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GM Already Powers Chevy Equinox with Chinese-Made V6 Engines
Alarm bells started ringing in Detroit when Ruediger Grube, head of DaimlerChryslers Chinese division announced that
his organization may build new Chryslers destined for the North American market.
"We would like to establish here in China an export joint venture for Chrysler products," Grube told reporters on the sidelines of the Shanghai auto show. "Today we are not talking about Europe. We are talking about North America."
Later, during an interview with Reuters, Grube declined offer more detail about the plan.
"Exploring the idea and actually  | | DaimlerChryslers Chinese division may build new Chryslers destined for the North American market, but not existing products like the 300. (Photo: Trevor Hofmann, American Auto Press) | doing it are worlds apart," he added. "We are being very cautious on this because we see how quickly market conditions can change, in China as well."
Its not like the potential for such an announcement was unexpected, but more like someone with a terminal disease being told  | | It was inevitable that a North American-based automaker would eventually consider building its compact models in China. Only time will tell if Chrysler Group will. (Photo: Alexandra Straub, American Auto Press) | that he only has three months to live. In other words, it was inevitable that a North American-based automaker would eventually consider building its compact models in China, and exporting them to its home market.
After all, the North American manufacturing industry has been under siege from foreign markets with cheaper labor costs for years,  | | The number one selling sedan in the U.S. is not a Chevy Impala or Ford Taurus, or, despite its recent success, Chryslers 300. (Photo: Trevor Hofmann, American Auto Press) | but the domestic auto industry seemed sacrosanct, or at least it was previously thought that the Big 3 would refrain from importing new models from China in an effort to compete.
But the times, they are a changin. The Big 3, especially General Motors and Ford, are struggling with a myriad of problems, not the least of which is delivering well made, well priced mainstream vehicles to a populace that truly wants to buy them for what they are,  | | How to fight off the imports? Become one, of course. Chryslers European-made Crossfire has targeted a small volume niche market, however, and potential Chinese-made Chryslers would be mainstream models. (Photo: Trevor Hofmann, American Auto Press) | not for any incentive added to the bottom line. The number one selling sedan in the U.S. is not a Chevy Impala or Ford Taurus, or, despite its recent success, Chryslers 300. No, its the Toyota Camry with Hondas Accord following closely behind.
How to fight off the imports? Become one, of course. The debate is on, however, as to what must be done in order to remain competitive, including whether or not components
and/or entire cars can be imported from the Far East without causing more pain  | | GM doesnt advertise that its popular new Aveo subcompact is made in South Korea in its GMDAT plant. (Photo: Alexandra Straub, American Auto Press) | than gain for the domestic producers. Taking advantage of lower cost wages, fewer employee benefits and a complete lack of trade unions initially sounds like a recipe for success, but many market analysts feel that the opposite is true, however.
This move would without doubt rupture brand loyalties of those who traditionally purchase domestic cars, the "Buy American" crowd that live and work in the manufacturing belt of the American Mid-West especially.
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