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Edward Niedermeyer

How GM's Bailout Became China's Bonanza

U.S. and Canadian taxpayers, meet Buick's new made-in-China import.
A growing friendship.

A growing friendship.

Photographer: Peter Parks/AFP/Getty Images

During the 2012 election, President Barack Obama held up his bailout of General Motors as a model in the fight against China's growing manufacturing dominance, telling voters that the auto rescue would reverse the industry's multi-decade trend of outsourcing. A single election cycle later, the question of government support for automakers has all but disappeared from the political discourse, yet Detroit is back to sending jobs out of the industrial Midwest. And now GM is leading the way on Chinese outsourcing, announcing it will become the first U.S. firm to import a vehicle made in China to the U.S. It's about time taxpayers ask what their $50 billion rescue really bought them. 

Starting next year, GM will import between 30,000 and 40,000 Buick Envision crossovers annually from a plant in Shandong Province. That won't make the Envision one of GM's best-selling models, but it will greatly outsell the only other Chinese-import car on the market, the Volvo S60L. More importantly, GM's pioneering Chinese import will likely help break down the consumer stigma attached to Chinese cars, leading the way for other automakers to follow suit. If a bailed-out company can get away with selling Chinese cars in the U.S., there's no doubt that the rest will try too.