GM to buy 1 billion in auto parts from India

dukesadog

Expert Expediter
Anyone seen this article yet? GM wants to buy over 1 billion dollars worth of auto parts from India, says it currently buys 120 million worth per yr and wants to up its ante?

do you think this will effect the business?

duke.
 

Lawrence

Founder
Staff member
This should be interesting.

I will also propose this...

What is the difference between this practice and American's
driving Japanese cars?

I suggest that the effect is identical. Next time you have 3 day layover thank all the people driving a Japanese car.

Buy American. Or Canadian. Buy North American.

IMHO.

Lawrence,
Expediters Online.com


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RichM

Veteran Expediter
Charter Member
I havn't read anything about parts from India but a while back I read that over 900 engineering jobs from GM/Ford had left Michigan for India. With the way it's going a 7-11 store managers job will be a real status symbol.
 

greg334

Veteran Expediter
>I havn't read anything about parts from India but a while
>back I read that over 900 engineering jobs from GM/Ford had
>left Michigan for India. With the way it's going a 7-11
>store managers job will be a real status symbol.

900? Try again.... they followed the IT jobs that went earlier.


Come again please.
 

redytrk

Veteran Expediter
Charter Member
I wonder what an american car would look like if it rolled off the assembly line minus any foreign parts.

First of all it probably wouldnt roll.
 

Lawrence

Founder
Staff member
Redytrk,

Where do I pay my $5? LOL!:)

Lawrence,
Expediters Online.com


Sacred cows make the best burgers

"So tell me, are those cookies made with real Girl Scouts?"

Sometimes the squeaky wheel doesn't get the grease, it just gets replaced

You can't tell a book by its movie



-----------------------------------------
Thanks For Visiting EO!



http://www.expeditersonline.com/hotnews/sterling_eo_forum.jpg


Please Help Us Get The Word
Out About Expediters Online.com!

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redytrk

Veteran Expediter
Charter Member
>Redytrk,
>
>Where do I pay my $5? LOL!:)
>
>Lawrence,
>Expediters Online
>-----------------------------------------[/b]

You can send it to your charity,or mine(The Old Expediters Fund).
 

hdl

Expert Expediter
>Anyone seen this article yet? GM wants to buy over 1 billion
>dollars worth of auto parts from India, says it currently
>buys 120 million worth per yr and wants to up its ante?
>
>do you think this will effect the business?

Got an Expediter boat?:)
 

Broompilot

Veteran Expediter
Being from Michigan I could defend or critize our auto makers. I have no regrets owning a classic 69 Firebird Convertable or putting my bride in 05 Honda Accord.

When my X-Grand Prix can hold up to the quality of the Honda Ill buy another Pontiac until then I choose not to give the local dealership $500. everytime (seemed like 3 months) the car needed a repair.

I truley want to look out for the American Economy but not when it costs me thousands a year.

Paid $20K new four and half years later the Pontiac dealer offered me $3K. Talk about a resale. True value of the car was 7K and thats what I got for it on my own. Look at a four year Accord in the paper (loaded) around 11K vs 6 for a Grand Prix same sticker prices new.

This is not something I am proud to write about facts are facts the big 3 have done this to themselves.
 

ATeam

Senior Member
Retired Expediter
It might be helpful to look at the big picture. While GM may be upping it's India parts orders, foreign companies have built huge new plants in the USA and employed thousands of American workers. You know the ones I'm talking about, the gleaming new plants in several southern states. The workers there are not complaining about foreign competion. They are happy to have the work they have. We expediters also benefit from this trend, every time we pick up from or deliver to these plants. The plants are packed full of trailers that belong to U.S. line-haul companies too.

The foreign companies built plants in the U.S. in large part to reduce their transportation costs. There is nothing sinister or evil about it. It made business sense for them to build on U.S. soil, so they did. The Honda I used to drive was built in Ohio. If you buy a Freightliner or Volvo truck today, you are buying from a foreign company that maintains manufacturing facilities in the U.S.

American or foreign? It's hard to tell the difference any more.

How does it affect us as expediters? As I see it, very little. We haul car parts to Toyota in Indiana same as we haul them to GM in Michigan.
 

greg334

Veteran Expediter
Well I look at it a different way.

As much as I complain about the car companies here in Detroit, I want them to be top in the world.

The car companies that remain are trying to survive in an industry that they themselves could have controlled but were too arrogant to do so. They were warned in the 50’s when the first import craze came ashore by the very same people who taught the Japanese their manufacturing techniques.

But today we don’t have a big three; we have a sort of big two with the third a foreign owned subsidiary. Out of ten (if I counted correctly) post war companies we have only two left, sad.

In today’s Detroit paper, it had front page splashed about the ominous signs that Ford may not be part of the big two soon, which worries me a lot. Not because of my expediting career but rather the more changes that will take place of my family member’s jobs. Ford has employed someone in my family since 1920. Ford is struggling and needs people to buy their cars and trucks. (Sorry for the plug)

I do agree with ATeam there is more investment in the factories today from foreign car companies, but even though the jobs are here, the money still leaves this country. They build these plants for several reasons, as ATeam said one is transportation, but the other is marketing and a third is tax reasons. I won’t go into those, but I have to add one more, the unions, especially for Mercedes and BMW. It is far cheaper to build a Merc or BMW here than in Germany. Yes the Japanese have unions over there but there is a different culture which promotes business not makes it an adversary.

As for quality control, I think that the American car companies still have a long way to go before they can turn out a defect free or near defect free product. OK so they instituted a lot of quality assurance crap and they are now hiring college grads for the assembly line, but it still takes good engineering and a good marketing department that will listen to the public to build a good car. My van has had the A/C condenser replaced three times at a cost of $1200 each time. My pick up’s evaporator need replacing because pine needles corrode the tubing and cause it to leak. I can’t afford to fix it. My sister’s Honda, never an A/C problem even though the car is almost 20.

The Japanese cars on the other hand have slipped in their quality control to the point that there products are now having more recalls than ever before. I feel that the reason for this slip or rather plan in reducing quality is that the American public no longer wants the quality as they did in the past due to the lease mentality that we have in the market place today. A lot of people don’t buy cars, they lease them and reduce the buying cycle from 3 or 4 years down to 2 so turn over is huge and the manufactures numbers are somewhat inflated.

One story I want to share is this; I have a cousin who worked for Nippondenso, which supplies a lot of A/C and heater parts all the car companies. About ten years ago he and his team had to go to Florida with special equipment to check the entire shipment of Hondas that were sitting on the dock. They had a charter flight and top accommodations. This was all because an audio engineer detected a whistle in an air conditioning duct in one of the production models during a test in Japan. Out of something like 400 cars they found three of them with this problem which was not detectable by a human ear. Now a days I have yet to hear Honda or Toyota doing anything close to what they used to do for quality and their recall notices are growing.

Well that is my 25¢ worth
 
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