Skip to comments.Engine Manufacturer to Cut 400 Jobs[Iowa, Cummins to move 400 jobs to Mexico]
Posted on 08/25/2009 11:15:49 AM PDT by Son HouseEdited on 08/25/2009 11:17:35 AM PDT by Admin Moderator. [history]
DES MOINES, Iowa (AP) - Cummins Filtration has announced plans to move 400 jobs at its Lake Mills plant to a factory in Mexico.
The division of diesel engine manufacturer Cummins Inc. announced Tuesday its oil and fuel filter assembly operations in Lake Mills will be moved to San Luis Potosi, Mexico, beginning in November.
(Excerpt) Read more at kaaltv.com ...
Figures.....Dodge Turbo Diesels.......Chrysler......Government Controlled.
Not a surprise. Makes me less a fan of Cummins now.
Evile businessmen or just a company trying to escape the coming fascist Fed take over? You decide!
Thank the unions for this one.
NAFTA working its magic for the American worker again.
Reminds me of that sucking sound Mr. Perot talked about.
How’s that hopey-changey thing working out for you Iowa?
nope, lower costs worked it's magic. Look at the corporate tax rate for a company in Iowa and one in Mexico. The problem with mexican plants is the workers not producing as much as US workers, but they offset that with much lower wages.. so the unit costs are lower and in order for them to stay in business... well you know.
The outsourcing model has failed miserably.
when government makes it impossible to produce/ manufacture here (in the US), companies, in order to stay in business, will always look for alternatives
you have evidence & data to support this? And to which industry does the data pertain?
You can bet those jobs they are shipping to Mexico will be shipped to Communist China a couple of years later.
No sympathy for any company that ships jobs out of America. There is no reason for treason...
Score another victory for the unions and Team Obama.
It never helps the US economy when jobs are shipped out of the country.
All NAFTA has done is created a big US trade deficit with Mexico. Imagine...tens of billions of dollars in trade deficits annually with a Third-World craphole that must rely on forced deportations of their people to keep from sinking.
If Iowa was not a great place for Cummins to make their products...there are plenty of US states that would allow Cummins to make products cheaper than in Iowa.
Cummins committed economic treason. They would rather have jobs leave the USA than try another location in the USA
unions AND a worthless state that will tax a business to death encouraging them to leave.
We moved our OE manufacturing to San Luis Potosi six years ago.
The Cummins facility is right across the street from us.
All day of flying.
Thousands of dollars in expenses.
Have to remember my high school Spanish.
And you know what?
It’s still better than dealing with UAW assholes in the US.
Only in Iowa can you make a property owner inelgible to do simple wiring on his own propert, and then put a $4000 fee on a “nanny state” approved electrician so he is “allowed” to do wiring for someone. Gues why nobody is moving manufacturing or building in a state of welfare farmers.
Total Idiots in a state I was born and raised and so very very very glad I left.
Iowa has high corporate taxes. Unions are scum. The government is determined to make business’ that make money pay. So long jobs!
I wonder how big a bonus the CEO gets for this?
Probably cuts payroll by $5M so as to get himself a $10M bonus. Sweet.
Hey Iowa, how is that hope and change working for you?
thas a fac jac!!!
I used to get shit from the UAW assholes when I walked into an American plant.
The Mexicans come up, shake my hand and ask me out to lunch.
When we closed our last OE plant in Indiana, I made sure I was there on the last day, smiling as those assholes left the facility.
This must be those “Verde Shoots”.
Or, just maybe, that division of the company stays open and makes it through the recession.
That couldn’t be.
Everybody knows that a CEO has complete authority and every decision-maker in the company will sign off on this.
The result of a fusion of Obamanomics and the UAW. Lost jobs for everyone ! I hope MOST US companies go abroad. The labor union thugs can kill each other for the last scrap of food.
Really? Color me skeptical. But, you're the expert.
If you want ON or OFF the DIESEL KnOcK LIST just FReepmail me.....
This is a fairly HIGH VOLUME ping list on some days.....
I have no problems with a business going where it is cheaper to produce goods it sells, especially when unions doing brain-dead work is involved, as with watching machines make simple filters.
Notice they aren’t sending down the truly important work of engine building—something for which a bad assembly job done to an inner area becomes massively expensive to fix.
I’d like if the jobs stayed, but if a company is to compete in a free marketplace, providing us the best items for the price we choose to pay, then they must do what allows the customer to have his needs met.
Yeah, I really liked hearing that one!
No problem, those jobs will be shipped to China soon enough.
well skeptical .... I AM the expert because I just got done dealing with Iowa ASSHOLES on a farm I still own back there.
STill not enough skeptical
Guess you doubt the death clause in the magic negoes party health care plan as well .... all it takes is a moment to read it.
read https://iowaelectrical.gov/index.php/pages/faqsit and weep
Perhaps you might deal with facts and not you own ignorant self impressions
NAFTA is no where near as much a problem as the higher taxation and uncertainty being fostered by this administration. Between the HealthCare taxes coming up, the CapNTax penalties in discussion, the increase in taxes after the Bush tax cuts expire, and the very likely huge bump in inflation which will arrive sometime in the next few years, NO business is going to expand. Any business that can leave the US is going to leave when they are able. Those who are in Democrat states like IA are more likely to leave than those in GOP states.
Thanks for bringing up your personal experience here. I forgot in my post above to mention the huge problem that the unions give so many companies.
The unions did a useful service for all of us when they were first coming up. Now all they do is hurt everyone. The more prominence they have in the industry, the worse it does. PERHAPS someone will someday realize that is the major problem with education and government in this country- which now represents more than half of union membership in America.
Oh no, not on obama’s watch! I thought he was going to keep jobs from going overseas. He is a major failure. He thought his popularity was going to carry the day. Reality check!
Going to Mexico is just jumping from the frying pan into the fire.
The problem in the US is not ONLY taxes. It is a plethora of items that have had a result of penalizing “Productivity” in the United States relative to what we could be producing.
Regulations, whether environmental or product safety or ‘protective’ for one industry or another, reduce productivity via artificial constraints. If I wish to buy a ladder that is a little rickety, then so be it.
That is tied up with our incredibly legalistic barriers to increased productivity. When there are more lawyers than engineers, that indicates a problem in itself with respect to productivity. Lawyers slow productivity, indisputably.
Our taxation structure is a barrier to increased productivity. That barrier is much lower in many ways in many countries in the world. The way depreciation of capital is allowed in the US tax code is only one of those problems, but is a stark difference.
A specific item is that we have forced atomic power plants out of business in this country, and are attempting to do the same with coal. Indisputably, these are the most productive methods of generating electricity with the exception of hydropower, which is essentially constrained by nature. Similarly the US has placed barriers on oil and gas production which has lowered productivity in that realm.
Any higher taxation lowers the likelihood capital will be invested, and lowers productivity gains.
Our welfare system encourages lower productivity. When people are able to eat without ever considering working, that is a problem. That goes for many other programs.
The size of government at all levels decreases productivity. Those bureaucrats with very few exceptions add nothing to productivity.
IF the US would start focusing on allowing our business and technologists to increase the US productivity whole hog, we could again be the leader in world manufacturing due to our ability to harness technology. That would again allow our wages to balloon, since ultimately, wages (standard of living) are based on productivity.
And part of the problem is slave wages in the third world, no worker protections, and no pollution controls. We can take nearly any deregulation step and we still won’t be able to compete with the slave labor conditions.
You bring up good points there. However, the US managed to overcome the wage/labor disadvantages for many many decades, due to the WASP work ethic and the US interest in knowledge and education and technological advantages.
The government indirectly has hurt the first with the way we’ve penalized success, demeaned the religious foundations upon which we were built, and with the welfare system. I believe that the unions have been the prime factor in hurting the second. If we dcn’t recover those, we’re doomed I agree.
The disparity in wages has been longstanding, though, and even though it exists to this day, the US still manages to compete in many advanced fields, so I believe it is less of a factor than all of the others.
oops - didn’t address the pollution stuff. In the US, we have gone WAY, WAY overboard in “cleaning up pollutants”. The cost of dealing with such things is not linear, but exponential, with the amount of “cleaning” and “safety” you demand. If we had “reasonable” controls instead of “pristine”, the costs would be far lower. That was part of my initial answer as to what we could do to more competitive, as was the “legalistic” aspect of America.
Okay, FRiend, apparently you have a personal beef against Iowa. But, no matter what you’re dealing with, chances are pretty good it does not happen “only in Iowa.” That was the point.
By the way, when it comes to dealing with some of the obviously bought-and-paid-for features in the Code of Iowa, I’m not nearly as “ignorant” as you might like to think.
The problem in Iowa isn’t coporate taxes in the form of income, it is the super high property taxes they have to pay.
YOU ARE RIGHT, BUT THEY SURE TAX THE CRAP OUT OF THEM HUH?
(SORRY ABOUT CAPS, DRAFTSMAN SLACKING FROM DUTY)