Discuss Detroit » Archives - Beginning January 2007 » DCX Labor Reps Almost Blocked Chery Deal « Previous Next »
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Cambrian
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Username: Cambrian

Post Number: 731
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 3:12 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The scum bag execs and shareholders still got thier way, but it was not a resounding victory at least. Maybe we'll win the next one.

From Autobeat Daily:


DCX LABOR REPS ALMOST BLOCKED CHERY DEAL.
Opposition from labor representatives on DaimlerChrysler AG’s supervisory board nearly quashed Chrysler Group’s plans to buy Chinese-made subcompact cars from China’s Chery Automobile Co., reports Handelsblatt.
Erich Klemm, head of DCX’s works council, tells the German newspaper the showdown came at the Feb. 13 meeting of the supervisory board, which is divided evenly between labor and shareholder representatives. With the vote deadlocked, Chairman Hilmar Kopper cast the deciding vote in favor of the framework agreement, says Klemm, who is a board member. Under German corporate
rules, the chairman’s vote counts twice if there is a tie. Labor leaders contend that DCX shouldn’t be opening the door to Chinese carmakers who want access to developed
markets. They also object to the company’s elimination of some U.S. jobs while creating work at a rival automaker. Ron Gettelfinger, president of the United Autoworkers Union, also sits on the DCX board. Chrysler, which plans to sell the Chery-built vehicles under its own brands, says it could not make the low-cost cars profitably in North America.
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Livernoisyard
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Username: Livernoisyard

Post Number: 2709
Registered: 10-2004
Posted on Wednesday, March 07, 2007 - 3:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

The scum bag execs and shareholders still got thier way, but it was not a resounding victory at least. Maybe we'll win the next one.


Just another reason not to buy a UAW-built vehicle.

You can almost feel their disgruntled workers perhaps taking out their frustrations on the vehicles built with their slave labor...
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Cambrian
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Username: Cambrian

Post Number: 732
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 3:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

People that buy these cars will be unsatisfied with them. I have no reason to believe this Chery deal will be any different then his last attempt which was Yugo. The only reason these cars are not at dealers right now is because the quality of the first builds are so piss poor. A shoddy chinese product could be just the shot in the arm our US labor movement needs to revive a "buy american" campaign.
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Ndavies
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Username: Ndavies

Post Number: 2474
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 3:42 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well their choice is either to build the car in China or not sell a vehicle in that segment. So your company either makes money from building the car in China or you cede that market to your competitors. None of whom make that size car in the NAFTA region. They are all imported. No one can make that size car profitably in North America.

The board made the right choice. The only choice if they want to stay in business.
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_sj_
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Username: _sj_

Post Number: 1747
Registered: 12-2003
Posted on Wednesday, March 07, 2007 - 3:44 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Labor leaders contend that DCX shouldn’t be opening the door to Chinese carmakers who want access to developed
markets



Isn't that a violation of international law.

Heaven forbid people on fixed income or low income should be forced to overpay out of their price range.
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Ndavies
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Username: Ndavies

Post Number: 2475
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 3:53 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Cambrian, What does the DCX-Chery deal have to do with the Yugo? Yugo was brought in by Malcolm Bricklin, He has nothing to do with the deal between DCX and Chery. He was trying to bring Chery designed cars to the US under their own name. That deal has collapsed.

This is a completely different deal. This is a Chrysler designed vehicle built in a Chery plant.

You're confusing your import deals.
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Goat
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Username: Goat

Post Number: 9270
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 3:57 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Do some of you actually believe that Chery is going to make the car and place a Chrysler/Dodge nameplate on it without Chrylser/Dodge having any input or control over the operation?
The same thing was said about the PT Cruiser (or any vehicle assembled in Mexico)and it sold o.k. without massive problems.
The problem can possible arrive when the Chinese start to make quality products on their own which will give us all a run for our money.
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Cambrian
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Username: Cambrian

Post Number: 734
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 3:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

No, these are the same man. I just can't recall the specifics. The person who brought Yugo over, Bricklin you say, was also the initial deep pocket investor to get Chery going.
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Douglasm
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Username: Douglasm

Post Number: 781
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:04 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Ndavies....
....does DCX have a financial stake in Chery in the same way GM has in Shanghai/GM and/ or Daewoo?
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Ndavies
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Username: Ndavies

Post Number: 2476
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:06 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Cambrian you're very wrong. Malcolm Bricklin has nothing to do with the DCX - Chery deal.

Malcolm Bricklin is just a car salesman. He made his name by bringing Subaru to the US. He sold that operation and tried to repeat that success with Yugo. That failed. The Chery deal was to be his third attempt at this game.

Chery Is a chinese company started by the Chinese government. Bricklin was just a way for them to get into the country. They have since found a better way.

Try this link
http://en.wikipedia.org/wiki/C hery

with this quote.
quote:

In 2005, Chery was upgraded to ISO/TS 16949:2002 production quality, the highest and strictest quality control system in the global auto industry. They also began working with Malcolm Bricklin's company, Visionary Vehicles, hoping to be one of the first Chinese automobiles sold in the United States. The plan was to import five new car lines. Bricklin planned to have 250 dealers in the United States selling 250,000 cars a year by 2007. However, after 2 delays and various disagreements over finances and car design, the deal broke down. Instead, Chery is pursuing its own export plans and is designing a large array of cars for the American and European market and Chinese market.

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Cambrian
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Username: Cambrian

Post Number: 735
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 4:06 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Anyways.....I believe a person can go to Wal mart and buy a Chinese Made Coffee maker,or DVD player all day long that craps out on him after 6 months and he won't bitch much. However if his chinese car breaks down on him while he's trying to get to work, or is in the shop all the time costing him money that's quite a different story.
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56packman
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Username: 56packman

Post Number: 1083
Registered: 12-2005
Posted on Wednesday, March 07, 2007 - 4:08 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Hating the Chery deal is like hating your hot younger sister's first serious boyfriend because you think he's having sex with her. If it's not him, it's going to be someone else. Someone's gonna get it, it might as well be someone you like.
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Cambrian
Member
Username: Cambrian

Post Number: 736
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 4:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:
"In 2005, Chery was upgraded to ISO/TS 16949:2002 production quality, the highest and strictest quality control system in the global auto industry. design, the deal broke down. Instead, Chery is pursuing its own export plans and is designing a large array of cars for the American and European market and Chinese market."

That being said there was a story last week in Auto Beat that said the reason the deal got off track and is behind schedule are the quality issues with Chery's products.
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Ndavies
Member
Username: Ndavies

Post Number: 2477
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Douglasm, no, I don't believe they do. DCX does have other equity joint ventures with Chinese companies to build Jeep and Mercedes vehicles for sale in China.
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Ndavies
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Username: Ndavies

Post Number: 2478
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Once again, Cambrian that article applies only to Chery designed vehicles. The Vehicle Chery is building for Chrysler is a Chrysler design not a Chery design. The car will meet all of Chryslers quality and safety standards. This vehicle will be equal or superior in quality and safety to any of chrysler's other designs. And since the plant is not a chrysler plant they can actually demand much higher quality from their supplier than they could from a plant they owned.

The real problem is DCX will be teaching Chery how to meet the quality, safety and emission standards required by north american customers.
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Fury13
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Username: Fury13

Post Number: 1417
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:32 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

What's the difference between slapping a Chrysler name on a Chery and putting a Chevy badge on a Daewoo (Aveo)?
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Cambrian
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Username: Cambrian

Post Number: 737
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 4:33 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Isn't the Aveo a Suzuki made in London ON?
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Spacemonkey
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Username: Spacemonkey

Post Number: 165
Registered: 03-2006
Posted on Wednesday, March 07, 2007 - 4:36 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

HEMI engines are made in Mexico.
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Fury13
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Username: Fury13

Post Number: 1419
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The Aveo is a Korean Daewoo.

http://en.wikipedia.org/wiki/Daewoo_Gentra


(Message edited by Fury13 on March 07, 2007)
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Ndavies
Member
Username: Ndavies

Post Number: 2479
Registered: 10-2003
Posted on Wednesday, March 07, 2007 - 4:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Fury13, not much. Ford just announced it's importing and rebadging a Mazda for this same vehicle segment. The only minor difference is both Ford and GM own large equity stakes in their B segment suppliers, DCX doesn't.
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Cambrian
Member
Username: Cambrian

Post Number: 738
Registered: 08-2006
Posted on Wednesday, March 07, 2007 - 4:45 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

There are no parallels to having Japanese or Korean Cars sent here to having Chinese cars sent here. The Chinese government plays games with thier currency to keep it undervalued, this is why greedy american companies love it over there so much. Korea and Japan do not.

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