Made In The U.S.A.

Consequences

In Adventures on April 2, 2009 at 12:03 am

One of the things that happens when you don’t buy American is that the American maker of whatever it is you’re not buying gets into financial trouble. That’s not to say it’s your fault. Look at the auto industry; American automobiles, though lately much improved (or so they say) for years were gas-guzzling, underperforming, poorly styled imitations of their foreign competition. No wonder we weren’t buying what America was selling.

But then what happens when you don’t buy American and the American maker of whatever it is you’re not buying gets in financial trouble is that they go looking for a buyer for the whole shebang. That buyer is probably overseas, which is why they’ve got the dollars (or yen or dinero or rupees) to buy the thing. Then that new owner makes it that much harder for you and me to buy American by more fully consolidating the manufacturing to parts of the world where it’s cheaper and more efficient, and the process repeats. And soon nothing is MITUSA.

This just happened to American car part maker Delphi–one of GM’s largest suppliers. When GM suffers, Delphi suffers. And Delphi has suffered enough that the company has just sold a big old chunk of its business to a Chinese conglomerate called BeijingWest.

BeijingWest is a joint venture between a Chinese auto part manufacturer, an undisclosed second Chinese firm, and the municipal government of Beijing. So, in once sense, this American auto parts manufacturer is being nationalized. Just not by our nation.

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    1. I own a 1992 Mercury Grand Marquis that was made in Canada in 1991. I learned this when I needed a new starter. It seems to me that the US car companies wave the US flag when they are selling their stuff but when they are buying it is a different story.

      When the US car companies got their loans from the taxpayers, some congress members suggested they buy steel from American Steel makers. The auto makers replied, “That would be protectionism!” and “We must recognize that the economy is global!”

      Joint ventures also abound. The Global Engine Manufacturing Alliance factory in Dundee, Michigan is a joint venture between Chrysler, Mitsubishi and Hyundai, produces four cylinder engines used by all three automakers.

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