Monday, May 11, 2009
Tax Funded Head-Start for Low Cost Country Tool & Die Makers
Joe Brown, in his blog, wrote an excellent, fictionalized (I presume) account of what it's like to be laid off, followed by an excellent analysis of why we're losing tooling money offshore and how the car companies are encouraging this.
What if we added that not only were taxpayer funds being funneled to China, the very recipients of these taxpayer funds, (GM, Chrysler and hundred’s of Tier 1 parts manufacturers) gave the Chinese competitors to North American manufacturers a 5-9% cost advantage by paying these Chinese suppliers on far better terms than they would pay say a company in Grand rapids, Detroit or Windsor.
What if we added that not only were taxpayer funds being funneled to China, the very recipients of these taxpayer funds, (GM, Chrysler and hundred’s of Tier 1 parts manufacturers) gave the Chinese competitors to North American manufacturers a 5-9% cost advantage by paying these Chinese suppliers on far better terms than they would pay say a company in Grand rapids, Detroit or Windsor.
Labels: auto, manipulation, manufacturing
