GM Holden may have to increase and extend dramatically its US export program

[douglask]

GM HOLDEN may have to increase and extend dramatically its US export program after parent company General Motors put all its US rear-wheel drive programs on hold in the face of proposed stiffer fuel economy standards.

At first glance, the new standards will make it harder for GM to produce rear-wheel drive cars in the US, especially the high-performance V8 models.

But GM will have the option of building the cars outside the US because the corporate average fuel economy (CAFE) standards apply to imported cars and domestically built cars separately. GM imports most of its small cars and makes the majority of its larger cars in the US and Canada.

Should GM decide not to make RWD cars in the US, it will have to make them elsewhere, but a GMH spokesman was uncertain about the consequences of the stiffer fuel economy rules. "As it's not our policy to speculate on future production or portfolio issues, we're not in a position to offer any elaboration on what implications - positive or negative - such a suggestion might have," GMH spokesman John Lindsay said yesterday.

GMH is set to start exporting a V8 version of the Commodore to the US as a Pontiac G8 later this year. The parent company was planning to start making the G8 in the US but the stiffer fuel economy regulations may prompt GM to keep sourcing its G8s from GMH after the two-year contract expires.

Mr Lutz said the three one-litre compact cars GM displayed at the New York Motor Show would not help the company meet the stricter economy rules. "Small-car mileage only counts towards CAFE if you build them here, and you can't build small cars here at a profit," he said.

Full article:

http://www.theage.com.au/news/business/sti...5971179970.html

[Dragon]

build v6 Zeta's in Oshawa and v8's in Austrailia. ship the v8's here and then the v6's going on the return trip

[gm4life]

Good idea, there is always a loop hole in a govermental rule, I love it. Just start building 'em already!

[Drew Dowdell]

GM Shanghai.

[Dragon]

build and sell them with I-4's then let the dealers give customers "free upgrades" to v8's

[Z-06]

So as long GM survives. thrives and builds World Class cars, we have no problems where they come from.

It seems like politicians here do not want American Car Manufacturers to survive in US at least not their manufacturing plants.

[CSpec]

Why are GM imports better than all other imports? I think this should demonstrate that there should be no barriers to imports in this country--if it makes more sense to import something, you should obviously let them.

[Drew Dowdell]

Why are GM imports better than all other imports? I think this should demonstrate that there should be no barriers to imports in this country--if it makes more sense to import something, you should obviously let them.

It's a loophole around the stupid CAFE laws. Besides, the sales of an imported car built by GM still helps my GM stock.

[Oracle of Delphi]

I don't know how they will manage that, with only one assembly plant and still satisfy, their home market, Asia, Mid East and South Africa. Also their UTE production.

Edited April 12, 2007 by Pontiac Custom-S

[Northstar]

Aren't they building a plant in Asia somewhere?

[Z-06]

Aren't they building a plant in Asia somewhere?

Yeah they were planning to build one in India with export only capabilities, however my guess is only for the FWD small cars.

[SuperSport623]

wait, so CAFE laws apply to cars built in Canada? i guess so cause if not Oshawa would be golden

[Dragon]

wait, so CAFE laws apply to cars built in Canada? i guess so cause if not Oshawa would be golden

http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or (after the passage of NAFTA) Mexican content) and a foreign fleet (everything else).

[gm4life]

Ah the goverment should worry about important stuff like the war and the boarders. Not CAFE, and uh just bring the darn Park Avenue already!

[VenSeattle]

http://en.wikipedia.org/wiki/Corporate_Average_Fuel_Economy

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or (after the passage of NAFTA) Mexican content) and a foreign fleet (everything else).

You left something important out of your quote, Dragon -

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or (after the passage of NAFTA) Mexican content) and a foreign fleet (everything else). Each of these fleets must separately meet the requirements. The two-fleet requirement was developed by the United Automobile Workers (UAW) as a means to ensure job creation in the US. The UAW successfully lobbied Congress to write this provision into the enabling legislation. The UAW continues to advocate this position.

This is a true form of irony.

[regfootball]

wow, they are smart. this gives them leverage against the UAW and allows them to hose CAFE/outsource at the same time!

BRILLIANT!

don't blame this on GM. they would build these cars here if the government and union were cooperative.

this is the beginning. the beginning of GM saying, screw you everyone, we need to build our cars where we can make money and not have to get screwed by rules and regs.

in like 10 years the only jobs GM will have here is marketing and sales. that's the hand they are dealt, though, so that's the way it's gotta be.

Edited April 13, 2007 by regfootball

[Z-06]

wow, they are smart. this gives them leverage against the UAW and allows them to hose CAFE/outsource at the same time!

BRILLIANT!

don't blame this on GM. they would build these cars here if the government and union were cooperative.

this is the beginning. the beginning of GM saying, screw you everyone, we need to build our cars where we can make money and not have to get screwed by rules and regs.

in like 10 years the only jobs GM will have here is marketing and sales. that's the hand they are dealt, though, so that's the way it's gotta be.

I think it will be an excellent strategy. Rather than grinding their teeth and walking on the four limbs to beg the politicians and UAW; just avoid them.

Then they will come to know about the importance of the domestic auto industry.

GM and Ford can whither that; however I doubt Chrysler can. Unless if owned by Magna it will be a different animal.

[big blue]

You left something important out of your quote, Dragon -

For the purposes of CAFE, a manufacturer's car output is divided into a domestic fleet (vehicles with more than 75% U.S., Canadian or (after the passage of NAFTA) Mexican content) and a foreign fleet (everything else). Each of these fleets must separately meet the requirements. The two-fleet requirement was developed by the United Automobile Workers (UAW) as a means to ensure job creation in the US. The UAW successfully lobbied Congress to write this provision into the enabling legislation. The UAW continues to advocate this position.

This is a true form of irony.

:AH-HA_wink: Edited April 13, 2007 by big blue