Posted on 09/18/2016 4:20:31 PM PDT by 2ndDivisionVet
Ford Motor Co. is the classic example of an all-American company, but now they are better representing what ails the American economy, as they are being forced overseas. As Ford begins plans to build a $1.6 billion auto assembly plant in Mexico for small car production, the company continues to experience the pressure of globalization crushing their American business dreams.
Ford was a classic Michigan company, but as Detroit News reported Michael Martinez reports, "It will employ 2,800 at the new Mexican plant by 2020."
It is no surprise Ford has to modify their building model in order to compete, most classic American companies do — GM and Fiat Chrysler have outsourced to Mexico for truck production, for example — and Ford could risk closing their entire operation if they did not cut costs. The Small Business Chronicle writer Michael Roennevig found that extremely high corporate taxes, high labor costs, and excessive regulation force companies to move overseas.
It is not Ford's fault; but it is Washington's fault.
With a corporate tax rate of over 30 percent and Obama's environmental, labor and other regulations that increase the cost of running a factory in the United States as well as stifling innovation, companies such as Ford must utilize the tools given to them in agreements such as the North American Free Trade Agreement (NAFTA) which incentivize moving factories and jobs across the border or overseas.
Even the Huffington Post's Lori Wallach wrote in Jan. 2014 that on NAFTA's 20-year anniversary it represented "a staggering $181 billion U.S. trade deficit with NAFTA partners Mexico and Canada and the related loss of 1 million net U.S. jobs."
As once iconic companies resembling the American dream, Ford, moves overseas, President Barack Obama is considering another international free trade agreement which will force even more Americans out of work, the Trans Pacific Partnership (TPP).
An agreement, mind you, that Ford opposes. Moving jobs to Mexico must make executives at the company sick to their stomachs.
While TPP supporters hail the differences between this agreement and NAFTA, the TPP misses one critical element of contention which causes immense harm to the U.S., the TPP offers no protection against currency manipulation.
This practice, heavily employed by Asian countries interested in signing the TPP is found to have been a driving force for job loss and reduced gross domestic product. A study conducted by the Economic Policy Institute in March 2016 found that "currency-manipulation-fueled trade deficits have reduced U.S. gross domestic product, eliminated millions of U.S. jobs, driven down U.S. wages, and propelled the outsourcing of U.S. jobs to currency manipulators. In 2015, the U.S. deficit with TPP countries translated into 2 million U.S. jobs lost, more than half (1.1 million) of which were in manufacturing."
Today, Ford is moving small car production to Mexico and attempting to maintain some U.S. based production, with the TPP in place even more production will eventually be forced overseas. Companies may not be able to compete by producing in America. It's that simple.
In Michigan, which holds 16 votes in the electoral college, the thousands of people losing their jobs are aware of this reality and have already proven they are voting based on it. NBC exit polls from the Michigan primary showed that when asked overall how trade with other countries effected job creation 57 percent believed it took jobs out of the U.S.
This correlates with 57 percent of Democrats and 55 percent of Republicans who believed trade with other countries takes away U.S. jobs. Those people backed Bernie Sanders and Donald Trump overwhelmingly, as both were adamant fighters against the TPP and NAFTA. In the meantime, Ted Cruz and Hillary Clinton supported NAFTA.
Now Ford is proving once again to Michiganders that trade does take away jobs, as they are now going to be unemployed, leaving them with only one other option — voting for candidates who understand that high corporate taxes, and increased manufacturing costs due to heavy regulation harm American manufacturers trying to compete in the world economy. If Michigan voters, who overwhelmingly have a negative outlook on economic conditions and consider it one of the most important issues currently facing the country, vote in the same fashion as they did in the primary, Michigan might easily be a red state on election day.
Clinton, who has flip flopped on both TPP and NAFTA, has sparked distrust with voters on her stance on the issue. Now she says she's against TPP, but can she be believed? In Michigan this could make all the difference for disgruntled former Ford employees losing their jobs to low wage Mexican workers.
Even before Ford's announcement on Sept. 14, a Free Press-WXYZ-TV poll conducted Sept. 10 through Sept. 13 found Trump was already within 3 points of Clinton in the Great Lakes State.
Ford was meant to be a business representing the American dream and American innovation, unfortunately, big government policies and bad trade deals have stolen that from the company. Now Ford's decision becomes a symbol of U.S. economic decline. The next president will decide whether that changes or continues down the economic path the people of Michigan fear.
Oh heck yes it will!
A lot of Union people are voting Trump!!!
How dare does Levin have the audacity to tell people that Ford is moving production of the Focus from Wayne Assembly in order to make way for the production of the new Ranger?
If, before the election, Ford announces they’ve decided not to move to Mexico...y’all will have nailed it. Trump could very well be working on Ford right now.
What a coup(e).
It looks like LEVIN is part of the GOP-e. All talk and no walk. He’s a disappointment.
Ford CEO is an A-Hole.
This is the first time the Ford CEO publicly commented so obviously Trump’s attacks hit the mark.
Just type “waah” next time and save yourself the keystrokes.
Union extortion has had its day. Companies like Ford are finally being taxed, waged and regulated OUT OF AMERICA. The stage is set. Time will tell.
No, I think the corportists would leave the US anyway if they could make 5 cents more profit building a plant in Me-he-co. The Ford CEO was asked directly on TV if Ford was a US company and he REFUSED to say it was. These corporate bean counters no longer have an ounce of patriotism in them. It’s globalism all the way.
Uhh... Gee do you think?
Mark Levin says that nobody is losing their jobs over this because they are going to be building other things there. For how long I ask. For how long?
His hatred for Trump blinds hm to the realization that it cold have meant 2800 additional jobs for Americans out of work. He has lost his friggin mind!
Levin is being willfully dishonest. Like always. Who is building that plant in Mexico? Americans? Obviously not. So American jobs ARE being lost by Ford building this plant in Mexico.
Actually, Ford’s CEO (figuratively) gave Trump the middle finger a few months ago, over his threat to tax F-150’s built in Mexico 35%.
Yea, I know. I was on the way home later than normal and he was coming on. It took me a millisecond to switch to some music channel when I heard that. What stupid short sighted logic.
Good pun. :)
It certainly makes you think. Either that or they foolishly thought that announcing now would somehow get them a pass if Trump wins. But I`m more inclined to suspect the former. These are generally not stupid people. Anyone with the ability to see two moves ahead would have been able to see that this announcement would help Trump.
As a retired member of Ford Management I am ashamed of this recent announcement.
Keep all ford jobs here - not in Mexico. The profit margins are small on small cars and big on pickups and other large vehicles. Has Ford forgotten that even a small margin vehicle contributes to fixed costs.
I know the Fusion in my garage is built in Mexico. The vehicle that replaces it next year won’t be built outside of the USA.
When President Trump imposses a 35% tariff next year on imports Ford will lose not gain.
I pray that Ford Management will reverse this move decision.
It used to be that cars were built in Flint and you couldn't drink the water in Mexico. Now cars are built in Mexico and you can't drink the water in Flint.
But the union isn’t “in” the voting booth. And the union member voting for Trump can come out and say he voted for Hillary.
I recognize a CEO’s responsibility.
I wish I was a CEO if I had the talent and political skills.
My point is he’s trying to defend the decision as no one lost a job while he created 1000’s of new jobs in Mexico which also hurts our GVDP.
- “V”
I think the Ford move is driven by a whole lot more than a desire to avoid paying wages.
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