There's an interesting article on the potential impact of the Chinese auto industry in today's Globe and Mail. It indicates that the Chinese have a huge labour cost advantage in making cars, paying their assembly line workers 83 cents per hour (U$) as opposed to US costs of $73 per hour (U$). The article says that Chrysler has made a deal with the Chinese manufacturer, the Chery Automobile Company, to produce a low cost car ($10,000) that will initially be marketed in Eastern Europe and Latin America and in Western Europe and North America subsequently. Are North American workers worried. Absolutely. "The Chrysler-Chery linkup has worried and angered Canadian Auto Workers president Buzz Hargrove for some time. Mr. Hargrove fears the successful export of small cars will lead to auto makers building bigger vehicles in China and shipping them here."
The article, by Greg Keenan, appears in the Globe's Business Section and is titled "Will Chery be Detroit's new nightmare?" It is sub-titled "Quality car at a low price could shake auto industry to its foundations when it arrives in 2010, analysts say". Ed
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