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Trump May Have Won, But Ford Is Still Moving Its Small-Car Production to Mexico
New York Magazine ^ | November 16, 2016 | Charley Lanyon

Posted on 11/16/2016 5:46:17 AM PST by monkapotamus

Ford’s chief executive officer Mark Fields must not respond well to threats; he admitted to Reuters on Tuesday that Ford was still planning on moving the production of its small cars from Michigan to — you guessed it — Mexico...

Fields claimed that the move would not have any effect at all on American jobs because the move south will “make room for two very important products we’ll be putting back into Michigan plants.”

Ford has yet to announce what, exactly, those “important products” are, but Fields is convinced that the move will lead to “no job impact whatsoever.”

“It’s very difficult for us to be able to make money on a vehicle produced in the U.S,” said Fields, explaining that if they were to raise the cost of their smaller cars to compensate for the increased cost of manufacturing in the United States the car just “wouldn’t sell...”

(Excerpt) Read more at nymag.com ...


TOPICS: Mexico; News/Current Events; Politics/Elections; US: Michigan
KEYWORDS: 2016issues; automakers; ford; fordmotor; layoffs; manufacturing; nafta; trump; trumptransition
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To: DaveA37
The rule of thumb is it takes 30 man-hours to build a standard 25k car. You do the math. With union labor at say $60.00/hr then the labor bill comes in at $1,800 per vehicle. So if Paco in Mexico costs $5.00 an hour then the labor bill is $150.00 per car or a savings of $1650.00 per car.

Now with non-union labor at say $30.00 the labor bill comes in at a reasonable $900.00 per car. I would pay an extra $750 per car for made in the USA. Over a 4 yr loan it adds maybe $10 more to your $400/mo payment. Think of that 10 bucks as an employment tax to keep America from going down the sewer.

41 posted on 11/16/2016 6:02:42 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: monkapotamus

I just giggle every time I get into my 1971 International Pick up truck (1210 model) I pay 16 dollars a month for compulsory insurance (an add on to our current insurance) and I also pay 48.00 dollars for the registration a year...do the math...240.00 dollars a year to have a truck that can haul 2000 pounds and whatever else I need to do. Foed/toyrota/nissange/ hell all of you manufacturer’s can go defecate in your hat. When you ask 40-50k for a truck (what I paid for my house and land...fixerupper) that can’t do what mine does 45 years after it left the factory...well boys...go back to what Ford initially did ....his model worked but I’m sure your to highly educated to grasp such simple thoughts.


42 posted on 11/16/2016 6:02:51 AM PST by mythenjoseph (Separation of powers)
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To: Resettozero

And Mercedes, Hyunai and Volvo is building a new plant in SC too.


43 posted on 11/16/2016 6:02:55 AM PST by Gamecock (Gun owner. Christian. Pro-American. Pro Law and Order. I am in the basket of deplorables.)
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To: ConservaTeen

Only a Free Traitor™ would call off shoring a “good move”.


44 posted on 11/16/2016 6:03:46 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Resettozero

When I was a kid, Ford meant

Fix
Or
Repair
Daily


45 posted on 11/16/2016 6:04:00 AM PST by ilovesarah2012
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To: Arm_Bears
Not that I care, but such a tax on Mexican auto production would effectively close down the industry there. The ripple effect would be absolutely devastating in Mexico.

Expect a flood of refugees if that happens. Better get that wall up and man the guard towers.

Like I said, I don't really care what happens in Mexico, I do not live on that border. Just be prepared for the consequences of impoverishing your neighbor.

46 posted on 11/16/2016 6:04:36 AM PST by Former Proud Canadian (Gold and Silver are real money. Everything else is a derivative)
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To: monkapotamus

This simply reflects Ford’s inability to turn this around. You could smell the fear in the CEO’s interview. Broncos and Rangers to Detroit? BS.

Ford is gonna crawl on hands and knees to get Trump off their case. What will it take? Who knows. but, they can’t be the whipping boy for this problem. First step, fire the CEO. Its inevitable.


47 posted on 11/16/2016 6:04:51 AM PST by anton
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To: DaveA37

You are not subtracting off the margin for using almost slave labor. The price will not go up the whole tariff amount. Ford will eat a lot of that tariff.


48 posted on 11/16/2016 6:05:44 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: monkapotamus

As if there wasn’t room to expand operations right here.


49 posted on 11/16/2016 6:06:24 AM PST by trebb (Where in the the hell has my country gone?)
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To: ecomcon

Sing it brother!


50 posted on 11/16/2016 6:06:40 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

exactly. globalist can keep yammering about how this allows us to purchase goods cheaper but they’re full of it. These companies move to places like China and Mexico to get a larger profit. Slim to none is what is handed back down to the consumer in lower costs.


51 posted on 11/16/2016 6:07:56 AM PST by snarkytart
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To: Former Proud Canadian

The people that cross illegally to the US are not auto workers from Mexico.

47% of Mexico is “middle class.” That means kids in school, car payments, barbecue on the patio, vacation, etc. Those are auto workers. they are not coming to the US in the back of a pickup. Thugs, wanteds, drug dealers, etc. is what we get from Mexico.


52 posted on 11/16/2016 6:08:00 AM PST by anton
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To: Eric Pode of Croydon

Did you vote for Trump? If so you are a hypocrite.


53 posted on 11/16/2016 6:08:28 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: ErikJohnsky

What cars are made in Mexico?

The Cadillac Escalade EXT and SRX, Chevrolet Avalanche, Chevrolet Aveo, Chevrolet HHR, Chevrolet Silverado and Silverado Hybrid, Dodge Journey, Dodge Ram 2500, Dodge Ram 3500, Dodge Ram 4500, Dodge Ram 5500, Ford Fiesta, Ford Fusion and Fusion Hybrid, GMC Sierra and Sierra Hybrid, GMC Sierra Crew Cab, Honda CR-V, Lincoln MKZ and MKZ Hybrid, Nissan Sentra, Nissan Versa, Volkswagen Jetta and Volkswagen Jetta SportWagen are all assembled in Mexico. Toyota Tacomas are assembled in both Mexico and the United States.

Engines made in Mexico include those used in the Chrysler Jeep Grand Cherokee, Dodge Ram 1500, Ford Escape and Escape Hybrid, GM Buick Lucerne and Cadillac CTS line, Cadillac Escalade Hybrid, Chevrolet Cruze and Malibu, Chevrolet Tahoe Hybrid, GMC Yukon Hybrid and Mazda Tribute Hybrid.

Transmissions made in Mexico include those used in the Dodge Calibur, Chrysler Jeep Compass and Patriot, Ford Shelby GT500, Nissan Altima and Maxima, and a wide range of GM vehicles.

Mexico is currently the second largest exporter of vehicles to the United States and is projected to eventually overtake Japan.

https://www.reference.com/business-finance/cars-made-mexico-9840a65c7dc803


54 posted on 11/16/2016 6:08:59 AM PST by deport
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To: nightmarewhileawake

It shouldn’t be that hard.


55 posted on 11/16/2016 6:09:00 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: littleharbour
Some of it is passed on, as you can see in any Walmart aisle. But the main motive of the globalist is of course increased profits.

Really? Prove it. The stockholders will have non of that.

56 posted on 11/16/2016 6:10:42 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Former Proud Canadian

Is this some kind of threat?


57 posted on 11/16/2016 6:11:55 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: snarkytart

Otherwise the move offshore would be pointless.


58 posted on 11/16/2016 6:13:05 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: Resettozero
How many of these companies build their compact cars in the U.S.? From everything I've seen, these companies build their higher-end cars and SUVs here.

Ford is right about this. The issue isn't that they're moving these operations to Mexico just to save a buck and make the company more profitable. The issue is that these companies have to sell a certain number of these compact cars just to meet their Federal fuel efficiency standards. And if they build a car like the Ford Focus here in the U.S., the thing gets so expensive that buyers decide they may as well pay just a little more for a mid-sized Ford Fusion instead ... which means they have to sell even MORE Focus models just to meet those EPA standards.

This is exactly what's happening here, folks.

59 posted on 11/16/2016 6:13:13 AM PST by Alberta's Child ("Yo, bartender -- Jobu needs a refill!")
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To: central_va

Huh??


60 posted on 11/16/2016 6:13:18 AM PST by Former Proud Canadian (Gold and Silver are real money. Everything else is a derivative)
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