Since Labor costs are only 20% of Cars Manufactured here, why do those Cars cost the same as Cars Manufactured here?
I had a Chrysler PT Cruiser that was built in Mexico and I drive a Dodge Challenger that was built in Canada. Heck, they even Manufacture Cadillac CUV’s down there.
Meanwhile, my Wife drives a Kia Optima that was built in North Carolina. I’m so confused. LOL
Your numbers are off. For union built cars, the worst case scenario, labor averages 6-8% per vehicle. I do not know the Mexican labor averages but I will guess 3-4% per vehicle. For a $30,000 car built in USA by union labor it is about $2,400. For a wetback built car it is $1,200 labor. So Ford is doing this so pocket a few pennies (4 cents) on the dollar, kind of sleazy isn't it? They'd go thru all of that trouble for a few pennies on the dollar, those saving are not passed on to the Ford buyer.