GM Sheds Some Brands: Good News or Bad?

According to Edmunds.com, the Los Angeles-based auto research firm, the number one question on consumers' minds (as it relates to GM) is "What happens to my warranty and service cost in the short and long term?"
And the answer is, that GM will probably honor the warranty, even if the brand goes away. After all, they want to keep GM customers happy and coming back for more GM cars, when their Hummer or Saturn finally dies. Philip Reed, Senior consumer advice editor at Edmunds.com addressed this question in yesterday's WSJ. He also said other dealerships would pick up the warranty work at "comparable" prices.
But he didn't directly address the fact that GM also announced they will be closing the Saturn and Hummer dealerships, and quite possibly other GM dealerships as they prepare to shrink and become profitable again. This is good news for the aftermarket. As long as repair shops know what they're doing, and perform the service at a comparable rate, they should be able to generate additional business for their shops as these changes take place. And where will the good GM/Saturn techs go? They'll bring their expertise to the good shops.

Another comment about the Saturn line that came out in the WSJ yesterday is the potential for a Saturn made in China or India. According to the report, the Saturn Dealer Council would be open to selling vehicles made by Indian or Chinese makers that would be sold as Saturns. GM did not comment on any spinoff plans.

More News from ChinaToday.com

Having recently been to two different tool and equipment events over the past three weeks, China was the topic of discussion for many manufacturers. We are all seeing the effects on our costs as China continues to develop. These are just a few notes from today's China Today. The magnitude of the country is difficult to comprehend for those of us who have not actually traveled to China to see first hand the tremendous changes occurring daily.
-In 2007, 101,480 people died in workplace and transportation accidents.
-China has nearly 160 million vehicles on their roads (as of January, 2008) That little car you see at the top of this entry? It's the Geely Beauty Leopard and sells for about $15,000 in China.
-Chinese consumer inflation was at 7.7% through May, 2008
-Their GDP was up 10.6% through the end of the first quarter, 2008. This is down slightly from their 11% growth of the previous quarter.

And in today's news, for anyone headed to Beijing for the Olympics:
On July 1, Beijing banned more than 250,000 high-emission vehicles from its roads in their continued efforts to curb pollution. That's just 10% of the total vehicle population in Beijing, but they say these vehicles account for 50% of the pollution. They will not be allowed back on the streets until 9/20/08 - after the Olympics end. I guess it's good for foreigners to breathe less-polluted air, but their own people don't need clean air to breathe....

Beginning July 20th, Beijing will start alternate driving days for privately-owned vehicles. They will also remove 1/2 of the government fleet from the roads.

China Economics 101

The folks at Matco gave out some statistics and information on China at their show last week. Here's just some of what they reported:

The Value-added tax used to be 19%, it has been re-set to 5%.
Wages - they're going up an average of 10% each year.
Food costs - up 18% in 2007.
Inflation - up 6.9% in 2007
Home prices - up 11.3% in January 2008 v. January, 2007.

Now, here's some economic information from my favorite Chinese newspaper, Chinadaily.com:
The central government plans to increase spending on rural development by 30% in 2008.
They will establishe 30 high-tech industrial bases, focusing on things like information, biological technology, civil aviation, the astronautical sector, new materials and new energy. What's our country doing to develop technology in these areas?

Last year, the industrial output of the high-tech sector in China accounted for 7.8% of their GDP. Meanwhile, new high-tech exports hit US$347.8 billion, accounting for nearly 30% of the nation's total exports. Industrial output and exports have risen at an average annual rate of 21.5% and 37.7% respectively, during the past seven years through 2007. This year, ten million jobs are expected to be created in urban areas.

China's economy grew by 65.5% over the past 5 years, with an average annual increase of 10.6%, to become the world's 4th largest economy in 2007. Earlier this week, China's parliament announced a targetd GDP growth of 8% for 2008. They expect to hold their CPI at 4.8% in 2008, however their PPI climbed 6.1% in January, from a year earlier.

Think prices for imported tools and equipment are going to stay low? Think again.

Shipping Containers: Your Next Workshop?

Not only are we stuck with a bunch of Chinese tools and equipment, now we have to figure out how to do something with the containers they come in. Check out this post, originally posted on the Toolmonger.com

Toolmonger » Blog Archive » Shipping Containers: Your Next Workshop?
A enormous trade deficit with china has left the United States with a glut of shipping containers stacked up so high that neighborhoods near Long Beach harbor experience sundown an hour earlier than the surrounding area. But the news isn’t all bad: these standardized 40′ X 8′ X 8-1/2′ boxes are being repurposed by people all around the world into low cost housing, internet hubs, and even workshops.

Pretty much any international shipping hub in the US has a glut of these giant lego blocks piling up around their necks. The most common size is 40′, but they come in lengths from 8′ cubes all the way up to 53′ tractor-trailer types.

Companies like Sea Box, Inc. have seized this opportunity and started to market to small businesses and DIYers. While a smaller cubes can be used as a simple tool sheds, the larger versions are a simple platform to add storage and/or workshops to a yard. And while they aren’t light — at about two tons — they are meant to be moved, and hauling companies will drop them on site for a reasonable fee.

A standard used 40′ container sells for roughly $1,500.00, but if you’re going to alter it by cutting out walls and adding windows anyway, you can often find damaged units for much less. A simple pier-type foundation will give the container a good stable foundation. The possibilities are endless once you get one of these set up.

Sea Box’s Example Workshop [Seabox.com]
Shipping Container Auctions [Ebay.com]
Free Storage Container Price Quotes [B2B-Exchange.com]
DIY Shipping Container Construction Videos [YouTube.com]