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GM: Taking tax dollars and moving to China?

Three years ago the government put billions of tax dollars into General Motors and Chrysler to keep them from going under. GM has paid back half of the $50 billion it received but now a viral video is attacking GM. It claims the company, rescued by taxpayers, is moving jobs overseas.

There's no doubt General Motors is working hard in China but some argue that's not a good thing for workers and customers in the U.S.

Blogger Vince Wade going on the attack. His Youtube video is gaining attention. Nearly 200,000 people have viewed it so far. He accuses General Motors of  being "China Motors," questioning the bailout and what that meant for taxpayers.

Youtube video: Since the bailout, 70 percent of the cars and trucks have been built someplace outside the U.S., more and more that place is China.

Auto analyst Mike Wall of IHS, an automotive forecasting firm, says vehicle sales in China will double in 10 years, making it the biggest car market in the world. But disagrees jobs are going overseas.

Mike Wall: It isn't building cars in China and exporting them to the US. It's not happening. They're building vehicles here, for purchase here, expanding here, are they expanding at the
same clip they are in China.

In a statement, a GM spokeswoman says, "GM did not use U.S. government bailout money to build its manufacturing footprint in China. Since the bankruptcy, GM has announced investments at 30 U.S. facilities totaling more than 7.1 billion dollars."

But if China becomes the crown jewel in the GM universe, U.S. taxpayers may wonder where that leaves the U.S.

Rick Mansmann/Chevy owner: We're losing jobs here, outsourcing jobs, there's no doubt.

GM says it has a global policy of "build where they sell." They believe it lowers the cost for the customer..

Bryan Conklin: It's funny my Camaro was made in Canada.

Bryan Conklin says he understands globalization is a realty whether people like it or not.

Bryan Conklin: Ultimately you have to go where the cost of production is cheapest. So if Canada is where it was at for the Camaro, then so be it.

Nearly 300,000 people work for GM across the world. Only About a third of those jobs are in the U.S.
GM: Taking tax dollars and moving to China?

Saturday, August 3 2013, 06:37 PM EDT


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