Ford shifting all U.S. small-car production to Mexico


#1

Ford plans to eventually shift all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors Tuesday, even though the company’s production investments in Mexico have become a lightning rod for controversy in the presidential election.

“Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States,” Fields said at a daylong investor conference in Dearborn.

freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/


#2

One might reasonably wonder whether this will result in lower car prices or simply more net profits for the company. After all, if European and Japanese car makers establish plants in the U.S. and still make it work, what is the compelling reason for Ford to move much of its production to Mexico?

Personally, I would much prefer to see Ford build these cars in Detroit or Flint and hire some of those inner-city people at good wages.

But that’s me.


#3

I wonder if Ford is targeting more of an international market with their small car. If so, lower production costs would allow lower pricing and greater market share. Some tarrif on US imports would also be appropriate IMHO.


#4

I agree!


#5

The Detroit automakers lose money on the small cars it sells in the US. Moving production to Mexico is an attempt to break even or perhaps turn a profit on those cars.

But Ford is not alone in moving auto production to Mexico.

Ford isn’t the first automaker to move small car production out of the U.S. Mexico has become an auto production Mecca for new industry investment, surpassing Canada in annual automotive production.

In recent years, automakers that include General Motors, Honda, Hyundai, Nissan, Mazda, Toyota and Volkswagen have announced plans to either expand existing plants or build new ones in Mexico. Fiat Chrysler Automobiles also has said it is considering an expansion of its production there.

The number of auto jobs in Mexico reached 675,000 last year, a 40% increase from 2008. U.S. auto jobs increased 15% over the same period to more than 900,000, according to the Center for Automotive Research in Ann Arbor.

freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/


#6

Maybe they want to make the move before they have to, according to Donald Trump, do what they will have to do themselves. Classy guy that Trump. What a model to represent America. Either that or I suppose an embarrassment depending on one’s POV.

youtube.com/watch?v=m8MhkheHJvM


#7

Maybe they want to make the move before they have to, according to Donald Trump, do what they will have to do to themselves. I won’t risk the video on a family site. But classy guy that Trump. What a model to represent America. Either that or I suppose an embarrassment depending on one’s POV.


#8

I suppose this is better than discontinuing an entire division like Pontiac, etc. I only wish some of them had shifted their production or assembly lines.


#9

This man in Juarez, Mexico, who works for the Auto Industry making air bags at a Auto Supplier factory, states that he makes the equivalent of 6 Euros per day, or $6.72.

According to this recent Global 3000 program, from DW TV, a typical U.S. Automotive Industry worker makes three times that in one hour (at 6:05 in the opening story of the video).

Global 3000 - The Globalization Program

Some 3,200 free trade agreements exist worldwide. The North American Free Trade Agreement, which came into force in 1994, is one of them. TTIP (Transatlantic Trade and Investment Partnership) opponents say NAFTA’s repercussions show that their doubts are justified.

dw.com/en/global-3000-the-globalization-program-2016-08-22/e-19457392-9798


#10

Were there really that many differences between Pontiac and Oldsmobile and Buick? Between a Firebird and a Camaro?


#11

It is my understanding that a good part of small car production is an industry way of meeting CAFE standards, under which mileage is averaged over the entire fleet. The bigger cars, pickups and SUVs, which are profitable, do not, of themselves, meet the standards and probably can’t ever meet them.

So it’s not beyond the realm of possibility that the move to Mexico is the result of just one more government ideological boondoggle. Now that there is an oil glut, we don’t hear about the upcoming “peak oil disaster” anymore. But MMGW is still there to cause government to do things like pose CAFE standards.

But no matter what, the move to Mexico deprives Americans of jobs.


#12

No. But if you weren’t rich enough to buy a Cadillac back in the day, you still felt awfully good in an Oldsmobile.:slight_smile:


#13

Just one example of how an overarching federal regulation can distort an entire industry. I had almost forgotten about the CAFE standards.


#14

Don’t get me started on Oldsmobiles and Buicks. :mad:


#15

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