GM Drives Passenger Car Production Overseas

There's no wonder that automakers around the world are seeking ways to reduce costs in every single area but, in GM's case, things are evolving in desperate way. As if the so-many cost-cutting measures weren't enough, General Motors is now planning to transfer new car production from its domestic facilities to those based overseas. The reason? Building cars elsewhere could prove to be much more affordable, especially for an ailing manufacturer which is now fighting for life.

At this time, GM is building 15 percent of the cars sold in the United States in non-US plants and, according to MSNBC, the American giant is now targeting a shocking 23 percent by the next five years. Destinations are not yet revealed, but European and Chinese production facilities are the most likely to benefit from such a decision, as reduced production costs and cheaper labor have always been attractive for investors.

Obviously, this is far from being good news, especially for the United States who are currently injecting money in GM to help it continue operations. As a direct result of such a move, the US auto sector crisis could deepen even more, with more job cuts and plant closures likely to occur once the manufacturer moves production elsewhere. Now, there's one major question: is the US government willing to help GM anyway, even if the company plans transfer operations overseas?

Tough question, we would say, especially if taking into account that a potential bankruptcy would mean even more job loses for the United States. So, what would be the best choice? We can't tell for now but General Motor is currently facing a deadline on May 30 to decide whether it could finance its operations or go under protection of Chapter 11, just like its "old pal" Chrysler.