The Buick Envision may become one of the biggest headaches for General Motors, as contract negotiations continue for the automaker and United Auto Workers union.
According to a report from Automotive News, the UAW has called the rumored potential move to import the Buick Envision from China to the United States “alarming.”
We’ve already spied the midsize Buick crossover testing on Michigan roads and, it’s a near certainty the CUV will hit the U.S. market sometime in 2016, with most guesses pointing towards mid next year.
But, the UAW wants the crossover built in its domestic market, as Cindy Estrada, Vice President of the UAW’s GM department, says the union will raise the potential scenario during 2015 contract talks.
“The Envision should be made in the U.S. by the workforce that saved GM in its darkest time,” Estrada said. “GM should stand by its declaration that it will build where it sells.”
According to the report, a Buick spokesperson said the brand has not made any final decisions on whether the Envision will make its way to the U.S. market, and declined to comment further.
Only time will tell whether or not we see a U.S. country of origin from the Buick Envision.
Comments
It’s an interesting problem, isn’t it?
If you’re not a nudist, it’s likely you’re wearing clothes from China. And so car companies ask if our clothes can be made from Chinese slave labor, why not our cars? Especially if said company is truly global. Add to this that China buys more Buicks than America does — by a factor of four — and things get very… muddled.
It would seem to be a global balance of manufacturing is in order. That if the Chinese make their own Envisions, the cheap labor helps offset our more ‘expensive’ labor. I quote expensive because if we don’t keep jobs here… fewer people have the income to afford new cars. And so the money you ‘save’ in Chinese manufacturing is ‘lost’ in domestic sales.
The thing that makes me laugh is that the very people who want Chinese manufacturing and hate unions resent domestic income redistribution. Yet by building in China — we accomplish just that. We hand over chunks of our domestic wealth to the Chinese. That last time I checked I heard the Chinese were commies, hacking our Gov’t servers, and essentially peeps we’d otherwise have nothing to do with.
Can anyone explain to me why we’re not retreating from China in general? Are we that addicted to slavery or it something else?
We’re addicted to money. China is the most important market in the world. The reason is that companies like GM and VW can build millions of vehicles there and it helps lower costs for the rest of the worl. GM is going to sell between 3.5 and 4 million vehicles there, creating an economy of scale, meaning parts for the Cruze or Astra will be cheaper because GM will be able to buy more at a lower cost or even build themselves and maximize factory output. This creates a competitive advantage, similar to what the Japanese did to us.
Why do we deal with China?
Simple!
First off as much as everyone complains about Walmart people want cheaper prices for goods and to stretch their pay. It comes down to the public if given a choice of American or Chinese product they will take the cheaper of the two majority of the time.
Second out government has to have China to bail them out on all their spending. The loans we have are needed to pay for all the social programs they want to hand out. Free Collage, Free Health Care, Free what ever else you can promise for our votes. The people in office let the public vote the treasury and it is a means to an end.
The fact is the best things in life are not free and you have to go out and earn them. Unless you are on of the 53% on the movement dole.
Time to make people deal with life on real terms. No free government Cell Phones, No free Collage, no life time Welfare. Time people started to make their own way. The Chinese come to our country with nothing and educate their young and make their own way why can we not do the same?
So if the %47 wasn’t so damn ‘lazy’… why… we’d be as right as rain with our trade deficit. Got it.
:eyeroll:
No but we would be much better off with out our own government in major debit to a large foreign country.
Or do you really approve of us barrowing so many billions to pay for the waste of government?
Just saw a story last nigh how so many are in government housing yet make in many cases $350K or more. Even in one case over a million dollars. Why because they qualified for the money when they applied but the government never goes back to check on them after they move in.
No these were not rare or random cases. The truth is we have the money but we waste so much of it.
I see it in my wife’s job as she works for the government and they piss money away all the time. She hates it but has no power to change it yet her part of the government keeps going back to the people asking for more and more.
You have a problem with good stewardship of our tax dollars? If not then you are part of the problem.
If our country was run like a corporation we would have failed years ago.
Darn that pesky %47! With their savings and loans debacle! With their hawkish war spending! With their housing loans fiasco! And their giant salaries!!!
You sound like a Tea Party spokesman! GM should not be the first Chinese automotive importer so soon after the bailout.
From a PR standpoint, it will be disastrous. In case you haven’t noticed, economic nationalism and fear (Trump) are in the air and this will be like Romney starting that Jeep moves to China rumor except more powerful because true.
Good American jobs aid the economy. Henry Ford understood this and transformed workers into car buyers. In fact, Detroit and the Big 3 built the US middle class.
Your 53% of takers remark is ignorant–lacking in intellectual rigor and common sense. This is what happens when a nation deconstructs it’s industrial base. Furthermore, while its true that many do not pay an income tax due to exemptions & deductions, they nonetheless pay sales, property and assorted other surcharges and taxes. (That is more than the many firms receiving corporate welfare).
In exchange for the payment taxes, yes, people expect “free” health care when low income or facing expensive treatment. Would you rather watch the poor die? Medical bankruptcy should not be clogging courts! Our tax dollars are societal due and we buy ourselves a safe civilization because hungry humans can be dangerous.
Germany gives health care and education in exchange for tax dollars. Germans can do this because labor is powerful and companies are viewed as stake holders and not just job providers. Part of the credit goes to German shoppers, too, who favor European domestic products as opposed to made in Japan Honda autos therefore employing neighbors.
A premium priced high margin product like Envision should be built by unionized North America workers.
People like you, Scott, are overly proud of themselves and it’s time to stop patting yourself on the back for being such a model citizen. You have a sub par understanding of economics. You’re the sort who make Sen Bernie Sanders look highly attractive.
PS: College is spelled college, not Collage. Also, the word college does not require capitalization when written.
Subsidizing college is good for America. While it may annoy you, the US requires a new generation of doctors, nurses and English teachers.
The anti-union mania, jealously, sweetie across America is stunning. Workers deserve a shot at the middle class and the established domestic players wouldn’t drop prices if unions disappeared tmrw.
Only tea party folk want Chinese slaves because it hits the G spot of their mean streak.
Stephen I am not a tea party person so stop with the labels right now. I don’t call you a Saul Alinsky radical do I? You don’t know shit of who I am so stop with the labels.
The fact is GM has to do the things the others are doing to be competitive. If not you put them at a disadvantage and they will need to be bailed out again. Like it or not this is how free enterprise systems run and the good is the freedom you have to build a business but the bad now that we are a global economy now is the jobs can go global. To remain relevant your home markets have to be competitive. If your labor is not competitive someone else will take the job. Sorry no more free rides here or anywhere anymore.
Again Stephen the bottom line is that the first job of a company is to make money not employee people. Not a pretty thing but part of how this all works.
You want to fix collage start with the prices they charge. Today they are milking he system and over charging for what they offer. You think health care cost are out of control collage is even worse. Does it or should it cost $100K a year to educate someone in any field? No.
Also the world needs ditch diggers too. Nothing wrong with the skill trades as even my father in law made six figures as a welder and it was due to his skill not some union. They paid him more and more to keep him as he was good at his job and showed up every day. Do many will not even show up anymore due to the poor work ethic many have today.
Hell we lost one guy at work because he missed too much time to play video games. He was 35 with a family too. That does not even count the folks we can’t hire because they can not pass a simple drug test.
If a company can not make a product at a competitive price they will fail. Price of a new vehicle today averages $35,000 and is only going to go up.
The reality is the Unions drove away more jobs than they saved. If they would just work with most companies many jobs would have been saved. In many cases Union reps hard lined things and when the jobs left they took their money and let the members hanging. My grandfather knew that first hand as a URW employee.
There is nothing wrong with a union just they need to be competitive on a global scale today. Here rubber workers were getting paid for 8 hours for 6 hours work. They refused to give 8 hours and lost all the jobs in town. On the other hand we now have clean air with no jobs.
GM Lordstown is a great example where the union is working smart and competitive. Because of it they have good amount of work and little fear of losing their jobs and they make a good competitive wage.
Unions didn’t ruin one job. “Free Trade”, which isn’t so ‘free’, by the way, has sucked away jobs and increased the need for welfare. It was pimped by corporate America as the solution yet is the problem and a job killer.
Notice Japan, China and Germany have been very careful and only agreed to fair trade deals? (History teaches that free trade weakens you and strengthens rivals like the UK & Germany pre WW 1.)
GM is a strong company today that earns roughly 80% of profits at home. Let’s not start out with or buy into the hype that GM will fold unless allowed to outsource jobs especially given recent profits and margins. VW survives often at 2% margins in Europe. GM keeps Opel in spite of painfully tough labor standards.
Buick is a premium brand therefore can easily afford American labor. It’s a fair bet to say that GM won’t be passing on the Made in China cost savings on to consumers.
American productivity is at its highest rate, ever, so let’s not blame video games for the outsourcing of labor. Under JFK, productivity was lower, production /sales were at lower volumes and taxation higher (52% corporate).
As for assistance to the poor, recipients receive 9 cents on the dollar due to innefiency–don’t blame the needy, blame government! Furthermore, our national debt was built on tax cuts during time of (needless) war; the stimulus; and interest payments, so let’s not get angry (jealous) with students, the sick, or the needy because many of these folks are victims of free trade deindustrialization.
GM doesn’t need the negative press of being the first US auto maker to exploit China’s low labor standards. Slave labor instead of American workers will harm sales regardless of sales.
Stephen the fact is everyone wants to be a millionaire here but they all want to shop at Walmart. It just does not work that way.
If I may Stephen, and as to my original posting — we are ALL already propping up China’s Slavery Society. If you’re wearing any clothes (and you really ought to put something on) — you’re hitting that G-spot too.
I’m a fan of branding. Especially old brands re-branding. That’s why I linger in these parts because it fascinates me. GM may see itself as an historic behemoth, but from my POV it’s simply a dated brand underdogging it’s way back to relevance.
JCPenney has been in a very similar situation over the last number of years. How to shed it’s old lady branding without shedding the old ladies who support it. How to bring in new blood. It’s VERY tricky. VERY where Buick is right now.
What almost no one knows is that JCPenney actually dramatically improved their product for younger women buyers. I mean they hand the likes of the Gap their butts. When you carefully shop sales and coupons, their prices are the same (if not better) than those sorry TJMaxx/Ross/Marshall’s crapoloa.
But when you see the prices in that place (after coupons), my wife has to ask how they make a nickel. And it’s the Chinese slavery thing. If they sell a top for $8 or a dress for $18 — they still make money hand over fist. Not Macy’s money, but money. My wife never used to shop their before — because it was garbage. Now she cleans out the place, because as Scott3 suggests — pricing matters.
The irony is that the more expensive stores use the exact same slaves to make things. So when you’re in Nordstroms, yeah, you’re paying for better fabrics and pricier designers… but they’re nowhere near as expensive as the labor… and that labor is still pennies per hour.
And so GM eyeballs Chinese cars with a big wide grin. Imagine slaves making our cars for peanuts. It’s simply irresistible. It’s like free sex from Hollywood celebs. What — you’re gonna say ‘No?’ lol
As my initial post in this thread suggests, why shouldn’t China make Buicks for itself if China is Buick’s biggest market? Certainly you’d agree it would absurd to build them all here and ship 3 out of 4 of them over there? Right?
I recently bought my first American car ever — the Buick Encore. I bought it, however, fully aware it was a European Opel. German design, Chinese parts, Korean assembly. Do I feel a little dirty? Yeah, a little, but I didn’t buy it because it was Walmart priced (which it wasn’t). I bought it because I frankly trusted Germans to design better than Americans (Sorry peeps!) and it’s very hard to get this kind of CUV domestically in the first place. After all, companies like GM dream up ways to make you buy bigger and bigger — and then get all ‘surprised’ when Encore is a big hit. They’re probably PISSED it’s doing so well.
Understand, I’m not picking on you Stephen. I’m just encouraging you (in this scenario) not to join the Tea Party/%47 fingerpointing foray into Horse-Shinola Junction.
I think my initial question sticks to “but why China?” of all places. GM is in India. It’s in Europe. If we are to empty our treasuries — can’t we find a better country than China for Dog’s sake?!? C’mon GM — I mean if China is ‘groovy’ why not employ Cuba? Greece? Or local favorite — Puerto Rico?
(There are misspellings above. Know why? Don’t give a crepe.)
Wow where does on start here?
You really consider the Encore a German car and that Germans make better cars?
Sorry John but it is a global world and the lines are no longer drawn as strong as they used to be. The truth is most cars today not all are global designed and engineered.
As for the Horse Shit you claim? How is your taxes in California with all the social programs supporting everyone and anyone there. Going Bankrupt aren’t you? Funny how all the states and Cities that are going broke are blue cities and they expect the rest of us to bail them out.
The slavery thing is way over played in China. It is a socialistic system where the government controls things. You are not a slave as much a restricted citizen. Also it is not America and they do things different there. I do not agree with it but that is how they do it.
Hmm Lets see the government over in China is Cradle to Grave Social government. Sounds like California only with more restrictions.
Scott, I don’t think that you understand China very well. They gave up on socialistic effects such as universal health care in the 1990s. The Chinese Communist Party has been State Capitalist for a long time. Basically a mix of crony capitalism mixed with totalitarian government.
California tries to be “socialistic” Canada and the UK.
California is a victim of income stagnation since 1979 during a period off mass immigration designed to suppress wages.
Statistically, Red states still consume a higher percentage of welfare due to the lack of economic activity. That is why Kia rushes to states like Alabama while VW loves Tennessee.
Blue states still contribute disproportionately more to our economy via Silicon Valley, Wall Street and commerce. Even bankrupt Michigan contributions a lot to Federal taxes.
They are much more controlled than you think.
Ever try the internet there?
I agree with the crony Capitalism mixed with Totalitarian Government. The Communist are still essentially in control and control the aspect of most people lives unless you own a large business. China wants the technology and money of capitalism but retain the control of Mao.
California is struggling under the load of illegal immigrants. Sine want them in the state for lower paying jobs and others want them there as future voters. Yes the Democratic party has worked hard in many areas to make it legal for illegals to vote.
The reality is most of your democratic cities and states are all in financial crisis. You can not offer to pay for everything and everyone with out going bust. They hold the highest taxes and generally have the greatest issues. Just look around. Even now the crime and murder rates have climbed in NYC, Chicago and LA to rates not seen in years. NYC is off the tracks now with their new mayor.
The truth on why automakers go south is this. The people down there reject Unions. Also they tend to be better workers and have less drama than people who live in more liberal areas.
The only reason blue state have any contribution is the pockets like you pointed out and not the majority as it is in most areas away from Salt Water.
I have had to deal with vendor after Vendor leaving California due to the taxes and the unfriendly business climate. California will default before long even with Silicon valley. If times ever become tough on the Valley they will relocate too and most likely Texas like everyone else.
As you will find most states are Red if you cut out the Metro areas and most of these Metro areas are in financial crisis. The rest of the state has to bail out these cities way too often. NY, MI, PA, IL, OH all are conservative in most areas outside the large cities.
California is one large earthquake from making Katrina look like a spring shower. If they have mass destruction to one of the large cities the real question will be how many died in the quake vs., murdered or die from starvation. If they just lost the power grid for a month they had better have a lot of body bags.
I get the feeling that you get your information and form opinions from watching Fox News and quacks like Alex Jones.
I’ve lived in both rural areas and cities, NYC now, and gotta say that people are about the same everywhere. Sure, cities and small towns have different problems, but you make urban America look like some war zone figment of Glenn Beck’s imagination. As for the fiscal problems found in cities, most are the result of promises made before NAFTA and outsourcing sucked our jobs away.
How do you figure red staters are harder workers? On account of them working for less money and refusing union protections?
Southern states were late to industrialized, but don’t mistake fear of joblessness and it being common knowledge that companies only cross Mason-Dixon to dodge unionization for a strong work ethic. (Sure, a few die hard brainwashed Reaganites exist but you should read Gerry Meyers book “Why Do People Vote Against Thier Own Self – Interests” for insights on this.
You really should stop blindly hating cities and check one out. You won’t need a body bag. No one will hurt you. You should experience one of America’s engines of growth.
John, I’m not anti-trade but am very much against unfair trade practices, and, while we’re on the topic, the immoral labor practices that have transformed China into the workshop of the world.
It’s the role of our government to block trade agreements that are environmentally harmful (Chinese air quality and the global reach of toxins); inhuman; injurious to the American worker who can’t compete on wages. The German government does this and lacks a rust belt trade deficit.
You and Scott both seem locked in the mindset that globalization of trade is somehow a corporate right and that eternal (which it’s not given Chinese extra territorial claims and the rising rising military we’ve helped them buy & build.)
I like GM because I, too, am sentimental about brands but also because GM pays it’s US workers a premium. Importing from China will long term lead to over-capacity and financial losses as was the case when Opel pushed East in search of cheap labor and ended up with 55 percent utilization of it’s Spanish plant during the hight of the downturn. GME is still loosing money because of the 1990s cheap labor orgy leading to today’s overcapacity.
GM sells few vehicles on the coasts. Made in China Buicks will sell weakly in America’s heartland where the Big 3 still hold dominance. Buicks built in Europe will always be well received, though, due to similar labor practices.
As for the JCP disaster, management failed to understand that a 100+ chain can’t shift it’s customer base overnight. Soccer moms want coupons; sophisticated shoppers considered JCP a bad joke: I really hope GM understands it’s customers better than Penney’s did.
John I might point out that China is far from slave labor. Low wages yes but not entirely true that they are slaves there. I am sure it happens various places but they do many things differently there.
One area I know of the companies provide dorms to live in as many of the people were farmers who moved to the region and can not afford homes. They are given places to live and are fed by the company. Because skilled labor is in demand the cafeterias compete for workers for each company as many workers will change companies because one will offer better sleeping accommodations and or food.
I am not saying they are ideal conditions but they are not locked in to a place and never let to go. Many people there are working to survive and perks like this are used to gain enough workers to make a product. Some plants have closed as the workers move on. It is very transit.
Also the companies and quality is mixed. From one brake supplier I deal with he said they had to make rotors there to keep the price of their kits to where people would buy them. He said the rotors are as good as anything we had here when they are right. When they get things wrong he told me everyone speaks English when you order but if things go wrong no one speaks English. They get burned from time to time.
I know one distributor factory that makes many OE systems for everyone. The owners keep American people on staff that live there to make sure the deals go as they should and that the parts are made to spec. The Chinese could not get it right with out the guidance.
While things are cheaper it is not always easier to deal from there. This is not counting the many other issues that crop up.
Add into this things like the explosion there. Someone is not telling the whole story as that was not just something in storage. they either screwed up with something or someone blew up something that should not have been there. VW lost a ton of cars and Toyota has lost a plant for now.
I really expect if the economics get worse I ponder how long till the people will revolt. They have had a taste of western life and they want it all. I fear many will die if they do and I can not be sure they can pull it off.
By the way India is nearly as great in Auto Parts as China now. Many of our parts come from there now. As for your other choices they are small island nations with little to offer other than labor, Greece can not even pay attention now and the people there are living off the government and they are having difficulty getting them to go to work.
Greece would love jobs. Unfortunately, they are an underdeveloped region much like Portugal.
Where do you get your news? If you really believe that the Greek economic crisis is the result of laziness (as opposed to a continental depression and the Euro being too strong a currency for such a economically depressed region) then it’s time to drop the Faux News.
We leased an Encore also while picking a used Verano 2.0T. The car was a hoot and quick enough with ecu tune. But it was small for DINKS and two dogs and would to see a 2.0T in one. The then fiance had no interest in learning a stick shift so j traded on used 2013 ATS AWD to commute with.
I would have loved to get a 2.0t LaCrosse with AWD or a XTS 2.0t as I like the driving dynamics of a car as opposed to a cuv, but obviously none are sold in the states.
My wife likes her 2 4 Terrain and do wish it had the 2.0t so when the Envision Premium 2.0t came about only for 2016 it peaked my interest for a cuv again. It was slightly smaller than the Terrain bit bigger than an Encore and I ncluded 2.0t and awd.
The deals for new/used 2016 Envision Prem can get close to $14,000 off MSRP and low miles. It didn’t pay to lease a 2017 the deals on 2016 were so good
I did picked up a XTS Vsport and find the materials and finish as good as the Cadillac
Personally, I believe GM is using negotiating tactics with the Envision to keep costs in tact. I see no reason they’d build that in China as it will share many components with the Theta replacements coming out in the next year or two.
Joe you are on the right track here. China is a negotiating tool to work a fair contract and competitive contract with the UAW or even the CAW.
With no competition the Unions will play hard ball and not negotiate a fair deal to either.
GM has done this with in country plants and now they can do it internationally. They can offer a deal that is fair and profitable to both parties and China is the leverage to make this deal.
Companies are in business to make money not just employee people. Employment is a side effect of business not the prime objective. People tend to forget that.
We should ALL be opposed to the idea of a Chinese built Envision, and boycott GM if they do it! My general rule for buying clothing is that it can be made anywhere BUT China. I do have a silk shirt that was made in China, and I don’t feel great about, but I’m not trusting my life to it. Would you trust your life to a Chinese built automobile? How about your wife and kids or parents? I would NOT. They can’t even build toys right, remember the lead paint issues with the Disney CARS “Sarge” a few years ago? Go ahead and build it in Canada, Germany or Australia, just not China.
Watch I bet Ingersoll Canada gets the Envision. Just a hunch here.
Aren’t the Chinese workers building Buicks also GM employees? So the issue is that GM in China is not a UAW shop?
No UAW in China. No UAW outside America. CAW in Canada.
GM also only owns 49% of the operation in China. No foreign company can be a majority owner there.
I change my pick from Ingersoll to Oshawa getting the line. Looks like they are moving things for Chevy already.
China forbids real unions and would jail or murder UAW organizers. This is why the US should be restricting Chinese trade.
General Motors the profitable quality company it is today, UAW members are disappointed with the tone-deaf speculation that the Envision would be imported from China,” said Cindy Estrada, vice president of the UAW General Motors department. Already a subscriber?