Nader warns against aiding outsourced GM

May 28, 2009 at 2:52 PM
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DETROIT, May 28 (UPI) -- U.S. consumer advocate Ralph Nader said taxpayer assistance for General Motors Corp. should not benefit its outsourced operations.

"Do we really want the United States of America to export its auto industry paid for by the taxpayer and unemployed workers to a dictatorship (in) a country like China?" Nader said, CNN reported Thursday.

As GM's North American and European operations struggle to survive the recession, the company's operation in China has prospered.

GM is currently the third largest automaker in China, which is now the world's largest auto market. However, the company has accepted $19.4 billion in emergency loans from the U.S. government and is on the verge of filing for bankruptcy.

President and Managing Director of GM China Kevin Wale said the business in China "is run as separate joint-ventures … in partnership with Shanghai Automotive Industry Corp."

Michael Dunne, an industry analyst at J.D. Power and Associates China said GM in China would remain "insulated from the bankruptcy back home."

The concern, however, has found a voice on Capital Hill. "That cannot be a part of their restructuring of this company. Their business plan cannot include more outsourcing of jobs while taking taxpayer money," said Sen. Sherrod Brown, D-Ohio.

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