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EXERCISING STRATEGY U.S. Automakers Manufacture Parts Overseas to contain Costs U.S. automobile production has mounted a major comeback, hourly wage to $12.25. She tries to work as much overtime as she can to make ends meet, but the more overtime she but many of the parts used to assemble those cars increas- works, the more day care she has to pay for. Thomas Dipo ingly come from other countries. In 2014, a record $138 billion in car parts were imported, equivalent to $12,135 of nato, the chief human resources officer at Lear, says that the company pays competitive market wages. Indeed, he notes content in every vehicle built. That compares to $31.7 billion in parts imported in 1990 and 889 billion in parts imported that "if our employees couldn't make ends meet, they would in 2008. Why are more and more parts imported? Because demonstrate their dissatisfaction with their feet" by leaving parts can be made cheaper overseas. Mexico accounted for for a better job elsewhere. But, he notes, instead, employee the largest single share (34%), followed by China (13%). To turnover at Lear is only 2%. compete and survive, U.S. parts manufacturers have shifted QUESTIONS production overseas. For example, Detroit-based American Axle has plants in low-wage countries such as Mexico, Bra- 1. As a consumer, what effect does the use of more foreign zil, Poland, China, and Thailand. American workers in the parts have when you look to purchase a new car? parts industry have seen their own wages fall by an inflation- 2. How does globalization in the car parts industry affect adjusted 23% from a decade earlier to $19.91 today in the U.S. workers? What about workers in parts plants in low- face of this low-wage competition. (Wages at U.S. assem- wage countries? bly plants also declined during the same period by 22% to 3. Do you agree with Thomas DiDonato that if workers $27.83.) At one of American Axle's plants, wages start at could not make ends meet, they would leave Lear in $10 per hour, roughly what Walmart recently announced it will raise its starting wage to. At the Lear Corporation parts greater numbers? Why or why not? 4. Should Lear and other automakers pay more? Why of why not? E that supplies seats for a nearby Hyundai car assembly plant SOURCE: J. R. Hagerty and J. Bennett, "Wages Drop as Foreign Purs lavale Just recently, she received a 92% pay increase to bring her American Cars," The Wall Street Journal, March 24, 2015.p. Al EMPARRA MANAGING PEOPLE Reporting the Ratio of Executive Paul P d e o th w O
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Criminal Liabilities
by Robert F

Submission date: 22-Oct-2017 05:39PM (UT C-0400)
Submission ID: 866912739
File name: Criminal_Liabilities.docx (21.35K)
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