Posted on 07/30/2015 6:43:32 PM PDT by VinL
General Electric is taking steps to shift some U.S. manufacturing work overseas now that the U.S. Export-Import Bank will be shuttered at least until September....
GE Vice Chairman John Rice said the conglomerate is bidding on over $10 billion worth of projects that require support from an export credit agency (ECA) like Ex-Im.
With Ex-Im unable to extend new loans or guarantees thanks to an effort by congressional Republicans to shut it down, GE is arranging with ECAs in other countries to finance the deals involved, with much of the production going to GE plants in those foreign locations. The prospective government partners include Canada, the United Kingdom, France, Germany, China and Hungary...
"We're submitting the tenders now. So we are identifying where we'll bid this and the ECA support that comes with it, and it's not in the United States," Rice [said].
Ex-Im has been unable to consider any new financing requests since Congress allowed the bank's charter to expire on June 30.
Rice's comments come as the U.S. Congress starts a five-week summer recess with no clear path to revive Ex-Im in the months ahead. ...
Boeing chairman Jim McNerney ... said the aircraft maker was actively looking at moving "key pieces" of its operations to other countries that could offer export credits.
Rice, who is based in Hong Kong, said GE is not moving to shift work and jobs overseas "just to make a point" to Congress, but to win contracts that require export credit agency support. "We're doing this because if we don't, we can't submit a valid tender," he said.
In one such power-sector bid, for example, GE would do final assembly work on its aero-derivative gas turbine power generation units at GE plants in Hungary or China instead of a factory in Houston. (snip)
(Excerpt) Read more at businessinsider.com ...
Translation- Texas will get hurt, if Cruz doesn't allow Boeing and GE corporate welfare.
Good luck with that, bucko.
Liberal Democrat propaganda.
Maybe they can ship NBC and MSNBC to China.
Those channels could teach the Chinese something about anti-American propaganda.
GE is threatening somebody on the Committee on Armed Services? Pretty ballsy.
Bingo. Never let the truth get in the way of the agenda.
GE & Boeing are definitely playing hardball to some extent.
But they aren’t kidding. Foreign governments play for keeps and don’t get worried about ideological purity.
“Offsets” - subcontracts for parts - and secured, preferential financing are all used across the planet to win big contracts.
Coface in France is especially successful, and Airbus pioneered walk away wet leases to U.S. air carriers which drove McDonnell Douglas out of business. Boeing bought the scraps.
So while some people may think it’s “picking winners”, the reality is that the rest of the world doesn’t play fair. And the Boeings and GE’s of the planet know that. So they have fight anyway they can.
You can call it corporate welfare. But at the moment it’s just fighting fire with fire.
ping
Gee, has GE paid any income taxes lately?
Now they won’t have a need for H1B’s.
GE has been outsourcing an ever greater portion of their work to China all along.
Imelt happily pushed for the CFL bulbs and happily started making them in China.
Isn’t it true that GE and Obama are joined at the hip???
GE is one of the worst at sending jobs away from the USA.
They’re also big-time behind all the global warming BS. They’re positioned to make a fortune off of that.
Shutting the Ex-Im Bank was stupid stupid stupid. I think China bought off the Republicans to make this happen.
GE is playing by the rules. They will go where they can do business most profitably. That’s why we need Trump. Trump is the only one talking about changing the rules. Trump is the only one that understands the economy.
The truth is that the couple of percent savings by having Ex-Im bank financing is not the major consideration. The wage differential between countries is driving GE’s decision. The loss of Ex-Im banking may have been the final straw, but it was just a straw.
I quit buying anything GE so long ago I don’t remember exactly why. Something scandalous. No appliances, not even light bulbs. I have 100s of the old light bulbs stockpiled, not one is GE. I think I do remember them not paying taxes.
Don’t they fund Soros toys?
And if the United States had any balls, we would tell GE that they can forget about ever getting another military or government contract if they try something that stupid.
I see, every tax-paying citizen of other countries support their multi-millionaires and multi-national corporations with their tax dollars, so Americans must do it to? That’s the ONLY way to even the field.
To heck it is. We could play hard-ball and use selective and directed protectionism and get the attention of other countries right away. See how they like have US markets closed to selected industries until the playing field is level. Certainly, there will be some blowback and collateral damage, but in the long run, the free market will be better off, to say nothing of US taxpayers.
Oldplayer
I was a General Electric jet engine designer for ten years. Many of the commercial jet engines were off limits to The Communist Chinese for decades now because they had cores that were military derivatives. If GE unilaterally decides that this is no longer reasonable then maybe some conservatives should decide to treat them as the traitors in which they’ve become. Why give jet engine technology away to our enemies, and make no mistake about it, this is what this is. We’re talking National Defense here, not some washing machines. It’s time to play some hardball with whoever is running GE. This suggestion is criminal and deserves some congressional investigation. Yea, I know, roll over and play dead republicans will never do anything in the country’s best interest.
A friend works for ge. He says everything they make sucks except for their vacuums
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