U.S Swaps Mideast Oil for Asian Technology: GM's Battery-Run Chevy Volt Uses S. Korean Jolt

CINCINNATI (TDB) -- Ohio has invested millions in its Third Frontier program looking for cutting edge tech to revive its auto industry. It might have to wave sayonara. When the new factory to build lithium-ion battery power packs for GM's Chevy Volt electric car opened today on Interstate 75 south of Detroit, the alternative energy source came with South Korean roots. Compact Power Inc., the American unit of Korean battery maker LG Chem, suppplies the batteries. Yes, the Asians are at the forefront of the movement for fuel-efficient electric vehicles. Going green means exporting more greenbacks. As Alisa Priddle notes in the Jan. 7, 2010 Detroit News:

"LG Chem makes the battery cells that will power the Chevrolet Volt and Opel Ampera extended range electric cars, as well as future GM vehicles requiring batteries."

LG says on its website that it's a $14 billion industrial giant:

"LG Chem Ltd. is one of the world's largest producers of advanced chemicals and materials in and a leading supplier of lithium-ion batteries. The $14 billion, Korea-based company employs over 14,000 people worldwide and comprises three primary businesses: chemicals and polymers, industrial materials, and information and electronic materials. Lithium-ion batteries are part of LG Chem's Information and Electronic Materials business and have been identified as a primary growth area for the company. In fact, investment in lithium-ion batteries has grown five-fold over the past seven years.

"As a recognized leader in the development and production of lithium-ion batteries, LG Chem provides expertise, synergies and a respected global brand that adds value to CPI's mission to become the supplier of choice for lithium-ion batteries."

Up in Michigan, Wizardkitten is encouraged that some new jobs have arrived in the Midwest after battery production started today. There is a case to be made that foreign investment is a good thing in this global economy. But wouldn't it be better if a U.S. company was behind the batteries that are supposed to bring us a green economy.

Hillary At Ohio GM Plant: McCain, Bush, Cheney Turn Backs On Blue Collar Workers

WARREN, Ohio (TDB) -- Hillary's knock on the Republicans: "They think America doesn't need to make anything anymore." She campaigned at the giant GM auto complex in Trumbull County today and ripped the Bush Administration over the loss of 3 million U.S. factory jobs. Ohio's share of the toll: Nearly 200,000. She said the GOP's likely nominee John McCain favors trade policies that will continue shipping American manufacturing jobs overseas to cheap labor nations.

"Let's be honest about something. When President Bush and Vice President Cheney say the economy is booming even though 3 million manufacturing jobs have been lost; when they promise to cut the Manufacturing Extension Partnership; when they cut assistance to small manufacturers; when Sen. McCain tells you business as usual on trade is just fine and tells neighboring Michigan workers that we can't bring new manufacturing jobs back to the United States -- they are sending you a clear message: They do not believe America needs a strong manufacturing base.

"They think America doesn't need to make anything anymore. They think those of us who remember how our manufacturers helped defend our freedoms in the great wars are just quaint and nostalgic. They think it would be just fine if every plane, every piece of machinery, every computer, every car were made somewhere else.

"Well let me be clear: I believe manufacturing matters. I believe we should be restoring the Manufacturing Extension Partnership -- not cutting it. I believe a strong America needs a strong manufacturing base -- and I intend to fight for one as president. Some may call this the 'rust belt' but that's not what I see. I see some of the hardest workers in the world. I see great universities and strong communites. I see a 21st century manufacturing belt. An innovation belt. An opportunity belt."

The complete text of her prepared remarks at the NE Ohio manufacturing complex is available here. Trade policy, globalization, NAFTA reform and the disappearance of Ohio's factories promise to to be recurring themes of both Obama and Clinton from now to March 4. Later today she's speaking about the foreclosure crisis. In Ohio, it's the economy, stupid.

PsychoBobby Cadillac: Dylan Working On GM's Farm Selling Escalades

CINCINNATI (TDB) -- They hand you a dollar, they hand you a dime, and next thing you know you are selling cars for General Motors. Bob Dylan has become the official pitchman for Cadillac, the luxury car brand that has long symbolized American excess. This means that the 1960s are over. Or maybe they never happened.

Negative Jolt For Ohio Economy: GM's Volt To Be Built In Michigan

CINCINNNATI (TDB) -- The Detroit Free Press is reporting the new UAW/GM labor pact has driven a stake through the heart of Ohio's hopes for landing the new Chevy Volt electric car for Lordstown's manufacturing complex. More on the story from Crain's Detroit Business.

Up until this weekened, there were a steady stream of hopeful but unconfirmed reports since Spring that the Volt would roll off assembly lines in Ohio around 2010. Even Lordstown officials had said they heard whispers the Volt was coming to Ohio. Instead, it appears certain that GM is going to produce the new vehicle -- which is supposed to position to the automotive giant for a green, less petrol-dependent economy -- in Hamtramck, an old manufacturing community that is completely within Detroit's city limits. GM has a plant that assembles Cadillacs and other large models there now.

AutoBlogGreen has more and says GM loves Detroit, its hometown.

Ohio's Good News From Japan: Rate Hike Boosts Big 3

CINCINNATI (TDB) -- Domestic automakers hammered by Japanese competitors complained for years that Tokyo manipulates the yen, keeping it undervalued and giving that nation's manufacturers a price advantage. In the Big 3's view, jobs have been lost and states like Ohio and Michigan have suffered dearly because Japanese government monetary policy worked to subsidize its automakers. Now, there are signs of a policy shift in Japan that could have an immediate impact in Cincinnati, Cleveland and Detroit.

Today, the JAPANESE RAISED A KEY RATE and the trade group that represents Ford, DaimlerChrysler and General Motors -- three of the largest employers in Ohio -- all hailed the news from overseas. Ailing and losing market share, they have not had much to cheer about lately. And the reports demonstrate how the global economy is tightly weaved -- a decision at the Bank of Japan rebounds instantly in Ohio, where more people read NCAA box scores than bank rate notes.

From CBSMarketWatch, the word came about the rate hike: "In a statement, the BOJ [Bank of Japan] said that the economy is likely to grow moderately and that it would adjust rates gradually, depending on the pace of economic growth and prices. The change marks the first time the central bank has revised monetary policy since July, when it ended its zero-interest-rate policy and set the 0.25% rate."

Immediately, this came from Detroit's lobbying arm in Washington:

"The following statement was released today by the Automotive Trade Policy Council on the Bank of Japan's decision to raise interest rates: The decision by the Bank of Japan to raise interest rates today from the low rates it has maintained for years is a small but welcome first step toward ending its reliance on subsidized exports from its misaligned currency.

"We encourage the Japanese government to take additional action to rebalance its misaligned currency. American businesses and workers are the victims of Japan's policy of maintaining a misaligned and undervalued yen. Growing sectors of the U.S. business community can no longer accept the closing of U.S. manufacturing facilities and loss of American jobs resulting from Japan's trade-distorting policy. With Japan's GDP growth rate now exceeding 4%, there is simply no reason for Japan to hesitate in taking bold and necessary domestic reforms, and to stop the practice of exporting its economic problems to its trading partners by undervaluing its currency."

The Automotive Trade Policy Council, Inc. (ATPC) is a Washington, D.C.-based nonprofit trade association that represents the common international economic, trade and investment interests of its member companies: DaimlerChrysler Corporation, Ford Motor Company and General Motors Corporation.

Just a year ago, the ATPC told the Senate Democratic Policy Committee that it estimated Japan's carmakers had a $3,000 to $10,000 cost advantage. That seems to have eased a bit today.