Will GM Build Astra At New Mexican Plant?

[Perian]

Source: AN Daily Email

DETROIT -- General Motors will start construction on a new assembly plant in San Luis Potosi, Mexico, sometime in May.

GM will build compact and sub-compact vehicles at the new facility to be sold only in Mexico, says Carlos Gelista, director of public relations and government relations for GM Mexico.

The plant, which should be running sometime in 2008, will assemble about 30 vehicles per hour and employee about 1,800 people, Gelista says.

The cost to construct and equip the new plant will be between $600 million to $650 million. Part of that will be paid by the Mexican government, but Gelista declined to say how much.

[Perian]

Crazy Thought:

What if this new plant was for the Astra?

30 vph is about 2880 per week.

750 for Mexico, the rest sent to the US and Canada under Saturn Astra label???

Think about it -

GM had said no more Ion at Spring Hill, and Lordstown will fill its' capacity with the new G5...

So where do you source the Ion replacement from?

GM could start by importing the Astra here from Europe, and then go to a lower cost output in Mexico.

Just a thought.

[rata87]

"El día de hoy se presentó a los medios de comunicación el nuevo Astra Hatchback, un auto que con su diseño se anticipa a su gran desempeño."

The new Astra and Zafira are coming to mexico on summer, so this may be a possibility for saturn to import them. The range of prices of the astra are from 16720 dlls to 22720 dlls. The top of the line has a 200hp turbo ecotec, while the zafira gets the normal one of 150hp.

http://www.terra.com.mx/automovil/articulo/185889/
http://www.terra.com.mx/automovil/articulo/185895/

[Perian]

It's interesting that both models will be sold as Chevrolets.

[Bravada]

Opel models have been branded Chevrolets in Mexico for a long time now. GM Daewoo and American models that compete directly with Opel-derived Chevrolets are funnelled to Mexico through Pontiac (which results in severe cases of rebadgeosis like Pontiac G2 Matix).

[ZOOMY]

Originally Posted by Perian

Crazy Thought:

What if this new plant was for the Astra?

30 vph is about 2880 per week.

750 for Mexico, the rest sent to the US and Canada under Saturn Astra label???

Think about it -

GM had said no more Ion at Spring Hill, and Lordstown will fill its' capacity with the new G5...

So where do you source the Ion replacement from?

GM could start by importing the Astra here from Europe, and then go to a lower cost output in Mexico.

Just a thought.

Just what we need, more imported vehicles.

[DuSpinnst]

Originally Posted by ZOOMY

Just what we need, more imported vehicles.

Actually making cars in Mexico is a good thing. One it gives good jobs to Mexicans keeping them IN MEXICO. Two it allows GM to have lower wages versus Union Shops. This all translates into more PROFIT for GM.

Building GM cars in Mexico is outstanding.

[CRBoyd91]

Originally Posted by DuSpinnst

Actually making cars in Mexico is a good thing. One it gives good jobs to Mexicans keeping them IN MEXICO. Two it allows GM to have lower wages versus Union Shops. This all translates into more PROFIT for GM.

Building GM cars in Mexico is outstanding.

Yes, and we're not supporting communism by building them in China this way.

[Cortazzo]

Hey, to get the hottest compact car period in our market, i'd take it from mexico if that's what it took. But GM does have so much spare capacity here as well, Spring Hill is too modern a factory not to fill up again with new product. I wish the Astra was already on sale, I would have chosen that over my new tiburon in a heartbeat.

[gerardo_zg]

Originally Posted by DuSpinnst

Actually making cars in Mexico is a good thing. One it gives good jobs to Mexicans keeping them IN MEXICO. Two it allows GM to have lower wages versus Union Shops. This all translates into more PROFIT for GM.

Building GM cars in Mexico is outstanding.

It's a shame that it will only keep 1880 of millions here .

[toronado10]

Originally Posted by gerardo_zg

It's a shame that it will only keep 1880 of millions here .

Every little bit helps. And anyways, how many jobs have been given to Mexico by carmakers looking for lower cost? Quite a bit I suppose...

[GM-10]

Please...ohhh please send the Astra here!!! ((USA))

[steve333]

Originally Posted by DuSpinnst

Actually making cars in Mexico is a good thing. One it gives good jobs to Mexicans keeping them IN MEXICO. Two it allows GM to have lower wages versus Union Shops. This all translates into more PROFIT for GM.

Building GM cars in Mexico is outstanding.

Nothing keeps mexicans in mexico.

[asim]

Well it doesn't sounds like the US and Canada are getting much out of it...

[Perian]

Originally Posted by asim

Well it doesn't sounds like the US and Canada are getting much out of it...

Not really - Nothing will really change.

Right now GM makes about 2250 Saturn Ion's a week, and uses $1000 cash AND 0% for 4 years financing (here in New York at least) to move them off dealer lots.

Assuming marketplace acceptance of the Astra here - we will still have the 2250 units per week to sell - but at a (assumably) much higher transaction price.

Thus, the 2250 Saturn Astra's sold per week should do wonders for GM's bottom line, and make Saturn dealers (once again) a destination point for car shoppers.

All of this however, depends on my theory being correct...