Jeep Shifting Production to China? - PeachParts Mercedes-Benz Forum

retmil46 · #1 10-26-2012, 01:50 PM

If there's any truth to this, and it goes public in a big way, BO might have to kiss Ohio - and the election - goodbye.

Jeep, an Obama favorite, looks to shift production to China | WashingtonExaminer.com

tbomachines · #2 10-26-2012, 01:56 PM

Couple points before the frothing mouths see this:

- Jeep was already in China and had plants there. They stopped in the late 2000s and are simply re-opening those plants for Jeep.
- They are talking about moving 100% of production for Asian markets there.

Quote:

Chrysler currently builds all Jeep SUV models at U.S. plants in Michigan, Illinois and Ohio. Manley referred to adding Jeep production sites rather than shifting output from North America to China.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20121021/OEM/310219965/chrysler-eyes-china-for-jeep-output

aklim · #3 10-26-2012, 02:16 PM

Quote:

Originally Posted by tbomachines

Couple points before the frothing mouths see this:

- Jeep was already in China and had plants there. They stopped in the late 2000s and are simply re-opening those plants for Jeep.
- They are talking about moving 100% of production for Asian markets there.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20121021/OEM/310219965/chrysler-eyes-china-for-jeep-output

Good point but do you believe that is going to be all that happens?

Quote:

Fiat SpA, majority owner of Chrysler Group LLC, plans to return Jeep output to China and may eventually assemble all Jeep models in the country, according to the head of both automakers' operations in the region.

tbomachines · #4 10-26-2012, 02:19 PM

Quote:

Originally Posted by aklim

Good point but do you believe that is going to be all that happens?

Maybe eventually but that's still speculation. I prefer to deal with what we have on hand. The OP's article editorializes heavily on how this will affect Obama and his picture taken in a Jeep plant, etc.

aklim · #5 10-26-2012, 02:31 PM

Quote:

Originally Posted by tbomachines

Maybe eventually but that's still speculation. I prefer to deal with what we have on hand. The OP's article editorializes heavily on how this will affect Obama and his picture taken in a Jeep plant, etc.

Well, you can call it speculation and today, you'd be right. Tomorrow, I'll bet money that you would be proved wrong. The chinese are not interested in "wetting my beak" as is said in The Godfather. They want it all. Maybe not today but they have an eye on tomorrow.

Sure, you deal with what is on hand but if you don't look at the writing on the wall, tomorrow, you might be the one with the proverbial "pink slip" in your hand asking "WHY ME!!! Whoda thunk it!!". Face facts. The Chinese are the manufacturing masters today. You can talk about trying to be more efficient all day long but if it is cheaper to make it there, well, we head there. Look at where things are going and tell me if you think it isn't likely and that we can pull out of it at the last second and things are going to be hunky dory.

tbomachines · #6 10-26-2012, 02:35 PM

Quote:

Originally Posted by aklim

Well, you can call it speculation and today, you'd be right. Tomorrow, I'll bet money that you would be proved wrong. The chinese are not interested in "wetting my beak" as is said in The Godfather. They want it all. Maybe not today but they have an eye on tomorrow.

Sure, you deal with what is on hand but if you don't look at the writing on the wall, tomorrow, you might be the one with the proverbial "pink slip" in your hand asking "WHY ME!!! Whoda thunk it!!". Face facts. The Chinese are the manufacturing masters today. You can talk about trying to be more efficient all day long but if it is cheaper to make it there, well, we head there. Look at where things are going and tell me if you think it isn't likely and that we can pull out of it at the last second and things are going to be hunky dory.

No I agree, but I think that it would take inside knowledge to know whether its worth shifting all the production over to China and shipping them back into the U.S. Certainly for Asian markets it makes perfect business sense to make them over there. I suspect that they will keep both open for a while and eventually move off entirely to China as well, but again I am not an insider so its just speculation based on my knowledge of the industry (which admittedly is not much). It makes business sense though. Shipping cars around the world isn't cheap, as evidenced by the numerous "foreign" companies having plants in the U.S. making U.S.-only models. Not much different than Jeep IMO.

Txjake · #7 10-31-2012, 09:29 AM

Quote:

Originally Posted by tbomachines

Couple points before the frothing mouths see this:

- Jeep was already in China and had plants there. They stopped in the late 2000s and are simply re-opening those plants for Jeep.
- They are talking about moving 100% of production for Asian markets there.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20121021/OEM/310219965/chrysler-eyes-china-for-jeep-output

"In a Bloomberg interview, Jeep's president said the automaker plans to restore Jeep production in China, suspended in 2009, and is considering making all Jeeps in China. "Fiat SpA, majority owner of Chrysler Group LLC, plans to return Jeep output to China and may eventually make all of its models in that country, according to the head of both automakers' operations in the region," reported the business wire service."

t walgamuth · #8 10-31-2012, 09:42 AM

I just tried to snopes it but came up empty.

This came up yesterday at lunch. I had not seen anything about it before so was at a disadvantage. I said I doubted it on the basis of it not being feasible.

I believe we are building buicks there are we not? Why is nobody saying we will be stopping production of them here?

My other observation is that we currently don't have any cars being imported from china to the us at the moment.

pj67coll · #9 10-31-2012, 10:28 AM

Difficult to believe there would be an economic case for building Jeeps in China for sale in the US given the PR fallout that would ensue. Still Fiat is not an American company so they might have a completely different outlook on it all.

- Peter.

aklim · #10 10-31-2012, 10:40 AM

Quote:

Originally Posted by pj67coll

Difficult to believe there would be an economic case for building Jeeps in China for sale in the US given the PR fallout that would ensue. Still Fiat is not an American company so they might have a completely different outlook on it all.

- Peter.

Why? We have a lot of imports because they are cheaper. Oh, sure, there will be a hue and cry for a bit but it too will die down and it will be business as usual. It's not a question of "if" but "when". Maybe not today or tomorrow or even next month but it will happen in our lifetimes. We just refuse to see that and want to keep beating that dead horse and hope it will come back to life for one more day.

aklim · #11 10-31-2012, 10:36 AM

Quote:

Originally Posted by t walgamuth

Why is nobody saying we will be stopping production of them here?

Perhaps because the Govt picked GM CEO and his subjects didn't make that comment?

Either way, the writing is on the wall already. More and more things are going there for manufacturing. We better learn to read the writing on the wall and find something else we can do before that time. Unfortunately, manufacturing is too comfortable for us and we still try to keep that Terry Schiavo alive although we know it is coming to and end.

Air&Road · #12 10-31-2012, 11:49 AM

Quote:

Originally Posted by aklim

Perhaps because the Govt picked GM CEO and his subjects didn't make that comment?

Either way, the writing is on the wall already. More and more things are going there for manufacturing. We better learn to read the writing on the wall and find something else we can do before that time. Unfortunately, manufacturing is too comfortable for us and we still try to keep that Terry Schiavo alive although we know it is coming to and end.

I agree with much of what you say on lots of issues, but you sort of seem like a one world fan and I'm not.

That said, unfortunately I think you are totally correct about manufacturing all but completely going away in this country.

I work for a very large automation company, but my office is inside a LARGE manufacturing plant. The production is way down and the company is a global one. I would like to think that the plant will stay open a few more years until I am ready to retire on my own terms, but the possibility definitely exists, that I will retire when they close the place rather than when I plan on it.

Like you, I don't know what will take the place of manufacturing in this country, but whatever it is had best be identified and stimulated.

Benz Fan · #13 10-31-2012, 10:55 AM

Quote:

Originally Posted by t walgamuth

I just tried to snopes it but came up empty.

This came up yesterday at lunch. I had not seen anything about it before so was at a disadvantage. I said I doubted it on the basis of it not being feasible.

I believe we are building buicks there are we not? Why is nobody saying we will be stopping production of them here?

My other observation is that we currently don't have any cars being imported from china to the us at the moment.

This is a two-year-old article, but it does indicate that Ford and GM are selling a car or two in China: Ford and GM Battle for Sales in China - Feature - Car and Driver

Benz Fan · #14 10-31-2012, 10:59 AM

Quote:

Originally Posted by Txjake

"In a Bloomberg interview, Jeep's president said the automaker plans to restore Jeep production in China, suspended in 2009, and is considering making all Jeeps in China. "Fiat SpA, majority owner of Chrysler Group LLC, plans to return Jeep output to China and may eventually make all of its models in that country, according to the head of both automakers' operations in the region," reported the business wire service."

DID YOU READ THE ACTUAL BLOOMBERG ARTICLE? TRY DOING SO.

http://www.bloomberg.com/news/2012-10-21/fiat-says-china-may-build-all-jeep-models-as-suv-demand-climbs.html

Dudesky · #15 10-31-2012, 11:48 AM

Quote:

Originally Posted by Benz Fan

DID YOU READ THE ACTUAL BLOOMBERG ARTICLE? TRY DOING SO.

Fiat Says Jeep Output May Return to China as Demand Rises - Bloomberg

Yes and they flip flop old Buddy.

“We’re reviewing the opportunities within existing capacity” as well as “should we be localizing the entire Jeep portfolio or some of the Jeep portfolio.”