General Motors Company, stated that it is planning to export over $900 million in parts and vehicles to China under a two year contract agreement signed with its main joint venture, Shanghai GM.
GM said in a release over the weekend that the agreement was amongst the investment trade deals signed in connection with the Chinese President Hu Jinato's visit to the United States.
An estimate worth of $400 million of Genuine GM Parts and components will be exported under the new agreement.
This decision to export parts over to China has been a never ending dispute between China and the US in order to accomodate to the steadily sinking economy. However does this mean that GM will also be moving its vehicle production facilities to China in order to attribute from the benefits for having a lower labor cost.
Some may blelieve that GM is doing this in order to save them selves from the down fall, however it can be claimed that like other countries such as Australia, GM has already made their mark on foreign ground territories and it would be in no time till GM establishes its reaches globally into third world countries. Lowering the amount spent on production of the vehicle will greatly benefit GM's goal of mass producing vehicles as lower prices. However this will indefintely cause a even more dramatic strain on the GDP of America. Once a main produced group of vehicles are now being classified as a import, this imposed plan may allow GM to lower its cost however in the long run will decrease the amount of sales.