now owned by the germans(the ones we fought in ww2) has emphasized that it also wants its suppliers, parts suppliers, tool makers, etc. to be foreign, or to get its material from foreign lands. Frankly, I see nothing pro-american about Chrysler at all anymore, nor should I expect to. They were among the first to want to foreign outsource and lay off american workers after the germans took control. It is easy to see why Chrysler which is controlled by sons and daughters of nazi troops to do this, but why are other american companies so bent on replacing american workers? Is there any company left that is pro-america anymore?

64 posted on 08/23/2003 4:35:21 PM PDT by waterstraat
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To: chimera
Big plant closings get the headlines, but the ripple effect you cite often makes up the bulk of the hit side. A good example is the death of the heavy steel industry in the Pittsburgh-Cleveland-Mahoning Valley region. When those plants went away, the numerous (non-union, family-owned) small businesses, tool makers, machine shops, jobbers for specialty parts, etc., all went under. There are those who say small business is the backbone of America. But often small business is dependent for its lifeblood on big business. It is a symbiosis that is often overlooked by those who say we don't need big manufacturing anymore.
Actually the reports of steel's death in Cleveland have been greatly exaggerated due to IMG, which seems to be doing well in the old LTV East plant. It's run by engineers, not beancounters (like the Japanese steel companies) and that helps.

A big and underrated problem with industry in urban areas is CERCLA. No one wants to buy/lease an old industrial site because you might end up liable for an extensive cleanup if something is found buried....never mind that it was buried legally fifty years ago and isn't bothering anything where it is. Even if one wanted to take the chance the banks won't...they have been held liable too.

The enviro-Dims only want to make things worse. The Clinton era EPA wanted to start charging companies with civil rights violations if they were found to be "disproportionately polluting" in predominantly minority areas. A number of big city mayors gave birth to porcupines (breech presentation) when they heard that idea.

-Eric

65 posted on 08/23/2003 4:38:05 PM PDT by E Rocc ("Dry counties" are a Protestant version of "sharia")
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To: LibKill
"We may disagree on causes, but the fact is that we need industry. Smoke-belching, high-pollution, industry."

You would like Lanzhou, the Chinese city that won the dubious accolade of being named the world's most polluted place. Or Dehli, the industrial slum with no waste treatment devices or enviromental controls. Factories dispose of hazardous industrial waste in ordinary landfills
or simply dump it by the roadside.
66 posted on 08/23/2003 4:47:27 PM PDT by optik_b
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To: cp124
On the eve of World War I, the 13 agricultural colonies on the eastern seaboard had become the richest nation on earth with the highest standard of living, a republic that produced 96 percent of all it consumed while exporting 8 percent of its GNP, an industrial colossus that manufactured more than Britain, France, and Germany combined

Not true, Russia was there too. But truth, Germany & Britian & France out produce both countries. But they reach platue and not improve. Then Russia fall to Communists.

67 posted on 08/23/2003 5:21:07 PM PDT by RussianConservative (Hristos: the Light of the World)
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To: cp124
Our Congress is ordered by foreign bureaucrats to alter U.S. law or our companies face penalties. Presidential decisions to protect vital American industries are declared invalid by Eurocrats. The terms of access to the U.S. market are now to be decided in Geneva by Lilliputians of the New World Order.

Actually just as US government has right to ignore insturction so do EU have right to slam US companies working on EU soil. Sovereignty go both way.

68 posted on 08/23/2003 5:24:30 PM PDT by RussianConservative (Hristos: the Light of the World)
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To: magellan
Another Apparatchik of the Hate America First Free Traitor Division speaks up.

It seems Pat forgot about Toyota, Nissan, Honda, BMW, and Mercedes, building car manufacturing plants in America to take advantage of our superior productivity and lower costs.

Clearly you feel that your brazen lie is sufficient to rebut all of what Pat has written. You may be so easily fooled by your own rhetoric, but the rest of us know that the unions forced Congress to lay heavy tariffs on completed cars brought into the united States. That is why Toyota, Nissan, et al have built assembly plants in the united States where manufactured parts are brought in and minimal assembly is performed to produce automobiles not subject to import tariffs.

China had a 100% tariff on Japanese made cars so Japan decided to build assembly plants in China. Also the fastest growing economy the world has ever seen has had a average 35% import tariff on all products and a few years ago reduced the tariff on import cars down to a mere 70-80%. So if China can have tariffs and enjoy the fruits of profound expansion, why do you hate America so much that you wish just the opposite?

69 posted on 08/23/2003 5:43:34 PM PDT by Dr Warmoose
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To: Bon mots
If that is the Wilmington I'm thinking of, don't drive through there at night.
70 posted on 08/23/2003 5:47:44 PM PDT by janetgreen
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To: Ronly Bonly Jones
The hate America First Free Traitor Division Apparatchik speaks:I've heard of voodoo economics, but this is the first time I've ever encounterd cargo-cult autarky economics.

What amazing rebuttal! Just come up with cheap shots and insults and you don't have to do any thinking of justification for the subversion you wish to see.

The world economy is here to stay.

Another amazingly stupid comment. Is that Dot Com economy still with us or has that moved on? How about the great Asian Tiger, wern't they in deep financial trouble in the late 1990's? And South America's economies? They all change. The world economy is remarkably different each decade, and yet you just mouth off "The world economy is here to stay." Yeah sure.

If you want to live in a world where cave men sell rocks to each other, you're free to move to North Korea and live under the joyful principles of ju-chi (self-reliance) at your convenience.

Why move? You and your Hate America First cabal are fighting to bring it to our doorstep. China and India enjoy high tariffs and great growth. The united States is selling herself like a cheap two-bit whore, except we really arent selling ourselves as much as we are just giving it away, or in many cases paying other nations to have their way with us. But I am sure that you are relishing the day when America and the freedom she represents will be some tattered whore lying near death in some Chinese gutter.

71 posted on 08/23/2003 5:57:45 PM PDT by Dr Warmoose
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To: A. Pole
So where is the Soviet system now, Mr. Jones?! Where is it, huh? >>

It surrendered. To guys like me, thank you very much, serving in uniform when guys like you were whining and groaning about how we were losing to the Stalinists.

Your apology is accepted, Captain Needa.
72 posted on 08/23/2003 6:11:07 PM PDT by Ronly Bonly Jones
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Comment #73 Removed by Moderator

To: harpseal
11. Deport all illegal aliens immediately and take measures that prevent the entry of any more illegal aliens. Fine all companies knowingly employing illegal aliens Criminal sanctions should be imposed on anyone helping an illegal alien stay in the USA in violation of our laws.

No need to deport, just extend our seizure laws to cover illegal aliens as "contraband". Presently, the War on Drugs gives government all kinds of seizure powers, if taking cars, boats, estates and bank accounts of drug dealers is fair game, then apartment buildings, check cashing/banks and lawn maintenance equipment for public auction is fair for those who knowingly trade in illegal aliens and run their support services.

Nothing like huge government deficits and true free market pressure to get those ad hoc tax collectors (police officers) to commence seizure operations against those who aid and abet illegal aliens.

74 posted on 08/23/2003 6:15:09 PM PDT by Dr Warmoose
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Comment #75 Removed by Moderator

To: A. Pole
Bravo....one of the most succinct dissections of free trade that I have ever seen.
76 posted on 08/23/2003 6:20:56 PM PDT by quebecois
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To: Dr Warmoose
UGARTE: "You deespiiise me, dooohnt you, Reeek?"

RICK: "If I gave you any thought I probably would."
77 posted on 08/23/2003 6:21:35 PM PDT by Ronly Bonly Jones
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To: templar
A heavily armed and rapidly growing American underclass will remain too stupid to realize that they are an underclass.

But the ruling class has already contemplated this problem of the well-armed - by making them all dependant on government for their "safety", food, shelter, clothing, education and medicine.

To coin a phrase: "Don't shoot the hand that feeds you."

78 posted on 08/23/2003 6:33:14 PM PDT by Dr Warmoose
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To: Bon mots
The confiscatory level of property taxation first drove many companies out of cities, but there are NO or nominal property taxes in other countries

These days big companies like Boeing and Intel run competitions between cities and states that end up handing over huge benefits to them. Tax rebates, tax abatement, outright grants, bond funded development loans are just some of the goodies they get for locating a plant somewhere. Or even keeping one where it is.

The assertion that property taxes don't exist in other country's is simply untrue and depends on the country. In any event, Mexico has its own special tax: Mordida, a bribe paid up the line from the lowliest Mexican bureaucrat or street cop right to the top. Many companies have found out since moving there that this is an expense they never planned on which grows every year (think "extortion at the point of a gun").

Property taxes rightly belong ONLY on productive property. That was the original intent of the Anglo-Saxon system. By comparison, the Spaniard system only incurs taxes when a sale is made, thus providing no incentive to productively use property. The result of such a system is called "Latin America". Still think it's just property taxes?

79 posted on 08/23/2003 6:59:55 PM PDT by Regulator (And now you know why your homeowner's exemption should be a lot higher)
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To: WRhine
we are losing the technical ability, know how and infrastructure to advance metallurgy into the new metals and compounds of the future which are crucial to maintaining our technological edge and national security

Absolutely right. If you aren't in the industry, you won't know or remember the technology and you won't know how to advance it, because you won't see where the process can be improved or innovated. The knowledge base is in the companies, not the universities. If you export that knowledge base - as is being done now - it's only a matter of time.

80 posted on 08/23/2003 7:18:01 PM PDT by Regulator
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