Ford Cancelling Mexico Plant, Invest $700 million in MI expansion instead

CNBC ^ | 1/3/2017 | CNBC

[rb22982]

Ford canceling plans for $1.6 billion plant in Mexico, investing $700 million in Michigan expansion instead

[txhurl]

The Left pushing ‘the new normal’ is proof they intended to keep it that way. Remember ‘FUN-employment’?

[dragnet2]

That’s a joke comment right?

[353FMG]

Not only are American businesses coming back to America — expect European businesses to establish operations in our country.

[spokeshave]

Plastics is based on petrochemicals. ...with us oil and gas coupled with low prices for electric power usa rules

[rhubarbk]

If Ford is canceling its plans to build its Focus model in Mexico, this tells me that they are pretty damn sure the EPA under Trump is going to completely overhaul the fuel efficiency regulations.

Another WIN!!!

[bus man]

We need to kill the electric car quickly and convincingly for the safety and longevity of the people.

Hybrids are OK, but plug-ins are death traps in an emergency situation of any kind.

They don’t just present a danger to the owners, they put the entire highway system in jeopardy.

---

Would you please explain?

[Celerity]

I understand ALL OF THIS.

My question is why ? Why did they go to Mexico in the first place if the costs were going to be more than twice ?

[meyer]

It’s not the labor costs, or rather, it’s not JUST the labor costs. The tax and regulatory burden for doing business in the US is enormous. Ford’s move to build in Mexico would have been not so much to reduce labor costs as to reduce regulatory costs. Our government is the problem, not the solution.

[EODGUY]

I can’t imagine what he will be able to do once he is sworn in as our President????

[CodeToad]

If Trump can undo EPA rules, the USA would be the plastics king!

[ichabod1]

no these are obolas green shoots

[KSCITYBOY]

That is Investment not cost of operations’ 2 entirely different things - Annual operations for a plant like that might be 2.5 million a day times 250 days = 625,000,000 every single year of operation.

The investment is a one time expenditure

[central_va]

Well you'd be wrong. Labor is about 8% of the cost of making a car. Complying with regs is a lot less per car. Regs come in two flavors: Regs concerning the car itself like MPG, fuel economy, mandated safety etc. And then regs concerning the workplace and the environment. The first flavor of regs applies to all cars wherever they are made. The second flavor of regs is where the "saving" comes in. Well not having to deal with OSHA, EPA on waste management etc, is not going to save much per car maybe a penny on the dollar, maybe none.

And then taxes. A Corp is going to pay taxes whether the car is made here or elsewhere.

Being able to exploit 3rd world labor and retail at first world prices is like crack cocaine to the Corporate staff and stock holder.

[Rebelbase]

“Those jobs are gone and won’t be coming back”.

[Hugh the Scot]

I can clearly see how the numbers don't work for them in isolation...

What I cannot "see" is how moving their production facility to Mexico helps with the issue you've identified: The stupid EPA regulations.

They won't sell more Mexican-made Focus' for $20,000.00 than they do U.S. made.

[central_va]

I am for deregulation in the car industry. Having said that cheap labor is the driving force behind offshoring. Complying with mandated safety, environmental and MPG regulations applies to all cars whether they made here or imported.

It's the cheap labor. It's like crack cocaine to the MBA corporate hacks that run our companies(into the ground)

[Rebelbase]

The “winning” I’m holding out for is this one, “Effective immediately all executive orders issued by the President of the United States between January 20, 2009 and January 19th, 2017 are rescinded regardless of their impact on the citizens or lands of the United States of America”.

[jazusamo]

Outstanding! Donald Trump has done more for jobs than 0bama did in 8 years and he hasn’t been inaugurated yet, the Carrier and Ford jobs are full time good paying jobs.

[muleskinner]

[Celerity]

Perhaps I can also add to that: Not only government regulation, but don’t forget the LARGE chunk of change that goes to Unions.