(04-04-2025, 11:14 AM)mikesez Wrote:

(04-04-2025, 09:22 AM)Jag149 Wrote: I was the inbound logistics supplier for the renovation of the Buick assembly plant in Flint Michigan in 1984. That was GM's first just in time assembly plant that delivered to point of use docks. The average stay of material in the facility was 4 hours. They tore the entire assembly line out and redesigned it. I began in February and the facility was up and running October 2. GM has 2 idle plants in Flint. The old Buick one I mentioned and a Truck plant. My point is it doesn't have to take 3 years for autos.

Setting that problem aside, you're left with the fact that if running that factory was more economical than running one in Mexico or Korea, they would already be doing it.  Consumers will be paying more for the products produced at that re-opened factory in Flint than they used to pay for the nearly identical products produced at a factory in Busan.

A couple issues needed to be taken into account. First back then GM had to fight the union tooth and nail to install robots, now they are welcomed. Both plants have engine plants next to them, so inbound transportation cost there are almost zero. These things alone will drive savings that will offset the wage differential. Add to that the finished good transportation cost savings and it should be pretty close if not an actual savings.

Additionally produced units inside the States will qualify for lower corporate tax rates. That is if they ever codify the tax bill now in Congress.

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