Many US automotive suppliers have sought bankruptcy protection in the past few years. The Detroit 3 (formerly Big 3) manufacturers have also been in financial trouble. The suppliers are now offering $14 an hour for new employees, compared to the erstwhile standard of $30 an hour. The OEMs are offering buyouts of up to $140,000 to existing union employees in the hopes of reducing their expensive payroll and possibly replacing it with lower wage employees.
As another sign of the transformation of the auto industry, Ford is near a deal to sell its Jaguar and Land Rover brands to Indian Tata, which recently introduced the $2,500 Nano.
For as distressing as these steps are for those involved (and despite the Onion’s seeming prescience) they may indicate an approaching floor in the decline of Detroit.
