Toyota and Honda Face More Strikes in China;

Both Toyota Motor Corp. and Honda continue to face battles with Chinese workers over wages in South China as more strikes continue to delay auto manufacturing and increase tensions for both automakers. Investors are worried about continued problems with the labor forces in China that manufacture Toyota car parts. Other domestic and foreign automakers such as Mazda, whose models can be test driven at a Florida Mazda dealer, and GM, who sells the Chevy Silverado, have been unaffected by the strikes.

The plants that are involved in the Chinese strikes produce auto parts for Toyota and Honda, who are both Japanese automakers. Chinese workers are dissatisfied with wages and working conditions. A local news agency reported one employee saying, "The salary is only 1,300 yuan ($191) a month, including meal subsidies, while my rent costs me 200 yuan a month."

The recent protests have caused the image and reputation of both Toyota and Honda to suffer, which is particularly bad for Toyota, a company that has faced several recent reputation problems due to car manufacturing faults.

The recent protests have come about through suggestions by labor experts in China. A major problem with Chinese auto plants is that the automobile industry in China is highly profitable, but wages have not increased in representation of this profitability.

Chinese workers have been growing dissatisfied in recent years and their wages have increased. China is a source of skilled and low cost labor for many multinational corporations, and it has been stereotyped as such by many. However, the recent protests threaten this image and may result in some businesses moving to other countries for cheaper labor.

The Chinese Communist Party, which is the ruling party of the government is involved in regulation of worker laws and conditions and there are also government controlled unions that can make regulations for Chinese workers.