Bailed-Out GM to Take More Jobs Overseas

Cars sold here, built elsewhere to double amid taxpayer support
By Matt Cantor,  Newser User
Posted May 8, 2009 6:37 AM CDT
In this April 21, 2009 file photo, General Motors world headquarters is shown in Detroit.    (AP Photo/Paul Sancya)
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(Newser) – General Motors is set to boost its overseas operations, nearly doubling the number of cars it builds outside the US but sells here—even though billions of government dollars are supporting the firm and its restructuring plans, the Washington Post reports. This puts the Obama administration in a tight position: Does it push GM to keep jobs in the US, thus increasing labor costs, or does it allow the firm to send jobs abroad—a potential political nightmare?

The dilemma “raises fundamental questions about the purpose of bailing out these big companies,” says former labor secretary Robert Reich. “If GM is going to do more of its production overseas, then why exactly are we saving GM?” The percentage of cars sold domestically and built in Mexico, China, and South Korea is set to rise from 15% to 23% by 2014, according to a company report shown to lawmakers.