In today's New York Times is a story that I would bet has a lot of significance for our macro future. "Daimler and Chery of China Planning Subcompacts for U.S.," "DaimlerChrysler has reached a broad understanding with Chery Automobile of China to set up a joint venture to export cars to the United States for the first time.” The Wall Street Journal reports that General Motors and Nissan-Renault have terminated talks about a possible alliance.
It wasn’t so long ago that Chrysler (now part of Daimler) was an “American” company, and General Motors was the largest employer in the United States. What will be left of Detroit?
2 comments:
Macromind. You taught me that trade leads to better life. I am old enough to remember my friends laughing at Japanese cars called the Honda Civic (1980).
Later when Honda was a success everyone was afraid of the Japanese. I remember Bush senior going to Japan to save auto jobs and throwing up on the Japanese prime minister. Today the Honda Civic is being built in the midwest and creating jobs.
I see history repeating itself. Instead of Japanese now it is the Chinese. First we will laugh at the Chinese cars later we will worry about the chinese car and eventually will work for them.
I didn't teach that trade leads to a better life. I teach that the benefits of trade exceed the costs. That doesn't mean everyone has a better life. Haven't most successful global corporations largely shed their national identities? Thanks as always, Javaman. I'll buy you a beer for responding to my posts.
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