One More Nail

If you thought that U.S. auto manufacturing was in trouble. Just wait .....

Angry Bear:

Chrysler, in the midst of a private equity buyout, has done a deal with a Chinese manufacturer to manufacture cars for the US market.

Neither the Big 2+1 or the foreign brands (Toyota, Honda, etc.) will be able to compete with labor which will likely cost $10 - $20 per worker per day.

This will not be an overnight phenomena, but I fear this is one more nail in the coffin of US manufacturing in general, not just the auto sector.

Ouch. In time, there'll be no auto manufacturing in the U.S .... that is unless energy costs become prohibitive and counterbalance the labor savings. And that is possible. The international redistribution of wealth is completely dependent on cheap energy. But as long as we can ship water in little petroleum bottles all over the place, this trend of globalization will certainly continue.