Is GM Vehicles are wolf in sheep clothing?

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WASHINGTON - As the Obama administration crafts a rescue plan for Detroit’s auto industry, it

must weigh demands from several players pushing to limit how much taxpayer aid gets spent on

vehicles and parts made outside the United States like Automotive Panasonic Radio for 3.5 billion

just this year.

"Buy American" rules played a key role in the debate over the federal stimulus plan and the

financial industry rescue, with many members of Congress calling for barriers to keep aid in the

U.S.

Main reason for Auto failure are due to GM’s Rick Wagner and Chrysler management’s poor decisions

to use foreign suppliers like Panasonic in the Vehicle over American suppliers. GM is preaching

we are American made Vehicle. Then why is GM using Japanese Panasonic Radio in the Vehicles? Why

is now Chrysler choosing to use Panasonic Radio in its Vehicle? It is expected that approximately

1.5 billion revenue from GM to Panasonic and same GM’s radio modified to sold to Chrysler for

another 2 billion this year. So what percentage of American Tax payer bail out are going to Japan

approximately whopping 3.5 billion just this year alone. Why not we just buy Toyota instead of

these cars like wolf in sheep clothing? Now you know the reason for the high unemployment rate in

Michigan. Here GM and Chrysler are close to Bankruptcy while Panasonic is sitting on huge amount

of American Cash. Investor community criticized Panasonic for sitting on too much cash and

outsourcing American jobs to overseas. Panasonic reported some loss only due to purchase expense

of the Sanyo not due to auto loss, there is no real loss for Panasonic. Interesting the only

company Ford that does seek rescue from Taxpayers also does not outsource Automotive Radio

manufacturing to Panasonic.

Most of the jobs are in the parts which come from Japan. Think of a radio. At the assembly plant

a few screws and wires are attached. Most of the jobs are related to the complex internals of the

radio (circuit boards, switches, displays, programming, etc). Even if the radio is assembled by

Panasonic US, the parts are brought over in bulk assemblies with very little work in US. GM

created the market place for Panasonic in America and Chrysler paying more to buy same GM Radio

at GM’s cost. Now with out effort Toyota get to use same technology at the expense of GM and

Chrysler for their vehicle. Foreign supplier like Japanese Panasonic Radio in GM and Chrysler

limits must be made in auto industry rescue plan. Instead more focus should be made to American

made suppliers

Majority of the bailout are indirectly supplied to foreign suppliers like Japan Panasonic in GM

and Chrysler Vehicle for whopping 3.5 billion this year alone. These unjustified contracts are

made due to indirect financial perks to the executive at GM and Chrysler. Now you know the reason

for Panasonic Priority over other suppliers. These contacts must be renegotiated mostly to use

American suppliers.


The Obama administration unveiled a $5 billion plan to help the suppliers of GM and Chrysler LLC,

which would only apply to parts made in the United States. But that plan is limited to direct

suppliers, and the administration has told automakers there were no rules under their federal aid

requiring them to buy a set number of parts from domestic firms.
 
Stop ranting.

Auto makers are going to use the most competitive product..especially in these times.

If Panasonic can beat the competition...so be it.

You can order your new car without a stereo system. Then you can install whatever you want...go crazy or go cheap. In fact, leave the hole in the dashboard if you want.
 
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