Posted on 02/10/2016 5:42:19 PM PST by BlackFemaleArmyColonel
One of the cornerstones of Donald Trump's campaign has been the fact that millions of jobs have been lost to overseas industries because it is often too expensive to do business in America anymore.
Many liberals have criticized Trump for these statements, but the Wall Street Journal recently reported that Ford's latest production move showed that Trump was exactly right.
Ford planned to build a new assembly plant in Mexico in order to produce 500,000 more vehicles in Mexico than it currently does. Last year Ford's Mexican output was 433,000 vehicles, which translates to about 14 percent of its total production in North America. This deal had not been publicly confirmed and a Ford spokesperson simply stated, "We do not comment on speculation," when asked about the company's plans for Mexico. Mexico has become a serious competitor in the car-making market with "low wages, improved logistics and an arsenal of free-trade deals," the Wall Street Journal explained.
If the report proves true, Ford will join a long line of auto dealers making the pivot to Mexico, including BMW, General Motors, Volkswagen, Toyota, Honda and Kia. This shift is only expected to grow because the United Auto Workers labor union recently struck a deal to increase wages for U.S. factory workers, making domestic production just that much more cost-prohibitive. As wages in the U.S. go up, Mexican wages stay the same, and it therefore becomes even cheaper to do business with Mexican factory workers as opposed to American laborers.
The UAW insisted that auto companies don't need to run to Mexico because they can afford to pay their workers high wages. "They're making huge amounts of profits," UAW President Dennis Williams stated. "There is no reason mathematically to go ahead and run to countries like Mexico, Taiwan, Thailand and Vietnam."
(Excerpt) Read more at conservativetribune.com ...
I worked on a GE project in Schenectady in the 1970s
The pipe fitters were making a connection that had to be done with GE workers
four pipe fitters and one doing the welding.
GE is long gone form Schenectady and the city looks like Detroit
GE and Ford signed these contracts it there fault
The cost of labor is just another factor in what is a tyrannical federal government that makes it almost impossible to profit from building a car in the US.
A lot of the reason they move is less stupid red tape, union BS, constant mandates from on high, taxes, etc.
Get rid of all that and they’d be happy to manufacture here.
Before Steve Jobs died he once discussed why Apple made the IPhone in China. He said in the US he can’t move as fast as the market demands. When their early phones were having glass shatter issues even in a small drop they had to retool to change them. Easy in China but near impossible in America.
Let’s not all just jump on “evil corportations” for “shipping jobs overseas” without looking at all the evidence. Forcing them to come back is no different than Obama’s tyranny.
Much like how FR has ruled all major retail establishments off limits, we’re well on our way to boycotting all automotive names, LOL
We better hope Trump gets in or we’re down the tubes......
He’ll make unions great again, duh.
Ford should have moved to right to work state!!! However with all the NEW regulations coming from Obamas EPA labor was probably not the ONLY FACTOR!!! Obama HATES this country, he WANTS all of our businesses moved to 3rd world countries it’s his redistribution of our wealth!!!
Article says BMW also moved to Mexico (or made in Mexico?)
That could be the name of the anti-elite party ..
You should have dumped it four years ago.
It WILL be VERY easy get rid of the EPA!!!! Businesses will FLOOD back!!!!
Crawl back under your rock.
I have a 79 pet project K5 blazer in a building that I toy with some but no more gov-co motors.
November 9, 2016....
“Well, many businesses are leaving the US for Mexico and overseas...Labor unions are expanding...Unemployment has risen to 25%...Gas has gone to $5.50 per gallon...Taxes have doubled for all but the illegals...”
“BUT WE GOT A DEMOCRAT IN OFFICE!!!!! YAYYYYYY!!!!”
Fab - you- lousssssssssss!
Ross Perot predicted this way back in 1992.
“Motivated by the labor unionâs contract. How is Trump going to fix that? And would he?”
Trump supports unions.
Cars will just cost more.
It will be great.
I buy what I like.
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