Lower wages, lower production costs, cheaper plant construction and maintenance - all contribute to the decision. Currently GM builds about 15% of its cars sold in the U.S. elsewhere. That number is expected to rise to 23% within five years, reports MSNBC. In addition to more extensive use of the company's facilities in Mexico, production in China and South Korea could also increase dramatically.
The plan, revealed as part of a 12-page response to questions from legislators regarding GM's production plans, reveals that the sheer cost of building cars in the U.S. overcomes the desire to keep production facilities - and jobs - here.
It also raises a potential problem for the government as it continues to fund GM. If jobs are effectively being exported with taxpayer money, it effectively means some of those workers that will lose their jobs are paying for them to be taken away. Fairness aside, that's not a very politically tenable position, and that could impact the future of government funding for GM.
On the other hand, a complete collapse of GM would mean even more U.S. jobs lost, and possibly an even greater burden on the taxpayer through the waves of unemployment, bankruptcy and litigation that would roll through the industry.