New Chrysler CEO looks to China

During his visit to Mexico last week, Tom LaSorda, the next CEO of Chrysler, made it clear what he considers to be a major threat to the U.S. Auto Industry. LaSorda's biggest concern is the competition coming from Asia in the next 5 to 10 years. He specifically mentioned the Chinese automotive industry as part of that threat. Nearly every automaker is pouring billions into the automotive industry in China in hopes that they can capitalize on the explosive market there. Many are also keeping a keen eye on export possibilities, because with the low cost of labor there assembly costs are very low. Competition from native Chinese companies is also a concern. With most auto makers operating on very slim margins or even losing money, competitive pressures to leverage low-wage labor in China is making it a matter of survival to go into business there.