Friday,
March 13, 2015:
I was disappointed in the smog this
morning, but I guess it was better than Beijing the first day. The contrast between night and day in
Shanghai is astounding, but I can still definitely appreciate the architecture during
the day. GM started off a little rough
because we had a delay, but we ended up getting off the bus and seeing the
production facility first. I have been
to a Ford plant in the US and it was similar to what I saw there. My first questions revolved around how often
they operate. I wanted to know why it is
necessary that a car be produced so often, and if the company was concerned
about over production and its environmental impact. The man who spoke to us and the University of
Georgia explained that Shanghai GM only produces what they plan to sell, and
that they operate on a made-to-order basis.
The US operates that way, but China keeps 6 days of stock on hand. Shanghai GM reuses as many parts as possible
and recognizes the importance of the different market in China. I find it amusing that for China vehicles
that do not put as many cup holders and they make the back seat bigger so that
the passengers can feel like they are being chauffeured. GM also treats their employees better than
other car companies, which explains why they have a 97% retention rate. The man also explained how Shanghai GM is
actually a joint venture, which means they are paired with a company in China
called SAIC that gives GM access to the government, employees, and the vertical
supply chains located near the plant for quick and efficient deliveries. However, he also mentioned how difficult it
is to negotiate and protect intellectual property in a joint venture, and
explained that GM has to be careful with what information they reveal. I was impressed that 98% of the cars made in
the GM plant get sold in Shanghai as opposed to overseas somewhere. Also, the company is working on a water-borne
paint system to reduce fumes in the new Cadillac that is being built. It was challenging to hear that China’s
sulfur maximum is 350ppm as opposed to 15 and 10ppm in the US and UK. But it is good to know that they plan on
reducing it to 10ppm, and then 6ppm after that.
I would argue that pollution is really holding China back from being the
ultimate successful country it can be.
While China is ahead of the times in technology and some innovation, it
is still stuck in the past where pollution was not treated seriously. Also, China has a lower safety standard than
other countries, but since it costs less money to produce weaker structures, GM
does not exceed those low standards; they do not want to over-engineer where
unnecessary because it costs money, and GM is just as much of a business as any
other company. GM mentioned that Shanghai
GM has such a young labor force, contrary to the aging work force other
companies are struggling with. While
other companies are investing in youthful, innovative projects such as full
automation, GM limits its research and development because they do not want to
work on products they do not have a demand for, which I found interested. Lastly, the reason Buick’s are so popular in
China is because the emperor loved to drive his around and show it off. This is another perfect example of
nationalism in the sense that the people get caught up on basically worshipping
their leaders and trying to follow in their footsteps.
The
city planning hall and the model of the city was surprising. I can barely believe that so many buildings
exist and that the city is still planning on developing. The Shanghai Museum visit was also
interesting because I got to see each type of the culture as it developed—from
costumes to potteries all the way to currency.
The trip is coming to an end—we just
had the closing dinner. The Pitt
graduate that spoke made me want to move here because of how easily she
adjusted. The trip flew by, and the
slideshow of pictures made me realize how many places we all saw in such a
small amount of time. I also realized
how close everyone got. I hope we stay
this close when we get back to Pitt. I
did not enjoy the dinner because like the opening dinner, it was too fancy with
too many delicacies. I tried to taste
the jellyfish and appreciate it, but I guess my taste buds just have not
developed that far yet. The lunch today,
however, was fabulous! I did win the
award for most enthusiastic, which I was not expecting at all. I mean, I know I was thrilled for the trip…
well I guess I was probably most verbalized about my excitement. I am so sad that it is almost over. :(
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