Chinese Automobiles Jump Nearly 40% In Sales From Year Ago; Next Target Could Be U.S. Market Or Jobs

In China, as their automobile industry quickly builds production, sales jumped about 40% from last year's same sales period. At least 414,500 cars were sold in January in China. Surprisingly, the partnership of General Motors and China, Shanghai General Motors was in first place at 40,570 units compared the the entirely Chinese Chery in second place at 37,207 units. Last year, Chery was in seventh place amongst the Chinese sold automobiles, but with strong exports of 50,000 cars, Chery is well on the way to becoming China's best selling brand name and could be exporting automobiles into the American marketplace very soon, presenting yet another threat to the sagging U.S. automobile business.

Even comic John Stewart joked about how some became upset about an ad from GM first aired during the Superbowl featuring a fictional depressed and suicidal robot, yet didn't show the same concern for 35,000 real living autoworkers who lost their jobs in the U.S. with layoffs or buyouts.

Low priced labor in China has already replaced many American jobs. Whether the role of Shanghai General Motors will always be the production of automobiles solely for the Chinese market or will eventually build cars for sale in the U.s. as well is yet to be seen. But part of the future threat to American automobile jobs could come from "outsourcing" of this type.

If history is any guide, China should soon be following both Japan and South Korea as a major future source of export automobiles to the U.S. market, and a further threat to American jobs.