Reposted from Forbes - Paul Roderick Gregory, Contributor
Barack Obama delivers his “The End of an Old GM, and the Beginning of a New GM” speech on June 1, 2009 in the Grand Foyer of the White House.(Photo credit: Wikipedia)
At a Colorado pep rally, President Obama praised his GM bailout as an example for American industry to follow.
“The American automobile industry has come roaring back…So now I want to say what we did with the auto industry, we can do it in manufacturing across America. Let’s make sure advanced, high-tech manufacturing jobs take root here, not in China. And that means supporting investment here. Governor Romney … invested in companies that were called ‘pioneers’ of outsourcing. I don’t want to outsource. I want to insource.” Applause!
According to Obama, GM does everything right. It offers high-paying jobs to American workers. It invests at home. GM put American manufacturing back in the high-tech race on American soil. The new GM is good for America, and America is good for GM, as a former GM chairman declared in 1953. GM is back where it should be.
We need to look no further than General Motors’ own figures to learn that GM outsources almost two thirds of its jobs overseas. Less than one in five GM vehicles are manufactured in the United States.
GM’s outsourcing is not a slip. GM clearly states that foreign investment and outsourcing of jobs are an integral parts of its growth strategy.
Grace D. Lieblein, President and CEO of GM Mexico, for example, proudly announced in a GM Mexico press release:
“75 years ago, General Motors came to our country with a dream to fulfill: turning Mexico into a prosperous nation for the benefit of millions of families. Today, after 75 years into the adventure, we have achieved goals that seemed unattainable, thanks to the efforts and dedication of Mexican talent. During the 75 years GM Mexico has been in operation, the subsidiary has produced 7 million vehicles, 20 million engines, and 4 million transmissions. GM Mexico employs 11,500 direct and about 90,000 indirect employees.”
So it now appears that GM’s goal is to make Mexico prosperous, not the good old US of A! In the same press release, GM heralds its upcoming billion dollar investments in its Mexican plants (versus a $100 million investment in Rochester, New York). It should have saved the Rochester announcement for another day.
GM is no less ambitious with respect to manufacturing in the BRIC countries of Brazil, Russia, India, and China. Again from GM’s annual report:
“We will continue to grow our business under the Baojin, Jiefang, and Wuling brands. We operate in Chinese markets through a number of joint ventures and maintaining good relations with our joint venture partners, which are affiliated with the Chinese government, is an important part of our Chinese growth strategy.”
Seems like a good match: U.S. Government Motors with China’s “national champions.” Well, Obama likes government-private partnerships. Our GM is now in cahoots with the titans of the Chinese Communist Party.