Confusing reporting or backtracking on outsourcing Jeeps?

Fiat, the majority owner of bailed-out Chrysler, told Bloomberg that they were going to re-start production of Jeeps in China and perhaps move all Jeep production to that nation.

Here is the actual quote from Mike Manley, chief operating officer of Fiat and Chrysler in Asia (emphasis added):

“The volume opportunity for us is very significant,” Manley, who is also president of the Jeep brand, said in an interview at Chrysler’s Auburn Hills, Michigan, headquarters. “We’re reviewing the opportunities within existing capacity” as well as “should we be localizing the entire Jeep portfolio or some of the Jeep portfolio.”

I read the Bloomberg article and thought they were saying they were considering moving "the entire Jeep portfolio" to China, and reported that here on this blog.

To be clear, I didn't think that meant they would idle all the assembly lines and the U.S. work force; my point wasn't about the loss of jobs, but the loss of the Jeep brand being 'made in America' and the campaign implications if the iconic Jeep was outsourced to China.

Apparently, that's not at all what they intended and they're now 'clarifying' after Mitt Romney mentioned the article in a speech in Defiance last night. The Detroit News reports:

The Bloomberg story, though accurate, "has given birth to a number of stories making readers believe that Chrysler plans to shift all Jeep production to China from North America, and therefore idle assembly lines and U.S. work force. It is a leap that would be difficult even for professional circus acrobats," Chrysler spokesman Gualberto Ranieri said.

"Let's set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China. It's simply reviewing the opportunities to return Jeep output to China for the world's largest auto market. U.S. Jeep assembly lines will continue to stay in operation."

The Bloomberg story, however, sparked the confusion in the first paragraph of the story, saying Chrysler planned to return Jeep output to China "and may eventually make all of its models in that country."

This may be a simple case of confusing reporting, but my distrust in this administration is so great that I couldn't help but wonder if someone didn't make a phone call to Chrysler to say 'hey - that's gonna hurt; make it go away.'

WSPD show recap - Tuesday, Sept. 25, 2012

Here are the discussion items from my stint as guest host on 1370 WSPD Tuesday:

* Hilary Clinton's comments about "preaching" to the world about the "elite" not paying enough in taxes and not contributing to schools, hospitals and growth.

Link to story

* In New York City, no soda but 'morning after' and birth control pills for high school students. A school nurse called in to say there was no way she would want to be responsible for dispensing this drug. Another caller asked how this could be allowed when they can't even hand out aspirin.

link to story

* A ban on father-daughter dances? Yes, because of the ACLU.

link to story

* More from the ACLU - are bans on same-sex classes and schools next?

link to story

* Nick Mascari of Third Base Politics on Democrat Bellfontaine mayor who is proud to be part of the dependent nation.

This link to the story contains links to previous posts, including this one which shows the mayor's new kitchen and outdoor furniture, and this one from Ohio Watchdog on the potential impact to a MSM reporter over the story.

Podcast is available here.

* This quote from Erick Erickson at RedState.com:

“…if a Republican candidate loses, the media blames it on the candidate being too conservative. If a Republican candidate wins, the media credits the candidate drifting toward the center. The only sure fire loser in American politics is the conservative movement, which is remarkable given the amazing success the conservative movement has had in spite of this.”

Wednesday Show:

* Jason Hart of Media Trackers Ohio will join us at 5 p.m. to talk about PolitiFact Ohio - the bias of its reporters and the opinions it produces disguised as fact-checking.

* Bacon shortage? Say it ain't so!

* Presidential candidates Barack Obama and Mitt Romney both in town - and Mayor Mike Bell's take on their criticism of China

China's actions send light bulb prices soaring

Well, we can thank the U.S. Congress, President George W. Bush, the Environmental Protection Agency and a bunch of globaloney junk science 'experts' for this ....

Starting next year, the United States will begin phasing out traditional incandescent bulbs in favor of compact fluorescent (CFL) bulbs, light-emitting diodes (LED) and other technologies. Oh - and the European Union has also mandated a switch.

Politicians and environmentalists rejoiced while regular people like you and me questioned how a light bulb that requires special disposal methods if broken could actually qualify as 'better.'

It's not just the mercury disposal - there are other drawbacks to CFLs, like the time it takes them to get to full strength, especially in colder temperatures, the type of light they emit which some people don't like, and their inability to work with dimmers.

But one of the biggest impacts of the upcoming ban is the impact it had on manufacturing in our country. Many incandescent bulb makers closed up shop and moved their production to countries that still allow such bulbs, like Mexico.

So where are the new, mercury-laden bulbs being produced? China.

And the latest news is that China has closed or nationalized their producers of rare earth metals, the materials which are used in these CFL bulbs and other 'green' products, which has sent their prices skyrocketing.

BEIJING — In the name of fighting pollution, China has sent the price of compact fluorescent light bulbs soaring in the United States.

By closing or nationalizing dozens of the producers of rare earth metals — which are used in energy-efficient bulbs and many other green-energy products — China is temporarily shutting down most of the industry and crimping the global supply of the vital resources.

China produces nearly 95 percent of the world’s rare earth materials, and it is taking the steps to improve pollution controls in a notoriously toxic mining and processing industry. But the moves also have potential international trade implications and have started yet another round of price increases for rare earths, which are vital for green-energy products including giant wind turbines, hybrid gasoline-electric cars and compact fluorescent bulbs.

General Electric, facing complaints in the United States about rising prices for its compact fluorescent bulbs, recently noted in a statement that if the rate of inflation over the last 12 months on the rare earth element europium oxide had been applied to a $2 cup of coffee, that coffee would now cost $24.55.

An 11-watt G.E. compact fluorescent bulb — the lighting equivalent of a 40-watt incandescent bulb — was priced on Thursday at $15.88 on Wal-Mart’s Web site for pickup in a Nashville, Ark., store. (emphasis added)

CFLs are more expensive than incandescents to begin with - and now their price is going up even more. Even Walmart had to raise the price they charge!

But it's not just the light bulbs. These rare earth metals are used in a lot of 'green' products (emphasis added):

“The high cost of rare earths is having a significant chilling effect on wind turbine and electric motor production in spite of offsetting government subsidies for green tech products,” said one of the conference attendees, Michael N. Silver, chairman and chief executive of American Elements, a chemical company based in Los Angeles. It supplies rare earths and other high-tech materials to a wide range of American and foreign businesses.

The linked article explains that this shut-down is expected to last for about three months and, because they're using the excuse of 'environmental concerns,' "China could potentially try to circumvent international trade rules that are supposed to prohibit export restrictions of vital materials."

Imagine that! Do you think any politician or environmentalist thought about the fact that China is pretty much the only supplier for these materials and that, by eliminating 'old' alternatives, we'd be at the mercy of this communist nation? Don't you just hate those unintended consequences that politicians never consider?!?

But that's not all:

China has been imposing tariffs and quotas on its rare earth exports for the last several years, curtailing global supplies and forcing prices to rise eightfold to fortyfold during that period for the various 17 rare earth elements.

Even before this latest move by China, the United States and the European Union were preparing to file a case at the W.T.O. this winter that would challenge Chinese export taxes and export quotas on rare earths.

So now we have no alternatives and are at the mercy of the Chinese government and their whims since they're taking over the independent producers.

Beijing authorities are creating a single government-controlled monopoly, Bao Gang Rare Earth, to mine and process ore in northern China, the region that accounts for two-thirds of China’s output. The government is ordering 31 mostly private rare earth processing companies to close this year in that region and is forcing four other companies into mergers with Bao Gang, said Li Zhong, the vice general manager of Bao Gang Rare Earth.

The government also plans to consolidate 80 percent of the production from southern China, which produces the rest of China’s rare earths, into three companies within the next year or two, Mr. Li said. All three of these companies are former ministries of the Chinese government that were spun out as corporations, and the central government still owns most of the shares.

The Chinese government now has a monopoly. The prices have already gone up and are likely to go up even more.

Aren't you glad we're no longer making and using incandescent bulbs in the U.S.?

I think this qualifies as 'stuck-on-stupid.'

Local Chinese community helps Mayor Bell in China visit

Press Release:

Mayor (Mike) Bell from Toledo, Ohio, in the United States meets with Mayor Zhu in Qinhuangdao, Hebei in China on May 24, 2011. This is the first time for an American mayor and his delegation from Toledo to meet a Chinese mayor and other business people in Qinhuangdao as one of Toledo’s sister cities in the history of the past 26 years.

This sister city relationship was primarily initiated by Michael Cicak of Glasstech in cooperation with Mayor Donna Owens in 1985. Since then, many Chinese and American community leaders and colleagues have developed and support various initiatives between Toledo and Qinhuangdao, including educational and cultural exchange, business and economic development, medical and health collaboration and many other areas. They have been very active and played a very important role in facilitating the friendly and successful relationship between Toledo in the United States and Qinhuangdao in China. For the recent 10 year, for example, Dr. Guangzhong Chen, Ms. Hewen Slak, Mr. John Fullen, and Dr. Yueh-Ting Lee have been very instrumental in promoting this sister city relationship. Due to the constructive cooperation between Toledo and Qinhuangdao, Yanshan University in Qinhuangdao developed a partnership agreement with the University of Toledo several years ago. Toledo Hospital developed a partnership with Qinhuangdao First People’s Hospital two years ago. In Sept 2010, Mayor Michael Bell, the first Toledo mayor visited China and met with the delegation from Qinhuangdao while in Beijing.

To better support this sister city relationship, China Committee was established by Dr. Yueh-Ting Lee and Dr. Guang-Zhong Chen about four years ago. This committee has approximately 15 members including Chinese Americans, European Americans, African and other Americans, and several Qinhuangdao natives who live in NW Ohio. Every year, this voluntary community group in Toledo helps to facilitate four to five delegations from Qinhuangdao who come to visit Toledo, and vice versa. Almost each year, Qinhuangdao sends Chinese kids to International Youth Academy. Numerous Chinese college students from Qinhuangdao also come to study in Toledo. Similarly numerous Americans from Toledo visit Qinhuangdao in China. In May 2011, Mayor Bell and his delegation visit Qinhuangdao for the first time with the help from Dr. Chen, Dr. Lee, and China Committee who have been very collaborative and instrumental in facilitating and arranging this trip to Qinhuangdao.

With over 2.5 million people, Qinhuangdao is a major port and popular vacation spot located in northeastern China and is also known as the Glass City of China. It is one of the most beautiful and pleasant cities near the Pacific Ocean. It is only about two hours away from Beijing by train.

Mayor Bell to sign MOU on Marina District with Chinese investors

Dashing Pacific Group is now interested in the Marina District as well as the Docks.

Press release from the City of Toledo:

Bell to sign memorandum with investors interested in Marina District

Toledo Mayor Michael P. Bell expects to sign a memorandum of understanding (MOU) on Tuesday before City Council's economic development committee hearing with investors interested in the Marina District. The MOU is not a solid offer for purchase, but indicates that Dashing Pacific Group is interested in purchasing and developing the riverfront district pending the successful purchase of The Docks restaurant complex.

Dashing Pacific Group made an offer to purchase The Docks in January of this year and Council will contemplate the proposal at their hearing beginning at 10:30 a.m. on Tuesday morning, February 8th. The administration has asked for a vote on the sale at the full meeting of council on Tuesday afternoon.

Mayor Bell will be available for comments following Tuesday's hearing.


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Toledo gets $2.15 million offer for The Docks from Chinese group

Press Release:

Bell Administration to Forward Proposal for Sale of Docks

Mayor Michael P. Bell expects on Tuesday morning to deliver a proposal for the sale of The Docks restaurant complex to Toledo City Council for consideration.

The proposal offers $2.15 million for the property and is offered by a group of investors, Dashing Pacific Group, based in China. The relationship with the investors was initiated in September when Bell and Dean Monske, Deputy Mayor for External Relations, joined a multi-city tour of China seeking business development. Representatives of Dashing Pacific have since made two visits to Toledo to further explore the opportunities that exist for expanding their businesses in North America, once in October and once in December.

Both the Mayor and Deputy Mayor, along with a representative of the investment group, will be available to answer questions at a 9:30 a.m. media briefing on Tuesday, January 25th in the Mayor’s office.

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Don't rush to accept Chinese investment in Toledo

I don't know if he was the first to say it, but my father-in-law was the first one I heard recite the sentiment that America will never be taken by force - but it can be bought.

This opinion is widely shared by many who know that Americans will resist, with their last breath, any foreign invader who comes ashore intending the conquest or destruction of our nation. But what if the goal is not to take us by force, but to slowly, over time, become our keepers?

With the current amount of our nation's debt owned by the Chinese, some are very concerned about the implications, especially with Chinese President Hu Jintao's state visit going on in Washington, D.C.

Now we learn that unnamed Chinese investors are interested in purchasing waterfront property in Toledo.

To a city that never got out of the last recession, this one has hit us especially hard, so news of investors is welcomed by many. But Congresswoman Marcy Kaptur (D-OH9) isn't so thrilled, "because she believes it would be a calculated move by the government, rather than individuals looking for opportunity."

There is validity to her concern. While I certainly don't mind a corporation or individual investing in our area or purchasing property, I do mind if a foreign government does. The only exception I would see to a foreign government - especially a communist one - owning land is if they are building an embassy on it. But that's not what is planned in this instance.

Before we leap without looking, we need to give serious thought to multiple aspects of any potential transaction.

The first thing we need to know about these potential investors is whether or not they are a state-owned enterprise (one of the roughly 150 companies that report directly to the Chinese central government) or one of the subsidiaries (one owned by a municipal or provincial government in which the central government is a major shareholder).

Should we have a healthy distrust of a potential investor that is actually controlled by a communist government structure? Or, in this era of a global economy, do we overlook the communistic aspect in favor of potential jobs and tax revenues?

As this 2008 Forbes article explains, it's not so clear anymore:

In one portrayal, they are infiltrators to be viewed with suspicion. An example: Aluminum Corporation of China's (nyse: ACH - news - people ) recent multibillion-dollar purchase of a stake in Rio Tinto (nyse: RTP - news - people ) has raised fears about China's agenda for the acquisition of Australia's resources.

The other version sees state-owned companies as muscle-bound goons: without the smarts of a private company but with plenty of brawn. In this characterization, they are relics of a failed economic experiment that still dominate the national economy--controlling natural resources, utilities and many other vital sectors. Their power and influence--particularly their links to the ruling Communist Party and government--give partners and competitors pause.

Both views, however, fail to recognize that as the Chinese economy evolves, it is no longer so easy or desirable to pigeonhole state-owned enterprises. The line between them and private sector companies has blurred considerably.

There is also the question of which properties we should allow them to purchase if we decide we do want their presence.

As above, are they interested in acquiring our natural resources? Our relatively inexpensive waterfront property is a rarity in the world, much less here in the United States and I've been amazed that it hasn't been bought up before now. It's also our greatest asset and something I worked to emphasize when I was in office. But do we want our most valuable asset owned by a company controlled by a communist foreign government?

Restricting the sale of such property isn't a new idea. The government of Mexico has a restriction in their Constitution that prohibits foreigners from owning waterfront land. As this website explains:

The law declares that the Mexican nation has original ownership to all land and water in Mexico, as well as minerals, salts, ore deposits, natural gas and oil; but that such ownership may be assigned to individuals.

The Mexican Constitution prohibits direct ownership of real estate by foreigners in what has come to be known as the "restricted zone." The restricted zone encompasses all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline. However, in order to permit foreign investment in these areas, the Mexican government created the "fideicomiso," (FEE-DAY-E-CO-ME-SO) which is, roughly translated, a real estate trust. Essentially, this type of trust is similar to trusts set up in the United States, but a Mexican bank must be designated as the trustee and, as such, has title to the property and is the owner of record. The Mexican Government created the "fideicomiso" to reconcile the problems involved in developing the restricted zone and to attract foreign capital. This enabled foreigners, as beneficiaries of the trusts, to enjoy unrestricted use of land located in the restricted zone without violating the law.

A "fideicomiso" is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the seller of property in the restricted zone. Foreign buyers cannot own real estate in the restricted zone due to Constitutional restrictions. The bank acts on behalf of the foreign buyer, taking title to real property. The bank, as trustee, buys the property for the foreigner, then has a fiduciary obligation to follow instructions given by the foreigner who is the trust beneficiary. The trust beneficiary retains and enjoys all the rights of ownership while the bank holds title to the property. The foreigner is entitled to use, enjoy, and even sell the property that is held in trust at its market value to any eligible buyer.

In order to allow foreigners to enter into the agreement contained in the Calvo Clause, Mexico requires all foreigners to apply for and obtain a permit from the Ministry of Foreign Affairs prior to contracting to acquire real estate in Mexico.

While we have no such prohibitions in our Constitution, the City of Toledo is the owner of the properties in question and, as owner, can place restrictions on the sale of the property. The city could even retain ownership of the land and offer, for example, a 99-year lease, preserving the ability of both parties (seller and buyer) to protect their interests in the transaction.

The potential sale of city-owned property to a foreign entity might be an issue that will unite previously opposing groups. I can see developers, free-market supporters, environmentalists and public access groups joining together to ensure the land is not owned outright by a foreign government whose long-term interests might conflict with our own. The communist Chinese government is well-known for taking a very long-term approach to accomplishing their goal of dominance.

There will be those who embrace the idea without any details, simply because it may bring needed jobs and tax revenues to the area. There will be others who reject it outright because it's communist China.

I believe the proper approach is somewhere in between: welcoming the interest of foreign investors while protecting American land from ownership by a foreign government. If it's done correctly, we can all be happy with the outcome.

Another U.S.-funded sex and drinking study - this time in China

Earlier in the month, I blogged about U.S. taxpayers funding drinking studies in Argentina.

Turns out, China is getting some of our money as well. In fact, they're getting $2.6 Million to Train Chinese Prostitutes to Drink Responsibly on the Job.

No - I'm not making this up.

The National Institute of Alcohol Abuse and Alcoholism (NIAA), a part of the National Institutes of Health (NIH), will pay $2.6 million in U.S. tax dollars to train Chinese prostitutes to drink responsibly on the job.

Dr. Xiaoming Li, the researcher conducting the program, is director of the Prevention Research Center at Wayne State University School of Medicine in Detroit.

The grant, made last November, refers to prostitutes as "female sex workers"--or FSW--and their handlers as "gatekeepers."

"Previous studies in Asia and Africa and our own data from FSWs [female sex workers] in China suggest that the social norms and institutional policy within commercial sex venues as well as agents overseeing the FSWs (i.e., the 'gatekeepers', defined as persons who manage the establishments and/or sex workers) are potentially of great importance in influencing alcohol use and sexual behavior among establishment-based FSWs," says the NIH grant abstract submitted by Dr. Li.

"Therefore, in this application, we propose to develop, implement, and evaluate a venue-based alcohol use and HIV risk reduction intervention focusing on both environmental and individual factors among venue-based FSWs in China," says the abstract.

The research will take place in the southern Chinese province of Guangxi.

Of course, the fact that the study will take place in Beihai, a costal tourist city in Guangxi, is only a coincidence.

Beihai is a beautiful and romantic city boasting subtropical seaside scenery.

Facing the Beibu Gulf, the climate in Beihai is very pleasant: sufficient sunlight, abundant rainfall, luxuriant plants, green grass and beautiful flowers flourish in its fresh air.

Many people, both home and abroad, choose to live in Beihai, as it is regarded as one of China's four most liveable cities. (Zhuhai, Beihai, Weihai, and Xiamen)

Dining in Beihai is attractive and provides many types of cuisine within close proximity Guangdong, Shandong, Hunan, Sichuan and Zhejiang Cuisines are readily available. Of course there are also many restaurants serving western-style food. Seafood is popular in Beihai due to its proximity to the seafood market situated on its shoreline. Fish, shrimp, shellfish and crab are readily available. The blowing sea breeze adds to the fun of eating seafood.

As a beautiful garden seaside city in the south of China, it is no exaggeration to say Beihai is a present given by Mother Nature. It is welcoming to all tourists from home and abroad.

So why, you might ask, aren't these researchers conducting said study in America?

Li said his study is being done in China rather than the U.S. because prostitution occurs with alcohol use in the United States like it does in China, Americans will be able to benefit from the project’s findings.

“We want to get some understanding of the fundamental role of alcohol use and HIV risk,” he said. “We use the population in China as our targeted population to look at the basic issues. I think the findings will benefit the American people, too.”

Makes perfect sense, doesn't it?

Personally, I'm opposed to government funding such studies in the first place, but if they're going to do so, can they please actually do them in the U.S. if the problem is present here, rather than fund extended vacations for researchers in exotic locales?