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To: kjam22
The Ford situation in Mexico is a perfect case in point for why stupid U.S. regulations drive businesses out of the country.

Ford has a problem that many of their competitors face, but it's worse for the Big Three automakers because of their high labor costs in the U.S. Here's a quick (simplified) summary:

1. Fuel efficiency standards require car manufacturers to sell vehicles that meet an average mileage standard across their entire product line. To meet these standards they have to sell a lot of small cars. U.S. auto safety standards make these cars more expensive today than ever before.

2. So Ford faces a dilemma: they have to sell a lot of their compact cars, but the combination of UAW labor costs and government safety standards push the prices of these things up near the $20,000 range.

3. The problem is that nobody wants to buy a compact car for $20,000 these days. Anyone willing to shell out that kind of money for a new car is likely to be in the market for a mid-sized car.

4. So Ford has to get the price of their compact car (the Ford Focus) down to the $16,000-$18,000 range -- either by producing it in the U.S. and selling it at a loss, or by producing it in Mexico and making a small profit on them.

Can anyone blame Ford for opening a new plant in Mexico to manufacture the Focus?

37 posted on 04/28/2016 5:22:58 AM PDT by Alberta's Child ("Sometimes I feel like I've been tied to the whipping post.")
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To: Alberta's Child

Once we build the wall, Americans will be happy to pay more for a Ford Focus.

Or go without.


56 posted on 04/28/2016 5:33:04 AM PDT by SoothingDave
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To: Alberta's Child

“Can anyone blame Ford for opening a new plant in Mexico to manufacture the Focus?”

Yep, Trump can. The facts be damned.


92 posted on 04/28/2016 6:34:24 AM PDT by mtrott
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To: Alberta's Child

Stop it with the logic and knowledge about the issue! We all know that Ford is a big corporation that pays their CEO millions a year, so they are evil and should be destroyed!

/s


161 posted on 04/29/2016 9:52:00 AM PDT by CSM (White wine sipping, caviar munching, Georgetown cocktail circuit circulating, Perrier conservative.)
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