Skip to comments.Detroit: Gold Mine for China
Posted on 07/30/2013 12:46:18 AM PDT by TexGrill
Despite the Motor City's bankruptcy filing last week, its abundant engineering talent and car history lure Chinese automobile companies seeking global expansion, as Michael Barris reports from Detroit.
Detroit is still Motor City - at least to Chinese automotive companies doing business here.
In the past decade, dozens of them have been drawn to the area, not just because of its existing infrastructure, supply network, abundance of skilled workers or tax benefits, but because of Detroit's pivotal role in automobile history.
"It is the center of modern vehicle technology," proclaims John Yang, chief metallurgist with ZYNP International, the US distribution arm of engine cylinder-maker ZYNP China Manufacturing. The facility is located in Romulus, Michigan, about 25 miles southwest of Detroit. "This area still has its strength in technology and talent," Yang said in an interview.
Overwhelmed by a debt of at least $18 billion, Detroit filed for Chapter 9 bankruptcy protection last week, the largest such filing in US history. A legal muddle created by a county judge's ruling that the filing was unconstitutional was lifted on Wednesday when a federal bankruptcy judge cleared the way for the case to go forward without legal challenges.
As China's leadership boosts research and development for auto parts, mandated by the latest five-year plan (2011-15), Chinese automotive companies have stepped up their activity around Detroit, doing everything from R&D on behalf of parent companies back home to making parts exclusively for US auto makers.
Their arrival is welcomed by the state government, led by Republican Governor Rick Snyder, former chairman of California computer-maker Gateway Inc, and ex-chairman and CEO of Michigan venture-capital firm Ardesta LLC. The first-term Snyder administration sees China's interest in learning more about automobile production as a chance to create jobs for a hard-hit region.
(Excerpt) Read more at english.cri.cn ...
Someone can enlighten me but most of the automakers are NOT located in the CITY of Detroit as I recall. They moved out of the city years ago and into the surrounding areas or out of Michigan alltogether. What make “Detroit” so attractive to the Chineese other than cheap real estate?
Its a major port city, the second busiest freight crossing on the continent, land is cheap, and a new bridge is being built. With rising transportation costs and the passage of our right to work law, I wouldn’t be surprised to see China building factories here.
Perhaps by “Detroit” they mean greater Detroit. That would make more sense. I don’t think they mean to employ obama’s sons and daughters living in the inner city there.
Its being attacked from downtown as well which is beautiful these days with big money players dumping big money into the downtown area. The new bridge will virtually wipe out Delray which is the worst area of the city.
The economic fix for Detroit is easy. Political and social are hard but economy will make it easier.
No they didn't, they expanded into the suburbs.....
I can give you the Chrysler Jefferson Ave. Assy. plant, Mound Rd. Engine plant, Lynch Rd......etc. as examples.
Its kind of interesting if you look at perceptions vs realities. (I’ve been looking at birdseye veiws of the packard plant this morning)
The Packard plant is shown as the worst of the worst covering a vast area but its tiny compared to the Cadillac assembly plant across the highway. The Packard property is long and narrow, 1 to 2 blocks wide by several blocks long. You could never build a factory like that today. There are working businesses around it and it looks like many of them use the place for parking trailers and dumping trash.
The architectural firm recently hired to look at the place says that 85% of the buildings are structurally sound due to the fact that it was built perfectly suited to the Michigan environment.
Out of the TOTAL number of automotive plants that USED to be in Detroit, those few are a drop in the bucket.
You mean like Packard and American Motors?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.