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Volkswagen to Begin Talks With Labor on Cost Cutting (NY Times)
Ex-Volkswagen CEO Martin Winterkorn could get a severance package worth more than $65 million, according to the Wall Street Journal.
The NOx will have to waft across the Southern border to get you. I would bet there is NO possible way they can tell the difference in our air quality in CA. If they could why weren't they looking for a cause over the last 6 years?
EPA standards are just a big joke.
Volkswagen has told the banks supplying the credit line that it will sell its assets if no other way of repaying the loan is possible, according to two sources."
VW 'could sell luxury brands' to fund Diesel-gate loan (theweek.co.uk)
"But as Volkswagen drifts into a third month of a seemingly unbound scandal, that tone is changing and dealer frustrations are bubbling to the surface. The absence of a ready-to-go fix, plus continuing inventory shortages and the prospect of more new-car sales pain, is stirring angst and even anger in VW's dealer network.
"This thing isn't getting better with time," said Alan Brown, co-owner of two Hendrick Volkswagen dealerships in suburban Dallas and chairman of VW's dealer council. "We don't have a fix. We don't have a timeline." The unknown, he added, is "what makes the anxiety of this even worse."
VW new-car sales nosedive: What's next? (autoweek.com)
General Motors to Sell China-made Vehicle in US First
NEW YORK - General Motors (IW 500/5) says it will sell in the United States next year a vehicle made in China, becoming the first major U.S. automaker to do so.
The move was quickly denounced by the powerful UAW auto union, which branded it "a slap in the face" and called for an immediate rethink.
GM has sold 127,085 Buick Envision SUVs, made in the eastern province of Shandong, since January in China.
The automaker plans to import 30,000 to 40,000 of the vehicles each year, amid high demand for 4X4, crossover and pickup trucks in North America, as oil prices dip.
The controversial announcement comes as labor costs are set to rise for GM in the United States following a wage deal currently being finalized.
http://www.industryweek.com/companies-executives/general-motors-sell-china-made-vehicle-us-first
This is what sells, cars like the Passat and Jetta are cheap appliances. The retiring boomers want small vans like the Sharan and CUVs like the Tiguan.
And yeah, someone else will get in the crosshairs soon enough.
GM/Ford/Chrysler will built their SUVs in China and import it here while the cheaper appliance like sedans will be made in Mexico.
UAW stranglehold will be slowly broken to make the USA brands more competitive with the Japanese and the Koreans.
GM couldn't have avoided bankruptcy even if the UAW worked for free. They were totally mismanaged.
http://marketrealist.com/2015/02/raw-materials-biggest-cost-driver-auto-industry/
Chinese built cars will meet tremendous market resistance - these aren't phones or cheap toys. If the wondrous most favored "partner" becomes belligerent on the domestic or international front, that will hurt too. Even the brave and vital demographic who likes cheap at any cost - so long as the negative externalities are sent offshore - will be hesitant.
Regarding 10% of Americans from my friend gagrice, I don't buy it. When a Chinese-built product will come at little to no cost savings, as I expect from this Buick, consumers can afford to be choosy, and material from that place has a worse rep than Japanese stuff did in the 50s - not to mention the rep of the actions of the nation itself. Unfortunately, the boomers mentioned seem to be the "cheap at any cost" demographic, no matter that they'd be supporting a system they once marched against. I guess money talks...
GM's has been dealt a very good hand right now. So let's see how they play it---skillfully, or oops I think I just shot myself.
Of course, "they" were right about Simcas, Fiats, Peugeots and Renaults.
Americans buy millions of $800 iPhones, iPads and iPods without blinking an eye. Apple is the most valuable company in the World on the backs of Chinese labor and the Bucks of Americans. Apple could buy GM and F out of petty cash.
I'll convert the fintail to a hybrid or electric powertrain and drive it forever without an airbag etc than risk it in the stuff in that pic.
I suspect China will have a faster learning curve due to stolen/joint venture gifted IP, but I still wouldn't roll those dice. I bet you won't be buying one either
There is NO doubt about that. As they are not big on diesel in China. I will NEVER buy another gas vehicle. Nothing offered with gas power that I am attracted too. So far the Germans are the only choices for me.
You can count on the Buick Envision built in China to be a big seller with the Buy American crowd. They only look at the name. Just a bunch of sheep. My PHD buddy bought a GMC Terrain. I told him he was supporting the Canadians. He did not believe me till he researched it. He likes it even though it has been in the shop for recalls and repairs. GM is 3rd World in my book. Never again.
http://www.carscoops.com/2015/12/buick-envision-coming-to-united-states.html
I don't think Buicks are big sellers to any crowd on this continent anymore, their traditional demographic is vanishing. I stand by a prior prediction - it will sell to fleets, proud expats, and some brand loyalists or bargain hunters who don't know or don't actually care (even if they claim otherwise). It'll be a niche vehicle - good luck getting people out of their CRVRAVscapes or Korean equivalents. I doubt it will be a troublesome vehicle, as QC will be over the top - it has something to prove.
Bit off-topic but kind of fun:
Audi plans ice track to test cars on Alaska's North Slope (ADN.com)