“In China, automotive industry workers are striking for higher pay. In the U.S., auto-industry workers are agreeing to pay cuts — and then their employers are being sold to Chinese companies.” Source: Salon.com
Striking for higher pay isn’t the only thing the Chinese are doing. They are also buying sections of the US auto industry.
Bertel Schmitt at The Truth About Cars writes about Chinese investors buying up Western Auto Parts manufacturers. He says that 70% of China’s $160 billion auto-component makers are foreign companies.
It appears that due to the sick global economy, which hasn’t hit China as hard, many of these foreign auto parts companies are hurting as profits shrivel.
Schmitt says that some deals have already been made as Chinese bought Australian gearbox maker Drivetrain Systems International, a supplier to Ford and Chrysler, and GM sold Nexter to a Beijing Consortium who had government backing.
Similar sales took place in 2009, and today struggling U.S. Firms like Delphi, Lear and Visteon may be up for sale soon.
If Chinese investors buy enough Western auto-parts manufacturers, China may add that industry to solar panel and wind-turbine manufacturing along with the country’s monopoly on refining rare-earth mineral necessary for hi-tech products and weapons systems.
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