Posted on 03/24/2016 2:44:24 PM PDT by jjotto
Auto giant Ford is planning a new assembly plant south of the U.S. border, the Wall Street Journal reported Sunday, and will sharply increase factory output from Mexico just months after signing a labor deal.
Citing people familiar with the matter, The Journal reported that Ford will add half a million units of annual capacity from Mexico starting in 2018, which is double the amount it built in 2015. The new assembly complex will be based in San Luis Potosi, and Ford will expand an existing facility near Mexico City, the publication added.
The move may heighten the debate over cheaper foreign labor. According to the Bureau of Labor Statistics, Manufacturing labor costs in Mexico are approximately 1/5 of those in the United States. In November, Ford signed a new labor contract that gave factory workers higher wages. A Ford spokesperson did not immediately return CNBC's request for comment.
The full report can be found on the Wall Street Journal's website.
This joins news from the last few months that GM is to start shipping Buick SUVs from China, and one of the new Jeeps is to be built in Italy.
I’m sure Ford quality will skyrocket.
This is why America badly, needs a Donald Trump presidency.
ALL of our so-called leaders, are sold out.
Every one of them..
I just read a story about how Trump put Ford in it’s place. LOL!!!
http://freerepublic.com/focus/f-news/3413345/posts
Couldn’t have anything to do with Federal regulations or taxes. Oh no. It’s always just evil businessmen and cheap labor. /s
Put a 2,000 import surtax on Ford, and watch em dance.
And a few other places as well.
It’s all of the above. But it’s national suicide to dump our manufacturing base while leaving all the other baggage in place.
That's the second story and thread in recent weeks stating Ford had changed its plans. Neither had any links beyond the linked story. Might have been the same source.
I have mixed feelings. I hate the United Auto Workers Union.
But the labor can be quantified and it's always a huge number. Some of the first moves of plants to cheap labor nations in Asia cut labor to 10%, or even less of US wages. Wages in Mexico have increased some with so many US and other plants locating there.
Manufacturing labor costs in Mexico are approximately 1/5 of those in the United States.
Can you quantify these other factors you mention?
“...GM is to start shipping Buick SUVs from China....”
Yeah, let’s further improve GM’s “quality: with some good Chinese stuff.
/S
there was a thread today saying Ford intends to keep work here and was sending Trump a letter with its plans.
i’m not making it up.
One or the other has to be true.
I work in San Luis Potosi.
That town is growing and it’s pretty nice.
I saw something that Ford had contacted Trump and would remain in the United States.
Hopefully, that’s not a rumor.
As large businesses leave this country and middle class keeps shrinking, I am kind of wondering who they plan on selling all these cars to.
Just don’t buy the cars made in Mexico. or don’t buy Ford at all.
Do you really think that Trump will prevent production of one Ford in Mexico? Unless he has some magic beans those jobs are lost to us.
Just damn the only country that builds cars and trucks in America anymore is Japan.
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