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Europe Is Now China's Sweatshop As Great Wall Starts Building Cars In Bulgaria

Tyler Durden's picture


When it comes to labor-wage parity, nowhere has this topic been more debated than in the context of China and the US. Specifically, with US wages declining consistently for the past 3 years despite commodity price inflation spiking with a 2-3 month lag following every coordinated central bank printing episode (such as the one we are experiencing now), many have proffered their predictions as to when Chinese secular inflation would make wage pay equivalent on both sides of the Pacific, and stop the exporting of jobs from the US to China (a good discussion on the topic can be found in "With China Forecast To Reach Wage Parity With The US In Five Years, Is A New Manufacturing Golden Age Coming To The US?"). And while labor equivalency between China and the US likely still has a ways to go, we have now crossed a critical Rubicon, as Chinese and European wages, at least in one part of European Union, have caught up. Net result, as Spiegel reports, carmaker "Great Wall this week became the first Chinese automobile manufacturer to open an automobile assembly plant inside the European Union in the latest move suggesting the country's carmakers are seeking to establish a beachhead into the European market." Yes, that's right: it is now cheaper for China to make cars in the European Union: "It used to be that European carmakers opened plants to assemble their cars in China. Now the Chinese have turned the tables with the opening of their first factory in Bulgaria, an EU country with low labor costs and taxes. Increasingly, Chinese carmakers are setting their sights on the European and American automobile markets." The ramifications of this landmark development are massive for virtually every aspect of the economy: for domestic labor migration, for inflation, for the trade balance, and certainly for US workers.

From Spiegel:

Bulgarian Prime Minister Boyko Borisov on Tuesday attended the opening of Great Wall's new factory in the northern Bulgarian village of Bahovitsa. The plant is to be operated jointly by Great Wall and the Bulgarian firm Litex Motors.


For years, European carmakers like Volkswagen have established large joint ventures in order to gain footholds in the Chinese market, but now the tables appear to be turning.


"Stepping on the European market is our strategy," Great Wall CEO Wang Fengying said at the opening festivities.


Within three to five years, the company plans to produce an entire line of models in Bahovitsa to be sold in Europe, she said. Test assembly of the Voleex C10 and the Steed 5 pick-up truck, which sell for 16,000 to 25,000 leva (€8,200 to €12,800), began already in November.


In the midterm, Great Wall plans to assemble around 50,000 automobiles per year at the 500,000 square meter plant. The number of workers is expected to grow from the current total of 120 to 2,000. Initially, the company plans to sell its vehicles primarily in Bulgaria and neighboring Eastern European countries like Serbia and Macedonia, but it later plans to expand into other EU countries.


Great Wall is China's largest manufacturer of sports-utility vehicles and operates plants in around a dozen countries, including Russia, Indonesia, Egypt and Ukraine.

Yesterday Bulgaria, a poor EU member, but an EU member nonetheless...

Bulgaria, the EU's poorest country, is attractive as a labor market because it is an oasis of cheap wages and low taxes. Workers are considered well educated and the country is ideal as the site for a company like Great Wall to launch. Given that wages for factory workers have risen considerably in China in recent years, assembly sites abroad have become increasingly attractive for some manufacturers. Greece

...And tomorrow all of Europe, and then America?

So the real question is if Chinese wages can no longer compete with those in a poor EU member, just how high are they? And how long before China, for so many years a happy mercantilist importer of Bernanke's monetary inflation courtesy of its currency peg, is no longer competitive with ever growing parts of the EU, and then America? Does this mean that China's cheap labor force has pleateaued and the labor migration of peasants moving from the periphery to the cities no longer provides cheap labor? This was the topic of an extended analysis by SocGen from early January (posted here), of which the salient chart is presented below. Today's news will certainly force everyone to have a second long, hard look at the chart in the top left as it means that the Chinese labor force may indeed have topped out.

Aside from demographics, the macroeconomic implications on foreign trade and capital flows are monumental: most immediately for the US, it puts today's Wal Mart miss in a very different perspective, as it means that China is no longer the source of cheap commoditized produce, which in turn means that the entire discount retail vertical may have entered the secular sunsetting phase. It also means that Chinese producer margins are about to turn negative, and China is about to replay all the same EPS boosting gimmicks that America has gone through in the past 3 years, only in China, where there is no safety net, no jobless insurance claims, no EUCs, and no extended benefits (not to mention anything else), a wave of terminations will lead to far more unpleasant consequences than a bunch of unemployed people sitting on their coaches playing Xbox and watching GOP presidential debates. Most importantly, it means that going forward China will have zero tolerance for Fed monetary expansion as any hot money will immediately set off an inflationary forest fire as China suddenly finds itself with absolutely no output gap slack (unlike America which allegedly has more than enough, even though it is really just a secular regression to the mean shift).

In short, the implications, both good and bad, are huge.

And while this may be merely the proverbial canary in the Bulgarian coalmine for now, it will soon be followed by a murder of crows and then a kettle of vultures. Because the Pandora's box has just been opened.


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Wed, 02/22/2012 - 19:48 | 2187015 bogey4
bogey4's picture

I'm sorry but Bulgaria is not Europe.

Wed, 02/22/2012 - 19:53 | 2187044 slaughterer
slaughterer's picture

The Chinese own us all already.  We just do not fully realize it yet.  

Wed, 02/22/2012 - 20:07 | 2187091 Careless Whisper
Careless Whisper's picture

just a matter of time before they open a car plant in detroit.

Wed, 02/22/2012 - 20:15 | 2187119 Coke and Hookers
Coke and Hookers's picture

The Chinese already have significant operations in the third world so why not Detroit? ;-)

Wed, 02/22/2012 - 20:18 | 2187129 nmewn
nmewn's picture

Pimp My Rickshaw!

Wed, 02/22/2012 - 22:49 | 2187596 Michael
Michael's picture

That stupid cunt Pelosi is also a bitch.

Now you know the reason for my avitar.

Wed, 02/22/2012 - 23:20 | 2187671 Harlequin001
Harlequin001's picture

and soon we will all be competing for these new low paid jobs...

Welcome to fiat nirvana...

Thu, 02/23/2012 - 00:42 | 2187870 trav7777
trav7777's picture

china builds totally shitty cars that nobody wants...the only place in europe that would buy them IS bulgaria and other trash countries

Thu, 02/23/2012 - 07:09 | 2188455 Snidley Whipsnae
Snidley Whipsnae's picture

Lest we not forget; "Along with other Central and Eastern European vehicles marketed in the West during the 20th century — such as Lada and Škoda - the Yugo was subjected to derision by critics who pointed to its use of old-generation Fiat technology and to alleged issues with build quality and reliability. The Yugo was voted Car Talk's worst car of the millennium."

Thu, 02/23/2012 - 07:48 | 2188481 EmileLargo
EmileLargo's picture

Skoda has had a huge turn around. It is now one of the most reliable cars in the world. Volkswagen bought it and turned it around

Thu, 02/23/2012 - 02:01 | 2187989 non_anon
Wed, 02/22/2012 - 20:23 | 2187140 Matt
Matt's picture

Judging by their choice of Bulgaria, I would expect them to open their car plant somewhere like West Virginia, or Arkansas.

Wed, 02/22/2012 - 21:13 | 2187315 smiler03
smiler03's picture

I think the Chinese might have a shock when it comes to selling cars. Most "engineered" products from China have a built in obsolescence time of about two weeks. Unless they can dramatically change this then their cars will just be considered the "Lada" of Europe.

On a positive note this can only improve the Bulgarian GDP.

Wed, 02/22/2012 - 22:27 | 2187539 Buckaroo Banzai
Buckaroo Banzai's picture

An old Russian joke: If you see a Bulgarian in the street, beat him. He will know the reason why.

Wed, 02/22/2012 - 22:35 | 2187562 LetThemEatRand
LetThemEatRand's picture

Weren't Russians of that era evil Commie Ruskies?   I guess when anyone says something really unpleasant and derogatory about another entire country full of people -- no matter how much you disapprove of the person speaking --  you approve.  Nicely done.  

Wed, 02/22/2012 - 23:25 | 2187692 Buckaroo Banzai
Buckaroo Banzai's picture

What the fuck is wrong with you? It's a joke. Get over yourself.

Wed, 02/22/2012 - 23:34 | 2187714 LetThemEatRand
LetThemEatRand's picture

The joke is on you.

Thu, 02/23/2012 - 00:06 | 2187782 prole
prole's picture

You are the biggest joke on this forum

Thu, 02/23/2012 - 00:30 | 2187841 LetThemEatRand
LetThemEatRand's picture

No you are the biggest joke.  Everything you say bounces off me and sticks..  Or it is rubber and I'm glue.... Or something.  Asshat.

Wed, 02/22/2012 - 23:22 | 2187679 Harlequin001
Harlequin001's picture

The Russians weren't very good at jokes, were they...

Thu, 02/23/2012 - 00:29 | 2187839 chindit13
chindit13's picture

I remember this one.....

A group of Soviet soldiers are listening to a speech by a senior apparatchik extolling the virtues of Communism.  The speaker says, "Soon, our glorious People's Aircraft Company will be producing private jets so that every comrade will have his own."

One of the soldiers speaks to another, "Igor, why we need jets for everyone?"

The other replies, "Boris!  You idiot!  What if you are in Minsk and you hear there is bread for sale in Kiev?"

Thu, 02/23/2012 - 13:25 | 2189567 AndTheRest
AndTheRest's picture

In Soviet Russia, Joke gets You!

Wed, 02/22/2012 - 23:22 | 2187681 Harlequin001
Harlequin001's picture

with all this debt and plunging wages you soon won't be able to afford anything but a Lada of Europe...

Thu, 02/23/2012 - 21:32 | 2191401 Cathartes Aura
Cathartes Aura's picture

still waiting for someone to mention the rising costs of gas for all these cars, and jobless owners. . .

Thu, 02/23/2012 - 01:35 | 2187950 laomei
laomei's picture

Actually Chinese cars have improved by leaps and bounds and are quite economical now.  Not the safest little cars on the road, but they are cheap and it's more economical to build them in Europe than it is to export them... with the additional benefit of not having to slap "made in china" on them, which sets aside many fears and concerns regardless of it not making any real difference.


Question for ya... you need a new car, you don't need it do to very much, but you want gadgets and a decent ride with good fuel economy.  5k euro is totally something worth considering.


What do you think would happen in the US if it was poassible to get a QQ for $4k~$6k new?  Your other options being very overpriced new cars or a used car with problems that will cost even more than that?  Hell, you take the QQ, I know I would.  Cheap to buy, cheap to repair and if it completely dies you won't be out a huge amount of money.

Sun, 02/26/2012 - 12:17 | 2197747 Matt
Matt's picture

Europe already has some cheap local cars, like the Dacia. I don't know if they fixed the problems with them or not, but the chinese cars had low compression and poor emissions, so they caused a lot of pollution. And we aren't just taking CO2, we're talking back to the 80s smog.

Thu, 02/23/2012 - 01:57 | 2187983 StychoKiller
StychoKiller's picture

One acronym:  UAW

Thu, 02/23/2012 - 05:03 | 2188275 Kobe Beef
Kobe Beef's picture

another:  ABRA

Thu, 02/23/2012 - 09:23 | 2188585 t_kAyk
t_kAyk's picture


Thu, 02/23/2012 - 00:04 | 2187780 prole
prole's picture

They won't open any plants in Detriot, until they can BUY Detriot.  (They already can, I mean until our traitors let them)

If they can only open plants, once our traitors let them do that, which I don't know if they will, because the Chinese will make much better cars than "we" do, they will prefer to open plants in Carolina, Texas.

Thu, 02/23/2012 - 00:44 | 2187874 trav7777
trav7777's picture

have you ever actually SEEN a chinese product made by a chinese company?

Thu, 02/23/2012 - 01:23 | 2187931 prole
prole's picture

uhhhh, like this computer I'm using right now for example?

Have you ever seen a "Walmart store?" It's filled with Americans like me happily merrily handing over their dollars for Chinese gear. IF-- and I say IF  this stuff is such Krap, how come we customers keep going back?

Look I get it: You don't like Chinese Gear. Fine with me. I'm not telling you what to like or what to buy. Please be free, exercise your freedom. But why are people telling me I can't buy a Chinese car? Who are these fvcking cocksuckers? I don't care if you want to buy a Chinese car or not. But why are these imbeciles not allowing me to purchase the car I want?

If I am not allowed to buy a Chinese car I'm going to sell me car and buy the best condition Pinto I can find just to spite that fvcking retarded anti-Rand Commie.

Thu, 02/23/2012 - 09:46 | 2188609 trav7777
trav7777's picture

I don't shop at walmart.

Yes, there are millions of you handing your money over for chinese shit.  that is why I call you idiots.

The people telling you you cannot buy chinky cars are the ones who will have to extricate your half-dead body from the thing if you collide with a stop sign.

Thu, 02/23/2012 - 12:45 | 2189386 smiler03
smiler03's picture

Where are you Akak with the blobbing monologue?

Mon, 02/27/2012 - 03:34 | 2199883 laomei
laomei's picture

Chinese cars have honestly gotten much much much better than they used to be.  And they will continue to get better as well.


Chinese products can also be very high quality... it all really just comes down to what importers are willing to pay for.  There's more profit to be made on cheap crap that breaks than there is on high quality stuff that lasts.  And it's really as simple as that.  As China moves up the value chain and poor quality is no longer a viable option for plants (as it loses government support), all you'll see is that blame shift on to some other country and China will have it's own niches... much as Japan and Korea have done.

Wed, 02/22/2012 - 20:12 | 2187107 Buck Johnson
Buck Johnson's picture

Just wait until they start coming to america because of our cheap labor.  You can almost see the implosion of our economy and future even now.

Wed, 02/22/2012 - 20:21 | 2187137 LetThemEatRand
LetThemEatRand's picture

We are truly in a race to the bottom.  The amazing thing is that so many are cheering it on. How brilliant to convince the sheep that more of their wool needs to be sold to buy a bigger and more efficient slaughterhouse. 

Wed, 02/22/2012 - 21:06 | 2187280 LowProfile
LowProfile's picture

See, there you go again, sounding rational for a change.

No matter.  You'll say something statist in a few minutes or so and wreck it, I'm sure.

Wed, 02/22/2012 - 21:18 | 2187340 LetThemEatRand
LetThemEatRand's picture

It's called complex thought and complex solutions, Low Profile.  Not everything is solved with simple ideology.  The same oligarchs who are building the slaughterhouse have you convinced that the answer is to further eliminate the checks and balances that we need to keep them at bay.  Like labor laws enforced by the State.   I'm teeing it up for you on purpose.  Tell us all about why the oligarchs would stop behaving badly if we just stopped regulating them or forcing them to bribe public officials.

Wed, 02/22/2012 - 21:36 | 2187414 Stack Trace
Stack Trace's picture

But I thought trickle down economics worked and that rich people created jobs. /sarcasm off

Thu, 02/23/2012 - 02:04 | 2187992 StychoKiller
StychoKiller's picture

"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence.  Destroyers seize gold and leave to its owners a counterfeit pile of paper.  This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it.  Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims.  Watch for the day when it bounces, marked, 'Account overdrawn.'"

"When you have made evil the means of survival, do not expect men to remain good.  Do not expect them to stay moral and lose their lives for the purpose of becoming the fodder of the immoral.  Do not expect them to produce, when production is punished and looting rewarded.  Do not ask, 'Who is destroying the world?  You are."

Thu, 02/23/2012 - 02:05 | 2187993 Burnbright
Burnbright's picture

Or it could be the Oligarchs have you convinced that regulations actually regulate the oligarchs and not ordinary people like yourself, allowing themselves a great ogopolly. 

Keep telling yourself regulations actually acomplish something orther than pricing compitition out of the market. 

Thu, 02/23/2012 - 05:00 | 2188271 Kobe Beef
Kobe Beef's picture

That's how the chaebol system works in Korea. Wow. Global chaebolism. ugh. I just threw up in my mouth. Tastes like kimchee.

Sun, 02/26/2012 - 12:42 | 2197844 Matt
Matt's picture

So you think we should deregulate nuclear power and let anyone who wants to, to build a nuclear reactor? what about nuclear bombs, should anyone be able to have one of those?

I mean, the main libertarian property rights counter argument is that if you damage someones property, they will sue you, but what if you are long dead before that happens? how do you punish dead people to stop living people from doing the same thing?

Wed, 02/22/2012 - 20:01 | 2187051 Eally Ucked
Eally Ucked's picture

you must be a bit under educated, before you post check your facts. As of latestes info Bulgaria is the state bordering California, on the right hand and a bit up from it.

Wed, 02/22/2012 - 20:18 | 2187130 ACP
ACP's picture

Hey, don't flame this guy, he's right. Bulgaria still has a work ethic...

...that is, until they get an evil, fat central banker who wants to destroy said work ethic and brainwash the public into thinking the path to freedom is eternal dependence upon the government, ahem, central bankers.

Wed, 02/22/2012 - 20:19 | 2187133 Viliam
Viliam's picture

Back to school!


Wed, 02/22/2012 - 20:31 | 2187170 Bunga Bunga
Bunga Bunga's picture

Bulgaria is an EU member.

Average labor cost in Bulgaria is EUR 1.51, while EU average is 19.65 EUR. Minimum wage is 75 Euros/month. I guess it's already cheaper than China if you account for shipping and import tariffs.




Wed, 02/22/2012 - 21:29 | 2187396 smiler03
smiler03's picture

+1 Scary shit.

Thu, 02/23/2012 - 01:49 | 2187973 non_anon
Thu, 02/23/2012 - 04:03 | 2188118 Gavrikon
Gavrikon's picture

No, I like Bulgaria much more than Londonistan, Berlinambul or Parisharia.

Thu, 02/23/2012 - 11:47 | 2189116 Ag Star
Ag Star's picture

Sorry dude-- Bulgaria is in Europe.  Soon Americans will be putting together Chinese cars too.  My how the pendulum swings!

Wed, 02/22/2012 - 19:50 | 2187028 Eeyores Enigma
Eeyores Enigma's picture

MFG should move to Greece where labor pays THEM to work.

Wed, 02/22/2012 - 21:37 | 2187420 DosZap
DosZap's picture

Hahahahaa,the DAY I see a Chinese vehicle made in anywhere but in a U.S. Plant, with NON Chinese parts, would be the only day I would even think of any American purchasing it.

Its bad enough we have sold our souls to China and had little choice to a large extent, even w/out knowing at times buy their trash.

I haven't see, nor purchased anthing they make there, that is not utter shit,dangerous, or an accident waiting to happen.

Thu, 02/23/2012 - 00:45 | 2187879 trav7777
trav7777's picture

it's very easy to see chinese offset crash tests on the interwebz.  Suffice it to say they are like crashing a loaf of wonder bread

Thu, 02/23/2012 - 02:06 | 2187996 StychoKiller
StychoKiller's picture

At one time, the same things were said about Japanese autos...

Thu, 02/23/2012 - 07:38 | 2188472 falak pema
falak pema's picture

Hey, who d'ya think built your ipad or Iphone? Foxconn is not US company. Nike shoes and every industrial equipment is built to design in China now. Wakee, wakee...

Thu, 02/23/2012 - 09:44 | 2188608 trav7777
trav7777's picture

by US companies with US quality control imposed.

Chinese label stuff is atrocious.  Their cars are horrid.  Do some research on Cherys

Fri, 02/24/2012 - 02:07 | 2191908 NorthPole
NorthPole's picture

You see, in Europe, in the 70s and for the most part still in the 80s, anything 'made in Japan' had a reputation of 'cheap, asian-made shit'. Times change.

Sun, 02/26/2012 - 12:47 | 2197858 Matt
Matt's picture

Did we ever get plastic rice from Japan? Melamine in the baby formula? Sulfer in the drywall? Lead in children's toys? (well probably, before it was banned, but not intentionally violating regulations). China is the Wild West of industrialism, where laws and regulations are flaunted as natural as breathing air. Once China becomes known for being a lawful society, then I will trust them a fair bit more.

Wed, 02/22/2012 - 19:49 | 2187029 Irish66
Irish66's picture

Thank goodness our tax dollars created american jobs. I can sleep tonight.

If I have to add sarc/ tag to this, you are already dead.

Wed, 02/22/2012 - 19:53 | 2187043 swissaustrian
swissaustrian's picture

I'm sure AmeriKan politicians will find a way to prevent a manufacturing boom in the US...

Thu, 02/23/2012 - 05:17 | 2188330 Kobe Beef
Kobe Beef's picture

Are you saying bribing politicians through campaign funding to push the globalization/outsourcing agenda doesn't create American jobs?

Why, think of all the Bag Men who would be unemployed, if our tax dollars weren't so hard at work.

Cheers, Beef

Wed, 02/22/2012 - 19:50 | 2187033 Manthong
Manthong's picture

Geez, I wish Pandora would cross her legs for a while.

Wed, 02/22/2012 - 19:53 | 2187042 Rainman
Rainman's picture

Won't be long before Wally Mart goes into the retail car biz

Wed, 02/22/2012 - 19:53 | 2187045 Bill D. Cat
Bill D. Cat's picture

One of these days they'll master basketball and we're truly fucked .

Wed, 02/22/2012 - 19:59 | 2187061 swissaustrian
swissaustrian's picture

They only care about ping pong.

(By the way: The US has tried to educate some classy soccer players for decades now, and the best they got was Landon Donovan)

Wed, 02/22/2012 - 20:26 | 2187152 BLOTTO
BLOTTO's picture

Hristo Stoichkov = solid footballer.

Wed, 02/22/2012 - 19:59 | 2187066 Cheesy Bastard
Cheesy Bastard's picture


Wed, 02/22/2012 - 20:04 | 2187083 Bill D. Cat
Bill D. Cat's picture

Linsane .

Wed, 02/22/2012 - 19:54 | 2187048 ArkansasAngie
ArkansasAngie's picture

As a small VC ... I'm looking for small product start ups.

With the price of oil going up the cost of shipping do dads of no value will get harder to justify.

Wed, 02/22/2012 - 20:00 | 2187071 Robslob
Robslob's picture

On regarding the Fed and Yahoo headline of the Century:

Burned before, Fed officials cautious on rebound exactly did the Fed get burned...oh, by being wrong not by being....







Wed, 02/22/2012 - 20:15 | 2187116 Clockwork Orange
Clockwork Orange's picture

Burning them may be the only truly effective answer.

Wed, 02/22/2012 - 20:00 | 2187072 Let them eat iPads
Let them eat iPads's picture

I wouldn't drive a Chinese car if you paid me.

And why are democratic countries still doing business with this god awful totalitarian shithole?

Wed, 02/22/2012 - 20:34 | 2187181 LetThemEatRand
LetThemEatRand's picture

The Chinese don't build a better product, but they do build a similar product for far less cost due to low wages, no labor laws, and no environmental laws.  We have free trade with them because the CEOs who control the planet make bonuses based on short-term gains resulting from the brilliant idea of moving plants there.  They don't care that they are destroying the Western middle class in the process, because they only worry about next Quarter, and they figure there will be more overall world consumers to make up the difference anyway.   The oligarchs could care less about the totalitarian nature of the governments with whom they do business, so long as they are oligarch friendly.

Wed, 02/22/2012 - 21:07 | 2187291 itchy166
itchy166's picture

They build a cheaper, inferior product.  They build crap, and you get what you pay for.

Wed, 02/22/2012 - 21:41 | 2187433 LetThemEatRand
LetThemEatRand's picture

True today.  But our friendly big company CEO oligarch class is gradually handing them the technology to make equivalent quality while the CEOs generate sufficient wealth that they no longer need to care.   Meanwhile, the openly centrally controlled econony with virtually endless cheap labor keeps the Chinese middle class from achieving anything like the success of the American or European middle classes.  

Thu, 02/23/2012 - 00:17 | 2187813 prole
prole's picture

This is a circle-jerk of faux elitist anti free-market statist stupidity.

Chinese stuff is awesome. A hundred trillion Americans pour into Walmart with wads of money so they can freely purchase Chinese gear. I'm one of them. Most ZHers are probably in there too. In no way shape or form do we have anything close to or resembling free trade with China. They are not allowed to send cars.

Probably not allowed to send boats/small arms/mobile and prefab homes but am not sure.

If you do not care for Chinese products the honorable course would be to not spend your dollars on same and shut your yap. I don't care for statism Marxism Trotsky Leo Strauss and your other gods either.

Thu, 02/23/2012 - 00:33 | 2187850 LetThemEatRand
LetThemEatRand's picture

Even Santorum's [evil] God thinks you are an idiot.

Thu, 02/23/2012 - 04:11 | 2188149 Gavrikon
Gavrikon's picture

God is not evil.  He must be good to see the truth in what you said.

Other than that, you are 100% correct.

Thu, 02/23/2012 - 02:12 | 2188001 StychoKiller
StychoKiller's picture

What carest thou, oh mighty bidness man?  After all, you're making yer bonez and tacitly supporting the system you're citicizing.  WHY can't you get yer Big Brother to correct these inequities?

Wed, 02/22/2012 - 21:42 | 2187439 Stack Trace
Stack Trace's picture

Dude stop being so rational. You might kill people's beer buzz.

Honestly, though after interacting with many small business clients over the years I have realized most business owners are...idiots. They are too ignorant to understand when they lack the compentency to evaluate a given scenario and often carry the same elevated sense of self-importance that the oligarchs do. So we have a bunch of half-wits thrashing around in this cluster-fuck rigged market-place wasting resources an time. Not hard for the Chinese to win against that.

Wed, 02/22/2012 - 21:53 | 2187468 LetThemEatRand
LetThemEatRand's picture

The Chinese are winning because they are selling out their people and their environment for a quick buck.  If you run the country and/or the factory, you can afford clean water and clean air and you spend most of your time in the areas that are kept nice for the ruling class.  Everyone else can just go suck it.    NWO.

Thu, 02/23/2012 - 01:19 | 2187927 LasVegasDave
LasVegasDave's picture

The chinese are winning because it only costs $3,000 to build a vehicle and doesnt require union labor.

and Chinese workers would rather have money to buy food than ultra safe working conditions.

They also dont mind 12 hour work days or being around chemicals that might give them a rash.

But they are fucking stupid, after all, and need agitators to educate them about their rights.

After you chase capital out of China, it will land in burma, then africa (take your pick) then finally back to detroit.

capital doesnt discriminate; only assholes like you do when you try and stop people from acting in their own self interest.

Thu, 02/23/2012 - 04:09 | 2188144 Gavrikon
Gavrikon's picture

Well and succinctly put.  One my say essentially the same thing about the importation of cheap Asian IT "expoerts" and the offshoring of many high tech operations.

Thu, 02/23/2012 - 11:53 | 2189160 Ag Star
Ag Star's picture

What kind of idiot are you.  They do business with China because China makes everything and is the worlds largest creditor --the US is the largest debtor nation ever to exist on planet earth.  Don't hate the player baby--hate the game.

Wed, 02/22/2012 - 20:02 | 2187077 Gomie
Gomie's picture

Why not come here? We could certainly use some jobs:

PRINCETON, NJ -- The U.S. unemployment rate, as measured by Gallup without seasonal adjustment, is 9.0% in mid-February, up from 8.6% for January. The mid-month reading normally reflects what the U.S. government reports for the entire month, and is up from 8.3% in mid-January.

Wed, 02/22/2012 - 20:37 | 2187185 LetThemEatRand
LetThemEatRand's picture

As soon as the U.S. worker has been sufficiently beaten down to accept lower wages and zero benefits/no chance of retirement, the manufacturing jobs will return.   Welcome to the New World Order.

Wed, 02/22/2012 - 20:02 | 2187078 A Lunatic
A Lunatic's picture

Pandora shmandora, a Volt in every garage I say..........Roll out the subsidies.....

Wed, 02/22/2012 - 20:26 | 2187155 Esso
Esso's picture

I wouldn't drive a Government Motors car if you paid me.

Wed, 02/22/2012 - 20:55 | 2187245 itchy166
itchy166's picture

Yup, I would rather walk than buy a Volt.

Wed, 02/22/2012 - 21:14 | 2187330 Big Corked Boots
Big Corked Boots's picture

Bumper sticker: "I'd rather push a Ford than drive a Chevy."

Disclosure - I've had Fords for 30 years, and I've pushed a few that were made in the 70's.

Wed, 02/22/2012 - 21:50 | 2187460 LetThemEatRand
LetThemEatRand's picture

The Pinto gas tank could have been fixed for $11/vehicle before a single person burned to death.   They.  Don't.  Give.  A.  Shit. 

Wed, 02/22/2012 - 22:43 | 2187582 A Lunatic
A Lunatic's picture

The only way to truly fix a Pinto would have been to throw it away. That thing was a "mechanics special" right off the assembly line.

Wed, 02/22/2012 - 22:46 | 2187589 LetThemEatRand
LetThemEatRand's picture

But they sold 12 million of them.  And a lot of people died horribly due to corporate greed, plain and simple.

Thu, 02/23/2012 - 00:22 | 2187828 prole
prole's picture

"Corporate Greed?"

Are you Michael Moore or the Dear Leader? Why don't you carry your Commie ass to North Korea? No corporate greed there friend. No Pintos.

If you don't like Pintos, don't buy one problem solved. I would rather have a Pinto right now than anything GM has made since 1970.  In fact, if you give me a good condition working Pinto I'll gladly drive it every day.

Thu, 02/23/2012 - 00:19 | 2187820 Non Passaran
Non Passaran's picture

What else could have been fixed to make it a truly expensive car?
The only thing that was needed was public sats about accidents. That would have sufficed.

Wed, 02/22/2012 - 20:02 | 2187079 bigwavedave
bigwavedave's picture

About time Bulgaria got some technology transfer..... Next up an Audi lookalike for $10,000 :-)

Wed, 02/22/2012 - 21:36 | 2187413 smiler03
smiler03's picture

Volkswagen did a helluva job turning round Skoda of the Czech Republic from 1991 so you may be right!

Wed, 02/22/2012 - 20:04 | 2187084 eddiebe
eddiebe's picture

The race to the bottom comes to your neighborhood.

Wed, 02/22/2012 - 20:15 | 2187110 Caviar Emptor
Caviar Emptor's picture

I recently opened a fortune cookie plant in Belarus with zero-interest loans from the US and sales to China. Someone found 6 trillon dollars in Treasury bonds in a shipment we made to Italy

Wed, 02/22/2012 - 20:27 | 2187158 Viliam
Viliam's picture

I recently opened a fortune cookie and it says: That wasn't chicken...

Wed, 02/22/2012 - 21:48 | 2187456 Caviar Emptor
Caviar Emptor's picture

At my Senate racketeering hearing one senior senator asked how much I made last year.

My answer: A fortune...cookie 

Wed, 02/22/2012 - 20:16 | 2187117 Cheesy Bastard
Cheesy Bastard's picture

I can't wait to see how much the new Hummers are gonna cost.

Wed, 02/22/2012 - 20:29 | 2187165 Caviar Emptor
Caviar Emptor's picture

Hummers are sooo 1999. 

As a wealthy guy who likes to be first on the block with oversized vehicles, I took delivery of a Caterpillar 797F (14-foot tires). I take the family out to dinner in it. Love watching the valet parking dudes with their eyes buggin out :-)

Wed, 02/22/2012 - 20:40 | 2187194 Cheesy Bastard
Cheesy Bastard's picture

Nice.  I hope you got the one with the 4,000 horse power engine and 1,800 gallon tank.

Wed, 02/22/2012 - 20:43 | 2187207 Caviar Emptor
Caviar Emptor's picture

Yeah. I don't beleive in peak oil so I'm not concerned about the mileage

Wed, 02/22/2012 - 21:16 | 2187341 Big Corked Boots
Big Corked Boots's picture

So, not only are you long miners, but you're long mining trucks?

Wed, 02/22/2012 - 21:46 | 2187450 Caviar Emptor
Caviar Emptor's picture

Long crude since my own personal gasoline consumption is 1,800 galons per trip to dinner

Thu, 02/23/2012 - 21:48 | 2191442 Cathartes Aura
Cathartes Aura's picture

dude, bio-diesel!

there's bound to be at least a  dozen fast food fryers in town you can pull 'er up to!

(+ many for the laffs)

Wed, 02/22/2012 - 20:19 | 2187132 RS2OOO
RS2OOO's picture

More ironic will be the fact that the Chinese could open European factories building fake European cars.

BMW lost a lawsuit against a Chinese company for manufacturing and selling cloned BMW X5's after a Chinese judge ruled that car looked nothing like an X5. This is one of many similar cases.

Are there any similarities between the X5 and the CEO? You decide:

Wed, 02/22/2012 - 20:39 | 2187190 Esso
Esso's picture

Yeah, I see the similarities. It's got 4 wheels, lights, a steering wheel, windows, doors, the whole works.

We better nuke China ASAFP.

Wed, 02/22/2012 - 20:41 | 2187200 Caviar Emptor
Caviar Emptor's picture

And a Chinese company is suing, claiming that Apple copied it's I-Pad. It wants exclusive selling rights in Shenzen. 

Apple Loses iPad Infringement Suit In Guangdong: Is It Time To Panic Yet?

Thu, 02/23/2012 - 00:50 | 2187886 trav7777
trav7777's picture

nope.  Just call it the "pad" instead of iPad and let the chink company make their own ipad without an apple on it.

Chinese aren't stupid enough to think it is the same thing.  It's a TRADEMARK, not a patent.

Thu, 02/23/2012 - 02:18 | 2188008 StychoKiller
StychoKiller's picture

The Chinese are making up their own rulez, how is that any different than what the ECB is doing in Greece?

Wed, 02/22/2012 - 21:20 | 2187356 FeralSerf
FeralSerf's picture

It said it was an Italian judge, not a Chinese judge.

Wed, 02/22/2012 - 20:20 | 2187135 Dr.Vannostrand
Dr.Vannostrand's picture

Sweet, time to set up the BAW (Bulgarian Auto Workers)! I'm sure our union chief thugs have nothing on the dudes waiting to "represent" those workers.

Wed, 02/22/2012 - 20:21 | 2187136 carbonmutant
carbonmutant's picture

Can Greece be far behind?

Wed, 02/22/2012 - 20:21 | 2187138 Rynak
Rynak's picture

There ought to be two global stats, tracking low-to-middleclass REAL wealth (take metals + commodities + stocks - each counting 33%.... yeah, not safe to be accurate, but hard to scew all of them), as well as total availability of job HOURS / individual..... ought to put a clear picture on where stuff globally is heading.

But no, can't have that.... not as useless and easily manipulable as say, GDP.

Wed, 02/22/2012 - 20:24 | 2187144 New American Re...
New American Revolution's picture

So, what you're saying is that China, without its yuan trading at 1/5th value, it can't even compete with Bulgaria?   Sweet Baby Jesus, if America had shown up on January 1, 1994 and told China to stuff their 50% depreciated over-night devaluation of the yuan: a policy mind you that Washington D.C. says is getting worse, but which has devalued its worth by another 130% since 1994: In which case America would have kept all her jobs and China would have gone some kind of revolution because her military/commie leadership has been stealing the own people blind since 1946.   But let's talk about the workers nirvana... that's right, VIETNAM!!!   Here, anyone can contract Avian Flu.  

Seriously, the only ones who made out on the China deal were the 2B2Fails and televisions sapping any surplus brain power in America and rendering the general public, societal imbeciles.   Do you want to know how America's ruling elite took us over?  

"Wouldn't you like another ice-cream cone....(sucker)?  

That's right, they bribed you.  And now they're running out of money, so they're watering it down like unsweetened kool-aid hoping you don't notice, but you do, and deep down they really know that but gave up giving two shits about it a long time ago.   

Do you think you're stupid?   Because if you don't, they do.  

Wed, 02/22/2012 - 20:38 | 2187186 Caviar Emptor
Caviar Emptor's picture'll frighten the children

Wed, 02/22/2012 - 20:53 | 2187243 slewie the pi-rat
slewie the pi-rat's picture

And while this may be merely the proverbial canary in the Bulgarian coalmine for now, it will soon be followed by a murder of crows and then a kettle of vultures.

i'm gaggling like a goose!

Thu, 02/23/2012 - 21:53 | 2191454 Cathartes Aura
Cathartes Aura's picture

I gave the post 5 stars for that line alone. . . a kettle of vultures. . . classy.

Wed, 02/22/2012 - 20:56 | 2187250 Missiondweller
Missiondweller's picture

Hear that Greece?


I smell opportunity!

Wed, 02/22/2012 - 21:07 | 2187285 Jumbotron
Jumbotron's picture they are hollowing out their manufacturing base. 

Which means they are starting to feel the effects of wage inflation which is why they are beginning to outsource....

Which means that before long no one can afford all those properties built in 48 hours (that's the one's occupied much less the entire cities without a soul in them)

Which means bank default bitchez

Which means margin calls to

1-800-BRO-KEUS ext.A

The Ponzi is coming to an end

Wed, 02/22/2012 - 21:25 | 2187374 Rynak
Rynak's picture

That so called "bailouts" are even needed, should ring alarm-bells from a ponzi-pov.

Consider this: You control wealth distribution via currencies. You control gov policies. You are in theory in a position, to create the perfect "wealth-farming"-environment for yourself: Sucking from hosts, yet keeping them alive to produce..... basically LETTING OTHERS WORK FOR YOU.

How for fucks sake is it neccessary for oneself in such a position, to demand that hosts "bail out" you, or outrightly killing them to extract as much as you can? Answer: You fucked up real good, your greed knows no bounds, or both.

The ponzi has failed at "efficient (and sustainable) parasitism"... and now they hope that you once again will make it right (or wrong, depending on the POV).

Wed, 02/22/2012 - 21:13 | 2187321 whateverwhatever
whateverwhatever's picture

I saw my first Great Wall truck while in Rome over the summer. GW has been exporting to the EU even before establishing a beach-head in Bulgaria. Took a peek inside the GW. Looked no different in build quality than a Japanese truck. Who knows? Maybe it drives like crap and will fall apart in three years. Mid-late 1960's/early-mid 1970's Japanese cars lasted two winters in the Northeast US given their thin cheap steel and absolute lack of rustproofing. Give the Chinese a decade and a half of QC improvement and they'll be up to Camry or Civic standards.

Sure, there'll come a point when the Walmart gravy train of cheap crap will end. Then'll be the time to push the panic button, as there'll be no amount of stimulus money to counteract a dry-up of Chinese tchotchkes. Sure, there might be employment saturation and an eventual wage wall in certain sectors of the Chinese economy. Still, there are 330 million living in the EU and 1 billion + in China. China will always have more than enough peasants for the sweatshops, but will certainly run out of Bulgarians eventually.

Wed, 02/22/2012 - 21:35 | 2187411 Sandmann
Sandmann's picture

Great location - no car industry and their last major effort was assembling Moskvitch cars which were the absolute epitome of dire rustbuckets.  The Chinese should be able to offload a few to Bulgarians who probably cannot afford real cars. The Chinese will be a marginal player - the car industry has huge overcapacity in Europe

Wed, 02/22/2012 - 21:42 | 2187437 zebra
zebra's picture

next step: blood iPhone5 Made in Bulgaria

Wed, 02/22/2012 - 22:21 | 2187519 ebworthen
ebworthen's picture

Oh great, Chinese Yugos built in Bulgaria funding the Chinese sub fleets based on stolen U.S. designs.

Thu, 02/23/2012 - 03:42 | 2188087 putaipan
putaipan's picture

rhino horns and kleptosterone baby!

Wed, 02/22/2012 - 22:32 | 2187558 adr
adr's picture

Most of what is left of US manufacturing is obsolete by 50 years or more. In order to open factories of the scale needed to produce consumer goods, we would need to import Chinese laborers to teach American show to do the work.

The USA has no manufacturing base, no real ability to work on machines, and no knowledge of manufacturing processes. We would need to build factories to build production equipment.

The few remaining textile mills in the USA are using equipment that is on average 60 years old. Some machines are upwards of 90. They are so old there are only two technicians left in the USA qualified to fix the machines if they break. There is no reason fro anyone new to learn how to fix the machines because there would never be enough business left to make a living. New computerized knitting machines are only availble from China or Germany. The US mills won't buy them because they are not compatible with the old systems. There also is not enough business to warrant investing in new machines.

An American manufacturing renaissance is a fools dream. Wage parity could happen around $8.00 an hour. How far would home prices need to fall to become affordable at that income level?

Wed, 02/22/2012 - 23:27 | 2187682 Rynak
Rynak's picture

If that is true, my answer in an utoptian world would be:

Partnership with germany. They have the knowledge but an absence of "simple" domesitc market. You have the "simple" domestic means (AND land), but not the knowledge. Over time, in an utopian mutualistic relationship, you both would begin to learn from each other's past failures, and become mostly selfsufficient nations "tradting" mainly unexpected surplus and deficit.... and in terms of political levegage, it is not as if you're small scale, if you'd efficiently and with a longterm outlook mutually use leverage for mutually strenghtening your domestic markets...

...but of course, that is only "utopic" and does not account for elitist lobbies, greed, stupdity, gullbiility and a host of other things.... so i'm sorry, it appears the odds are stacked against former enemies becoming mutual allies.

The same could be said for most of the core-periphery relationships inside europe by the way. Can't benefit each other mutually - must fuck each other over, for the sake of benefit of financial 3rd party parasites.

Wed, 02/22/2012 - 22:56 | 2187607 HungrySeagull
HungrySeagull's picture

Datsun early 70's ALL OVER AGAIN.

Geesh, wasn't those little trucks that can do on very small?

Regarding technology, there are only a few holdouts.

Steam power for example. Same as Sail and other trades long gone. You could use a CASE Steam tractor to farm or cut wood, but... your output will be so small versus what a Modern Harvester can do.

If I am not mistaken, the old IOWA Class Battleships had engines on a very mass scale precision. The technology which built them do not exist anymore.

Even a Aluminum Plant I know of was forced to shut down and stop making the stuff after the power bills literally burned up all the profits and put them into debt.

Wed, 02/22/2012 - 23:01 | 2187623 williambanzai7
williambanzai7's picture

The cost of shipping cars with increasing energy costs is also a long term planning concern. And the Chinese think very long term.

Moreover, there is extreme over capacity in the global market for second tier auto.

Wed, 02/22/2012 - 23:18 | 2187668 valkir
valkir's picture

I want simply to remind the idiot who states,that Bulgaria is not Europe.13 centures ago,there was not country of France,England or Germany.But there was country named Bulgaria.Yes,the same name,the same place.Too sad bulgarians were pushed to austerity long time ago,from IMF.Watch Greece now,see what happend to my country 20 years ago...

Thu, 02/23/2012 - 00:01 | 2187774 Atomizer
Atomizer's picture

My new purchase of a BMW 2013 M5 model should be cheaper.. LOL

Thu, 02/23/2012 - 00:11 | 2187798 Stuck on Zero
Stuck on Zero's picture

I recognize that factory.  That's the one where they take freshly built cars from China, screw on a gas cap and put a price sticker on the windshield.

Thu, 02/23/2012 - 01:30 | 2187942 rosethorn
rosethorn's picture

Transportation costs.  Due to oil prices Chinese companies are better off building the product in Europe.

Thu, 02/23/2012 - 03:22 | 2188071 Olympia
Olympia's picture

Those who won all battles shall lose the war.

Bilderberg Group and the crimes against humanity.


This is how things work in all countries. Whatever used to belong to their people, today it belongs to the multinational companies of the Club. People were betrayed by their given leaderships and they lost everything. Capitals and markets were handed to the Club bosses. If you understand what is going on in Greece, you can understand what is going on in Britain, France, and Germany etc..



Thu, 02/23/2012 - 04:02 | 2188115 AnAnonymous
AnAnonymous's picture

So eery so many of so well educated and trained US citizen traders and the rest see high end products as the future markets. Ah, no, not once you factored in US citizenism.

For a long time now, through theft, US citizens have subsidized their own consumption of high end products. Not sustainable.

Very to develop and sell high end products as long as buyers show up.

As the large transfer of wealth conducting by US citizens is drying out (not enough resources to wire up and drain), the demand for actual demand for high end products will decline, giving room for middle and lower quality products.

What matters is to drive from A to B.

Thu, 02/23/2012 - 04:03 | 2188128 AnAnonymous
AnAnonymous's picture

It is been quite a long time now (more than one decade) that China is no longer a place to buy cheap labour.

But hey, kicking the can, natural to US Citizens...

Thu, 02/23/2012 - 04:51 | 2188240 Bulgaria agains...
Bulgaria against banksters's picture

Bulgaria may be the poorest EU country, but people here are hardworking, mostly educated, knowing 2+ foreign languages, bulgarian engineers, scientists and IT specialists are highly appreciated all over the world. One can not judge for a country based only on the salary, Greece is the best example. Nevertheless we survived a 45 years of communism, followed by hyperinflation and bank crash which vaporazed all peoples savings, during that times greeks took 400 bilion EUR loans and wasted them for fat sallaries, bonuses and early retirement. Should we feel guilty that we are poor and chinese companies are investing in our country? Maybe we should choose the greek way of "development" to gain international respect?

Thu, 02/23/2012 - 06:27 | 2188433 Catequil
Catequil's picture

Don't take comments here too hard. Truth is, that the West knows very little to none about Bulgaria.

Thu, 02/23/2012 - 07:58 | 2188487 silverbullion
silverbullion's picture

True, I've met wonderful Bulgarians, salt of the earth.

Thu, 02/23/2012 - 08:00 | 2188488 silverbullion
silverbullion's picture

I agree with you for most part, but why drag the Greeks into it?

Thu, 02/23/2012 - 08:13 | 2188501 Ghordius
Ghordius's picture

because he is right - he is making a point comparing two countries that share many similarities, know each other quite well, but had uttlerly different trajectories in their history.

Thu, 02/23/2012 - 08:38 | 2188526 miltiadis
miltiadis's picture

Greece shares many similarities with Bulgaria? ahhahaha

Thu, 02/23/2012 - 13:53 | 2189656 Bulgaria agains...
Bulgaria against banksters's picture

Why drag the Greeks? These are the Balkans...We have a long history together with the greeks, turks, serbians. Its been always a competition between us and I cant say that I am happy for what happens in Greece, but I have expected something like this to happen with our neighbours. Because it was just incredible to see and believe how rich they have becommed! And so fast! Bulgarians emigrated there with thousands, some just went there to work in farming, childcare or tourist service and get 3000 EUR per month, when the average salary here is 300 EUR. 30% of the banks operating in Bulgaria are greek, we have a greek mobile operator, even IKEA... with 2 words "big capital." It was not always like this, we know greeks, they have cheated BIG TIME, not for the first nor for the last... I feel kind of frustrated that all you guys arround the world  picture Greece like developped and Bulgaria as 3rd world country. Our biggest problem however is not Greece of course, its called corruption, taking it the easy and quick  way until it gets so horrible than work your ass till you die for compensation... this is the Balkan way. 


US factories, russian factories, chinese factories... all are welcomed here :)

Thu, 02/23/2012 - 04:55 | 2188247 Martin W
Martin W's picture

I would prefer an old VW or Audi than a brand new Chinese perpetum mobile.

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