Labor Costs Controlled DeVos Style

Making Money the Chinese Way

Auto parts maker Visteon is up for sale and Wanxiang, China's largest parts supplier, may be interested in purchasing a division or two. Of course company President Lu Guanqiu has already figured out the road to profitability: eliminate high labor costs.

The Chinese have proven quite adept at this. A recent report found Chinese Wal Mart suppliers often pay only half the minimum wage, $.25 per hour vs. the mandated $.58. Worse, they insist on mandatory overtime and shirk their responsibility to provide health insurance to all employees.

I see a very profitable Visteon in the future.

Ain't globalization grand?