Today's Coming Crisis Movie

Saturday, September 24, 2011

GM expansion in China a threat to U.S. jobs? (Aren't you glad you bailed them out?)

Two years after it was saved by a bailout from Washington, General Motors is trumpeting its latest investments in China.

As CBS News business and economics correspondent Rebecca Jarvis reported from Shanghai, American cars are more popular than ever in China, and U.S. automakers sell more cars there than anywhere else in the world. And while that's good news for American car companies, it makes many question what it will mean for American jobs.

If you were to visit General Motors in Shanghai, you'd find a lot of what you would in Detroit

The plant, says David Gibbons, executive director of manufacturing for GM in Shanghai, is "very similar. The processes are the same, the systems are the same, the quality systems are the same. Really, the only difference is the employees."

With its Chinese partner, Shanghai Automotive Industrial Corp., GM manufactures Buicks, Chevys and Cadillacs in China -- for the Chinese market -- and employs more than 13,000 people throughout the country.

That number is set to grow, thanks to a just-announced deal to develop and build, with SAIC, the next generation of electric cars in China. more