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Bailed-Out Chrysler to Build Jeeps in China
National Legal & Policy Center ^ | October 23, 2012 | Mark Modica

Posted on 10/23/2012 11:12:06 AM PDT by jazusamo

Obama

American taxpayers should prepare themselves for another slap in the face, courtesy of the much-ballyhooed Obama auto bailouts. After spending about $85 billion to bail out Chrysler, General Motors and Ally Financial (formerly known as GMAC), taxpayers are being rewarded by Chrysler's parent company, Fiat, announcing that it is preparing to build its Jeep brand vehicles in China. In addition, according to a Bloomberg report, Fiat may end up building all of its vehicles in China , threatening the loss of more manufacturing jobs should the decision be carried out to move Chrysler manufacturing out of America.

Italian automaker, Fiat, was gifted an ownership interest in Chrysler during the Obama-orchestrated bankruptcy process. Fiat paid nothing for the ownership stake, other than agreeing to transfer some of its technology. The Italian company later purchased an additional stake, giving it majority ownership and officially making Chrysler a foreign-owned company. It now seems that American jobs will be lost as a result as Fiat appears to be trying to maximize profits by transferring Chrysler's manufacturing operations to China.

This is not the first instance of China benefiting from the auto bailouts. GM has also made a commitment to expand production in China, even moving its electric vehicle manufacturing platform to that country . The Chinese job creation is coming at an expense to American taxpayers. The latest estimate of taxpayers' losses for the auto bailouts, as recently reported by the Washington Post, is $25 billion . While President Obama campaigns on the "success" of the auto bailouts, the high price tag brings into question just how successful they were. The probability of future job losses in America as manufacturing moves to China adds to the argument that the bailouts were not optimally planned out.

The Jeep brand is arguably Chrysler's (as well as Fiat's) most valuable nameplate. A once venerable American brand is now owned by the Italians and apparently will soon be built in China. The losses to taxpayers on only the Chrysler portion of the auto bailouts are reported to be $1.5 billion. It is increasingly looking like the money was not well-spent if Fiat's Jeep announcement is any indication.

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government
KEYWORDS: bailout; china; chrysler; gm; jeep; obama

1 posted on 10/23/2012 11:12:07 AM PDT by jazusamo
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To: jazusamo

I bought Jeeps in the past, not more.


2 posted on 10/23/2012 11:13:45 AM PDT by bmwcyle
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To: jazusamo

Chrysler must have gotten the tax deduction (about which Obama talks endlessly) for moving jobs overseas.

Hey, China needs Jeeps too. They got some pretty rough terrain over there.


3 posted on 10/23/2012 11:17:29 AM PDT by alloysteel ("If you are going to follow the road less traveled, at least consult your GPS first.".)
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To: jazusamo

Well just damn Chrysler. I’m on my 3rd Grand Cherokee, WAS soon to be looking at buying my 4th. No more.


4 posted on 10/23/2012 11:17:51 AM PDT by carolinablonde
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To: jazusamo

Was pricing Jeep Cherokees this AM.. Have been considering them and the new Ford explorer.

The decision has now been made for me!

Who wants to drive a Jeep Won Ton????


5 posted on 10/23/2012 11:18:50 AM PDT by illiac (If we don't change directions soon, we'll get where we're going)
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To: jazusamo; alloysteel

Why worry about what an Italian car company is doing?

/sarc


6 posted on 10/23/2012 11:22:42 AM PDT by GeronL (http://asspos.blogspot.com)
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To: jazusamo

Are the Jeeps built in China going to be imported into the US? Or kept in China for their domestic market and possibly exported to non US markets?

The fact is that Jeeps are already manufactured in China. After Cherokee (the XJ, not the Grand Cherokee) production ceased in favor of the Liberty, the tooling was sold to China and production restarted over there. I know a LOT of people who would love a new 1984 body style Cherokee ... Unfortunately the tooling transfer agreement prohibited the ChiCom Cherokees from being imported into the US.


7 posted on 10/23/2012 11:30:03 AM PDT by tanknetter
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To: jazusamo

We need import tariffs, and not just if China cheats. The wage differential is so big with China that China doesn’t have to cheat to take our jobs.

And opening up free trade with South America prior to reaching full employment is going to be a disaster too.


8 posted on 10/23/2012 11:32:07 AM PDT by DannyTN
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To: jazusamo

Toyota is now more an American car company than GM and Chrysler...


9 posted on 10/23/2012 11:38:53 AM PDT by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: jazusamo

Toyota is now more an American car company than GM and Chrysler...


10 posted on 10/23/2012 11:40:09 AM PDT by trebb (Allies no longer trust us. Enemies no longer fear us.)
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To: alloysteel; All

Sorry, been trying to post since posting the thread and it’s about impossible. Don’t know if it’s me or FR, everyone else seems to be posting. Hope this posts.


11 posted on 10/23/2012 11:48:41 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo
Photobucket Tank yu fo bail out roun-eye....
12 posted on 10/23/2012 12:21:33 PM PDT by baddog 219
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To: jazusamo

I’ve had Jeep Grand Cherokees for 27yrs; no more. I also really wanted a new Chevy Suburban or GMC Acadia, but no way to any GM products, now. And the Toyota Land Cruisers are way over-priced; darnit. I’ll now go to Ford if/when my current 2002 Grand Cherokee Laredo needs replacing.


13 posted on 10/23/2012 12:58:48 PM PDT by carriage_hill (The 0bummer Penguin & Bidet Joker: We played this country like a harp from hell.)
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To: jazusamo
If the huge tariff was removed on car imports to China, the Chinese middle class could afford to buy the US made Jeeps. I hate this, we are screwed. It is all designed to bring the US middle class to its knees.

Talk Radio (to wit Limbaugh) is pro Free Trade, until that changes NOTHING changes. Romney is a Free Trader, no doubt.

14 posted on 10/23/2012 1:11:35 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: jazusamo

It’ll be cold day in he!! before I buy a car made in China.


15 posted on 10/23/2012 2:05:57 PM PDT by Vinnie (A)
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To: jazusamo

I just picked up my 2013 Jeep Grand Cherokee Overland 4x4 that I ordered from the factory. I’m glad I did this before the assembly moved to China, but already the engines are made in Mexico, so the ‘Made in America’ label is only partially true at this time anyways.

In any case, I would not have even considered it if the thing was being assembled in China.


16 posted on 10/23/2012 3:35:09 PM PDT by Pox (Good Night. I expect more respect tomorrow.)
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To: Pox

I bought a brand new Mustang. I just found out that the transmission is made in China. Sucks.


17 posted on 10/23/2012 3:36:37 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: jazusamo

This is journalistic malpractice.

There is not plan to move all production to China.

They want to restart production in China for the Chinese market, not for export to North America.

This is the stupidity of the media and even Romney fell for it.


18 posted on 10/26/2012 4:51:20 AM PDT by Erik Latranyi (When religions have to beg the gov't for a waiver, we are already under socialism.)
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To: jazusamo; bmwcyle; alloysteel; carolinablonde; illiac; GeronL; tanknetter; DannyTN; trebb; ...

This is journalistic malpractice.

There is not plan to move all production to China.

They want to restart production in China for the Chinese market, not for export to North America.

This is the stupidity of the media and even Romney fell for it.


19 posted on 10/26/2012 4:54:26 AM PDT by Erik Latranyi (When religions have to beg the gov't for a waiver, we are already under socialism.)
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To: Pox

... ‘Made in America’

More like ‘(Partially)-Assembled in America’, these days.


20 posted on 10/26/2012 6:08:16 AM PDT by carriage_hill ("0bummer's a towering figure" - even a Garden Gnome casts a long shadow at sunset.)
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To: Erik Latranyi
"They want to restart production in China for the Chinese market, not for export to North America."

Who believes that once they have the plant built there, they will only produce for the Chinese?

And even so, the totality of the U.S. trade arrangement with China is stupid and bad for the U.S. We've got 25% unemployment and everything in walmart is made in China. It's time to restore the trade barriers and put Americans back to work for Americans.

The Chinese can work for the Chinese. They can work for us only to the extent that it doesn't cause unemployment and doesn't damage critical industries. Of course that means communist China must lower their 90% tax rates or no one will be able to buy that jeep.

21 posted on 10/26/2012 7:34:17 AM PDT by DannyTN
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To: Erik Latranyi
The Bloomberg piece linked in this article says Fiat “may” end up building all it's vehicles in China, I'm not sure if that's the writer or spokesmen for Fiat.

There's a lot of talk on the Internet about it and many seem to think once Fiat is geared up for Jeep production in China they just start making all of them there. I don't know one way or the other.

22 posted on 10/26/2012 8:01:48 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: Erik Latranyi; All
A piece just posted at The Hill written by Keith Laing says the Bloomberg piece is in fact misleading. Thanks EL.

Chrysler: Romney wrong, Jeep not leaving for China

excerpt:

"Let’s set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China," he continued. "It’s simply reviewing the opportunities to return Jeep output to China for the world’s largest auto market. U.S. Jeep assembly lines will continue to stay in operation. A careful and unbiased reading of the Bloomberg take would have saved unnecessary fantasies and extravagant comments."

23 posted on 10/26/2012 11:39:30 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo
There's a lot of talk on the Internet about it and many seem to think once Fiat is geared up for Jeep production in China they just start making all of them there. I don't know one way or the other.

First, the Chinese auto market is nearly as large as North America.

Second, the story is about building the entire lineup in China.....for the Chinese market, not for export back to the US.

Only an idiot would think they are going to build all Jeeps in China for the rest of the world.

24 posted on 10/26/2012 4:05:03 PM PDT by Erik Latranyi (When religions have to beg the gov't for a waiver, we are already under socialism.)
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