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At American icon that now made in China General Motors spending one point three billion dollars to start producing cadillacs -- new jobs in Shanghai.
This after getting fifty billion bailout bucks from US taxpayers -- GM.
Saying it wants to stay competitive in China's growing luxury vehicle market but critics say.
Our bailout dollars were used to rev up our American jobs not jobs in -- so lives right.
Hi everybody I'm David has been welcome to Forbes on FOX let's go into focus is let's Carl Mark -- on girl Elizabeth MacDonald bill ball what.
And might go -- you back your fired up about I -- Listen I'm not an anti free trade luddite and neither you -- what we're talking about it's a politicized bail out.
In the what's happening here is -- -- China gets a job so we're stuck with -- -- -- very pay for vanity projects like the Chevy Volt and no jobs here.
I'm -- for GM building -- China I promise that.
This is a political bail out there were not allowed to restructure and get Toyota or Korean company to -- GM and have been a bankruptcy.
And make it even healthier so they could pay back.
I mean to avoid having to do a bailout with -- -- by the way -- still owes us twenty billion dollars.
We're word they're reluctant to holders of of GM's stock which is not -- its original price our -- guard guard the disproportionate Aliyev the spending is is what bothers a lot of people.
They're spending eleven billion dollars in China by 2016.
And here's where -- -- said -- Wall Street Journal GM has invested only eight point five billion.
In US operation since its bankruptcy and since 2005 the number of workers and employees here in North America -- actually fallen.
The bailout was for American jobs are Chinese jobs.
I share your outrage about the bailout but we have to look forward the Chinese luxury car market is the largest in the world believe it or not.
And it's only getting bigger the Cadillac Escalade -- -- SUV is the highest profit margin personal vehicle that.
General Motors -- so to sell the highest profit margin product into the largest luxury car market.
Is an opportunity for General Motors that cannot be passed up it's and everyone's interest shareholders employees the US government tax payers.
For General Motors to be successful -- and this helps them be success and.
-- it is absolutely true that that the luxury car market is growing in trying to so that is one aspect of of their move their decision but should -- US subsidized company.
Be paying for Chinese jobs will I think suddenly this is just the opening chapter in what is a grand plot.
To move all of its manufacturing some day to low wage countries and it's a shame.
Given -- a lot of other US manufacturers are going the other way they're bringing jobs back to the US to take advantage of low energy prices better automation and proximity to our markets GMC thing going the other -- And and it might as saying it's its China taking advantage of the US taxpayer at about having you know there may -- be sense in in investing in China.
But it's our money investing in Chinese jobs it should be Americans.
Updated -- -- or bad profits are good if GM it's going to be more profitable by building factories in China.
That's where they should build and it will attract more capital will help them be more profitable in the long run it will help them hire more people.
This is a good thing if it's successful in terms of increasing profits -- American taxpayers subsidizing Chinese -- I can't get over that I I am just amazed that some of my friends here on the panel are not taking -- usual position of what's best for the shareholders.
Is the best thing to do it it's it's stunning to me luck.
To -- -- don't we -- -- shareholders and taxpayers -- -- -- -- literally of GM were a small part of that and from what I understand we may have in the past two weeks got rid of the restaurant but -- -- I didn't know I'm not certain he acts as but let me say this I mean to the extent that -- -- not making cars over there.
To export to the US to the extent that it's going to lower their cost of manufacture this out in China.
I cannot kind of understand -- I also understand that you do business in China you often have to partner up.
With the Chinese company now if my friend bill is correct well and we see them start to them manufacture there.
To ship cars back to US you're gonna find -- juniors and I -- -- Here's the deal they're not growing as Jim does not growing as fast as -- diet or -- -- or even Volkswagen because they haven't really flexible labor force.
They're in a lot of nonunion I get it the problem is this was a highly politicized -- President Obama and -- that during the debates Mitt Romney if we -- -- government governor -- me.
-- -- we be buying cars from China instead of creating jobs here -- Jan.
And then selling car inspected cited that can work out and you don't hear them hear anything of the White House -- would GM is doing I'm all for paying back the taxpayer.
I'm all for GM being profitable I support them go to China we have to keep in mind what the president is saying with stimulus to create jobs and GM to create.
Well -- to create an Irish -- we're also hearing about China now buying up all of these failed -- solar companies and and electric battery operators like 8123.
That the Chinese are but it's and again US taxpayers are being used sort of as the seed corn.
For Chinese jobs and Chinese dodge for doors.
I think you any Mac guy with all due respect are falling into the trap of the sunk costs fallacy you're looking back merger outraged here rightly outraged about the bailout.
You simply have to look forward BMW sold 300000 luxury cars in China last year -- sold 400.
Candidates and -- we certainly -- -- on this is.
Please profit opera mini -- I don't know why you're so upset well him -- I don't I will tell you why let's start with the ladies you're treating the twenty billion that taxpayers are still -- from GM like a rounding -- just pull pull it let's close scoot down the bench.
I have not I had this way to -- And is now and I'm probably when you're missing my point you're clearly missing my point where I think don't ever do this again do not every act -- taxpayer money to go through the basically people rich I would I would emphasize that fact.
They are looking ahead to.
Are clearly some of these green energy projects that have gone bust.
Are and they're more of them coming on line all the time.
They're they're buying them up the Chinese are -- -- -- -- -- as we don't want that to happen again do you.
I do not and I'm not arguing that point at all I'm saying the best thing for all concerned shareholders taxpayers.
Employees in the United States is for GM to become.
Helpfully profitable and there's profit to be made in selling luxury cars in China.
Can't hold out a second there's another point here and -- -- go to you on this child that has a history of reverse engineering that is stealing our ideas.
Buying or our products or or working on some kind of partnership with the US companies.
And then reverse engineering the products.
And getting rid of that the patents in the copyrights and coming out -- or are you concerned that GM may be falling into that reverse engineering track.
I think intellectual property is getting more respect in China as they become creators have been an intellectual property we have to be wary about trust the Chinese you don't think they're going to do it when I -- -- -- -- -- -- although -- -- -- -- -- I think -- -- -- some things -- No I think that the good does a good side to this this may be so bad could have -- poison taxpayers in the United States against the next -- Go ahead and listen I have personally been a victim Chinese -- not in -- so you know we're -- -- you know what you're talking -- but I do have to stand up for bid for the bail out here look.
I know it hurts I know you guys don't like it but I also know so many jobs were saved as a result we -- you -- -- I -- that not only read about a fan now we've built up failed management we could have even more John about that number around.
Workers told the number of workers at GM employs -- North America has fallen.
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