Trump May Have Won, But Ford Is Still Moving Its Small-Car Production to Mexico

New York Magazine ^ | November 16, 2016 | Charley Lanyon

[central_va]

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.

[mythenjoseph]

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.

[Gamecock]

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

[central_va]

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

[ilovesarah2012]

When I was a kid, Ford meant

Fix
Or
Repair
Daily

[Former Proud Canadian]

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.

[anton]

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.

[central_va]

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.

[trebb]

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

[central_va]

Sing it brother!

[snarkytart]

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.

[anton]

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.

[central_va]

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

[deport]

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

[central_va]

It shouldn’t be that hard.

[central_va]

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.

[central_va]

Is this some kind of threat?

[central_va]

Otherwise the move offshore would be pointless.

[Alberta's Child]

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.

[Former Proud Canadian]

Huh??