Obama's new Jobs Advisor Immelt in 2009: "India Will Be A Centerpiece in Our (GE's) Growth"

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From Forbes India:

The current set of changes playing out at GE India point to a new inflection point. What is it about India that excites you as the CEO of a Fortune 500 multinational?

I have been travelling to India regularly since the early Nineties and have viewed with admiration the developments that have taken place in the country...So we needed to identify other opportunities – especially those that drew on India’s highly educated work force. Today, we are well established in the next stage of our development in India with over 12,000 employees and longstanding partnerships with leading Indian companies..

...

How differently does GE view emerging economies today, especially in the new “reset world” where its own business portfolio is undergoing a change? How does this change manifest in the HQ thinking/expectations from the international business?

India is essential. For GE, winning with India requires a new business model, one in which we are “local” in every sense of the word. That means migrating P&L responsibility and major business functions (like R&D, manufacturing and marketing) from a centralised headquarters to an experienced in-country team that is closest to the action and uniquely in touch with local customers and capabilities. We have established this in India already. With an integrated team, we can develop products and services designed specifically to meet local needs and, potentially, for export to other markets.

More...

Any doubt what this guy means when he talks about increasing the U.S. corporations' "competitiveness?" It's also been reported that Obama will go to Schenectady to hail GE's new deal to make turbines for India. Still think that manufacturing is being done here, or is Schenectady just a set piece to make this appointment of a consummate outsourcer look passable?

[OHdem10]

1. Immelt has promised that every time he outsources he will

also create jobs here.

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2. How exactly will that work?

More magical thinking?

[Donnachaidh]

3. just enough jobs here to garner good PR

But sending the bulk of the profitable (for the company) jobs overseas.

Again, we're being played by the purveyor of *change*.... :puke:

[Enrique]

4. ok, then!

that's good enough for me! :dunce:

[OHdem10]

5. Just before the Presidential election, he opened a plant in

Tennessee as part of his policy.

[Brickbat]

6. What kind of jobs? Is it on a one-to-one basis?

I'd like to learn more.

[TreasonousBastard]

7. The point is to sell stuff to Indians. Should GE just go away and let...

Japanese and German companies build those factories to sell stuff locally?

What, precisely, would you or anyone else suggest be a better path?

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8. What difference does it make how much profit GE is making, if none of that is going to US jobs?

Did you know that GE paid NOTHING in federal taxes for 2009? They deliberately show a loss in the U.S. so they can pay nothing to the government, then "make it up" (and then some) overseas where they pay nothing on it. So not only do they get to cut jobs here and exploit cheap labor abroad to remain "competitive," they also get to shortchange the IRS. Nice game they've got going, isn't it?

http://abcnews.go.com/Business/Tax/ge-exxon-paid-us-income-taxes-09/story?id=10300167

[TreasonousBastard]

10. How do you know there are no US jobs? In these deals quite a bit of stuff is...

often sent to assembly plants after being designed by US engineers and made in US factories and there are all sorts of administrative jobs watching over what they're doing.

Besides, 401K's, pension plans, mutual funds... all have some GE stock. Should our retirees suffer when the stock price falls because GE decided not to make money in India for some bullshit misguided politically correct reason?

The tax thing, btw, is a separate issue. There have been attempts to tax foreign earnings, but that's been tied up with all the other tax bullshit going on.

[Smashcut]

12. Here's how I know:

"Let's look at GE's jobs record. You would have difficulty finding a company that has outsourced more jobs and closed more American factories than GE. While they have slashed their American workforce to fewer than 150,000, GE has dramatically expanded its global presence, now employing over 300,000 workers worldwide. Yes, GE has brought a trickle of jobs back to the U.S. over the past two years, but it still outsources more than it insources."

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x583619

By the way, using the "political correctness" canard tends to undermine your credibility.

[Bluebear]

13. + on the 'politically correct' BS

[TreasonousBastard]

15. Using a HuffPo opinion piece as a source-- and you question MY credibility? How...

do the adults who actually have to solve problems approach this?

First, where are the numbers? Granted that there is some net loss in GE US jobs, but just how many are there? And how many are due to lost contracts, automation and productivity gains, and other things not directly attributable to outsourcing?

The increase in non-US jobs is often to increase sales-- sales that would not have existed if not for those jobs. How many of these are there? How many jobs were outsourced purely to make cheaper products to send back to the US? What has been the net effect, taking into account US design and production of key parts?

Practical problem-- Let's say Embraer has greatly expanded jet plane production and requires lots of engines. Brazil requires a certain amount of local production and Rolls Royce includes a Brazilian factory in its bid. What should GE do if it wants to sell engines to Embraer?

Bonus question-- how does GE's answer affect the US economy and US jobs?

And, there's still GE's stock price and you parents' retirement...

Talking points are easy-- the truth is usually a lot more complicated.

[Poboy]

14. Are you shitting us? This is the 'don't badmouth BP because pensioners who hold stock will be hurt'.

What a crock of shit.

[Bluebear]

16. Thank you.

[somone]

9. Straight from the horse's ass

Neutron Jack's boy

[Poboy]

11. The bait-and-switcher-in-chief.