Oct 8, 2007
Will GM and Ford and Chrysler go overseas? Sure, they have. But, as is true everywhere, auto companies go overseas to build cars for the markets in those countries. Ford builds cars in Brazil, for the Brazilian market. In China, for the Chinese market. And those markets are small. Plus, as the Wall Street Journal said on July 31, “Overseas profit margins tend to be razor thin, despite low production costs.”
The fact is that the biggest, most profitable market for vehicle sales, is in the United States. Why have Japanese companies come here? Why are German companies building plants here? Because here is where the money is.
Are companies like General Motors so foolish as to turn their back on a market of 16 million vehicles per year for up to 10 or 15 thousand dollars in profits each? Not unless they are suicidal – or lying to us about it.
We vote for the latter.