The General Motors Corporation is an American automotive corporation which has a headquarter in the Detroit, Michigan. It will shift more production of vehicles bound for the United States market to China, Mexico, South Korea and Japan. However, it will keep total imports at roughly one-third of all sales here. In a confidential 12-page presentation to members of Congress, obtained by the Detroit news, GM said that it will boost United State sales of vehicles built in those four countries by 98 percent or about 365,000 vehicles while shrinking production in the Canada, Australia and European countries by about 130,000 vehicles.
General Motors also disclosed it that will start importing vehicles made in China in 2011, reaching 51, 546 vehicles in 2014. Imports from South Korea to the United States will jump from 36, 967 vehicles in 2010 to 157,126 in 2014. The automaker said that it is canceling expansion projects in Russia, Mexico and India.
To import more vehicles from low-wage countries raises questions about whether it should beef up its foreign operations as it is relying on federal money to stay afloat. It also puts the automaker at odds with the United Auto Workers, which is trying to protect United State jobs amid a dramatic restructuring of the domestic auto industry.
General Motors faced strong protests from the union that its turnaround plan unfairly targets United States workers and plants for cuts. General Motors plans to trim 21,000 hourly workers and close 13 of its 47 United State plants by the end of 2010 as part of a tougher recovery plan sought by the President Obama’s auto task force. It will be close three more United State plants by 2014.
The legislative director Alan Reuther said in the congress that the latest restructuring plan put forward by the company calls for the closing of 16 manufacturing facilities in the country. The ripple effect at suppliers, dealers and other businesses will cost tens of thousands of additional jobs devastating numerous communities across the United State.
In between of 2010-2014, General Motor’s restructuring plan also calls for a 98% increase in the number of vehicles, it will be importing into the United States from Mexico, Korea, Japan and China, this is with the number of imports from these countries increasing from 371,547 to 763,743.
The share of the General Motor’s sales in the United State market that will be imported from the countries will increase form 15.5% to 23.5%. The overall number of vehicles, the General Motor will be importing in 2014 that represents the production of four assembly plants. The outsourcing helps business in a good way, though some people do not want to outsource but they should know the importance of outsourcing, like in our company we have the best way to work with our client because we use the outsourcing strategy.
REFERENCE;
http://www.economicpopulist.org/content/gm-offshore-outsourcing-us-jobs
http://militaryagainstgop.newsvine.com/_news/2010/10/27/5360169-gm-offshore-outsourcing-us-jobs-the-economic-populist
http://www.cio.com/article/464139/GM_s_Visual_Modeling_Outsourcers_in_India_after_Obama_s_Win_Green_IT_and_More
