After Taxpayer Bailout, General Motors Imports This Popular Line Manufactured in China
The financial crisis of 2007-2008, considered by many economists to be the worst to face the nation since the Great Depression of the 1930s, triggered government intervention as industries floundered and major companies headed toward collapse.
As the Bush administration handed-off to in-coming President Barack Obama, the federal government agreed to an $80 billion bailout of General Motors and Chrysler, with $50 billion going to GM.
Now, seven years later, as the government announced a loss of $11.2 billion on the deal, GM made an announcement of its own – its new Buick, the Envision, will make its debut this summer.
The only problem is that the car is built exclusively in… China.
The model, which GM describes as “a luxury crossover” has been on the market in China since 2014.
GM has a website devoted to the Envision with details on the interior and exterior design, technology and performance – everything but the price – but fails to mention that the car is manufactured exclusively in China.
The announcement comes at a time when presidential hopefuls are addressing the issue of American companies taking manufacturing out of the country resulting in the loss of predominantly blue-collar jobs.
Republican candidate Donald Trump cites air-conditioning company, Carrier, which received a $5.1 million stimulus payment from the Obama administration, moving its facilities from Indianapolis to Monterey, Mexico, as an example of current tax laws and regulations making it more profitable to operate overseas.
He also notes that Ford has moved production to Mexico, although Ford did not benefit from the 2008-09 bailout.
The American Jobs Alliance issued a sharp statement criticizing GM’s decision for “throwing Americans under the wheels after taxpayers had been told the bailout would save American jobs,” and Americans for Limited Government joined in, calling the move, “a slap in the face of American workers and taxpayers,” adding, “and people wonder why blue-collar workers support Trump?”