Letter from an auto worker

The assault on U.S. autoworkers is also being felt by people who work for auto suppliers throughout North America.

A study just released by A.T. Kearney Inc., a management consultant firm in Southfield, Michigan, predicts that auto suppliers will lose $50 billion in the next three years.

This annual study concludes that nearly 30 percent of the 105 largest auto supply companies traded on Wall St. are considered to be in a dire financial position. Many of these companies will likely go out of business or into bankruptcy

While the study reflected concern for the profitability of these corporations, and not the workers, it is well known that employees at auto suppliers American Axle and Manufacturing, Visteon Corp. and Delphi Corp. have made numerous concessions to keep their jobs.

U.S. car and truck sales are likely to be down by 2 million vehicles next year compared to 2007. This will cause a reduction in the labor force and continued company pressure to cut production costs by the remaining workers.

Keeping the failing suppliers from going into bankruptcy would require a massive infusion of cash to keep these companies solvent. However, the study indicates that suppliers could not depend on raising money from banks or capital markets. Also, it is unlikely that companies in India or China would be interested in buying U.S. suppliers or automakers.

As the U.S. economy continues in a downward spiral, the future of the auto and related industries is bleak, and without organized struggle workers risk being discarded like a tool that is no longer useful to the company.

–Lloyd Clarke, former autoworker
and activist, UAW Local 668.