Big Three Boost U.S.-Made Exports
April 08, 2008

Last year's landmark labor contracts and the weak U.S. dollar are breathing new life into U.S. auto plants as Detroit automakers boost exports of U.S.-made vehicles, the Wall Street Journal reports.

General Motors plans to export U.S.-made vehicles to Europe, China and Latin American markets such as Brazil; Chrysler is shifting production from Europe to the U.S. to take advantage of lower costs and available plant capacity; and Ford is considering ramping up exports if it can bring labor costs down, the business journal reported in Tuesday’s edition.

The paper notes that increasing exports could help the Big Three turn around their unprofitable North American operations, help them tap into fast-growing overseas markets as U.S. sales slump, and lower costs per vehicle by using excess manufacturing capacity.

The U.S. exported $50.66 billion worth of cars and light trucks, according to statistics quoted by the journal from the Commerce Department. That’s about a third of what it imported. Roughly half of its exports are to neighboring Mexico and Canada. Much of the rest consists of higher-end vehicles unavailable elsewhere, the paper noted.

GM: Enclaves, Malibus Going Global

Later this year, GM will begin shipping the Buick Enclave made in Lansing, Mich., to China, where the Buick brand is a big seller. GM hopes eventually to export as many as 25,000 Enclaves a year to China, the automaker told the Wall Street Journal.

GM also plans to sell the Chevrolet Malibu, made in Kansas and Michigan, and possibly other U.S.-made cars to Brazil and other Latin American markets. GM has told UAW officials it is seriously considering building a future small car in Lordstown, Ohio, that would be exported to markets outside North America; it would be one of five new vehicles being produced there near the turn of the decade.

Chrysler: More Dodge and Jeep Exports

Chrysler is exporting increasing numbers of compact Dodge Caliber and Jeep TK models made in Belvidere, Ill., to several European countries. So far this year, more than 15,000 have been exported, up about 40% from the year-earlier period, the Wall Street Journal reported.

Chrysler has larger Jeeps made in Europe but is looking at moving that production to its U.S. plants when the Jeep contract with its European manufacturer, Magna Steyr AG, expires in 2009, sources told the newspaper. Chrysler started exporting the Dodge Caravan minivan – sold in Europe as the Chrysler Voyager from St. Louis instead of building it in   Europe.

Ford: Mulling Ranger, Focus Exports

Ford is mulling exporting the Ranger and Focus to places such as Brazil and Mexico when the economics make sense, sources told the Wall Street Journal.

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