To the Editor:
I read with great interest and great sorrow the March 17 article on the pressure General Motors is putting on its suppliers to move work to "low-cost countries" ("GM to suppliers: Look at Korea, China") - great interest because I work for a Tier 1 automotive supplier; great sorrow for the same reason.
Something that seems to escape the large stockholders and high-placed and well-compensated executives of American industry is that as we push manufacturing to those so-called low-cost countries, we are taking income from the very consumers that those companies depend upon to purchase their products.
Henry Ford knew all too well that if he was going to build automobiles in volume, there had to be consumers with enough income to purchase them. That's why he paid his workers so well.
I fear that the newly employed workers in those low-cost countries will not be compensated well enough to purchase the vehicles for which they are building parts. The newly unemployed workers in this country will no longer be able to afford to purchase those vehicles.
Suddenly, the group of people with enough disposable income to purchase mass produced automobiles will include only the large stockholders and high-placed and well-compensated executives of American industry.
That group can buy only so many cars.
The rest of us will be serving each other fast-food hamburgers for enough money to buy cars built in low-cost countries.
Do you ever wonder why sales of Kias and Hyundais are growing so fast?