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It's funny how Honda, Toyo, Hyundai and Kia all make cars here in the U.S. and hasn't said anything about producing cars in Mexico, all the while the big 3 will soon start offshoring manufacturing jobs to China, GM being the first with Buick and Cadillac.[/QUOTE]
Yeah, isn't that ironic. They go to Mexico before Nashville. And in the middle of it all UAW is dead quiet. They are there to support American workers but you don't hear a peep from them.
It's funny how Honda, Toyo, Hyundai and Kia all make cars here in the U.S. and hasn't said anything about producing cars in Mexico
They're all guilty.
Honda Fit and HR-V are built in Celaya, Mexico.
KIA Forte is built in Monterrey, Mexico. Hyundai Accent and KIA Rio are moving there next year.
Toyota Tacoma has been made in Tijuana, Mexico for many years.
What Ford is doing is they're moving almost all of their car production out of the U.S. But it's not going to cause job losses.
The workers who used to build low margin cars are going to build higher margin products instead.
The only Cadillac that is not made in the U.S. or Canada is the extremely low volume CT6 PHEV.
The few hundred that will be imported will be made in China.
The vast majority of CT6's are made in Detroit.
ATS and CTS are made in Lansing, MI.
Escalades are made in Arlington, TX.
The XTS is made in Oshawa, Canada.
Production of their top seller, the XT5 CUV has returned to the U.S.
It's being built in the former Saturn plant in Spring Hill, TN. SRX's were built in Mexico.
Among luxury brands, Cadillac has by far the greatest percentage of it's products built here (U.S./Canada).
Toyota is building a new plant in Mexico to build the Corolla for the 2020 model year which will replace their Canadian plant. The goal is to build higher value product (RX, Sequoia, Highlander, Sienna, Avalon, and Camry) in their northern plants and the lower cost product in Mississippi and Mexico.
Audi just started production of the Q5 in Mexico.
BMW will begin producing the 3 series in 2018 in Mexico to replace the South African production now sent to the US.
Mercedes will make the next GLA in Mexico starting in 2018 and Infiniti will start production in the same plant next year.
Honda used to made Accords in Mexico to supplant US production.
Smaller cars can be made more profitably, shipped more efficiently, and avoid some of the tariff penalties by being produced in Mexico. The larger trucks can be competitively made in the market where they will be sold, reducing shipping costs of the larger vehicles and avoiding import taxes on what we want to sell here anyway. Business 101. No jobs lost in these moves, this time.
That 35% tariff never looked so good. It'll stop them cold in their track. You are saddling domestic manufacturers with all sorts of environmental and occupational burdens and high tail it south? Well, we'll add that cost when you want to bring the cars back to the US. Let's see who leaves then.
Creating more jobs in Mexico will suppress immigration. Workers go where the jobs are. Manufacturing goes where the labor is most affordable.
The message the manufacturers are sending by keeping high end production in the US is that if you want a quality build, you have to pay for it. You want US built cars? Get Caddies.
That 35% tariff never looked so good. It'll stop them cold in their track. You are saddling domestic manufacturers with all sorts of environmental and occupational burdens and high tail it south? Well, we'll add that cost when you want to bring the cars back to the US. Let's see who leaves then.
That would not likely have changed this move. The smaller cars that are moving production out this year (Ford and FIA) are not selling in the US so they really don't care. They can build them in Mexico and ship them to S America cheaper than they can build them or ship them from mainland US. The trucks, which are selling well in the US will be built on American soil and the manufacturers won't pay tariffs or expensive ship or rail transport costs.
This one is actually a win-win regardless of the tariff rate.
Smaller cars can be made more profitably, shipped more efficiently, and avoid some of the tariff penalties by being produced in Mexico. The larger trucks can be competitively made in the market where they will be sold, reducing shipping costs of the larger vehicles and avoiding import taxes on what we want to sell here anyway. Business 101. No jobs lost in these moves, this time.
No jobs lost total because they're re-introducing the Ranger and Bronco and building them in Michigan
Honda Fit and HR-V are built in Celaya, Mexico.
KIA Forte is built in Monterrey, Mexico. Hyundai Accent and KIA Rio are moving there next year.
Toyota Tacoma has been made in Tijuana, Mexico for many years.
What Ford is doing is they're moving almost all of their car production out of the U.S. But it's not going to cause job losses.
The workers who used to build low margin cars are going to build higher margin products instead.
The only Cadillac that is not made in the U.S. or Canada is the extremely low volume CT6 PHEV.
The few hundred that will be imported will be made in China.
The vast majority of CT6's are made in Detroit.
ATS and CTS are made in Lansing, MI.
Escalades are made in Arlington, TX.
The XTS is made in Oshawa, Canada.
Production of their top seller, the XT5 CUV has returned to the U.S.
It's being built in the former Saturn plant in Spring Hill, TN. SRX's were built in Mexico.
Among luxury brands, Cadillac has by far the greatest percentage of it's products built here (U.S./Canada).
It's still a net loss because instead of Ford expanding in NA by building more factories here they are moving production and jobs. So the same guy working on Ford is now building higher margin cars but Ford is strategically doing this so they no longer hire new workers while they keep the ones grandfathered under union contracts on.
It's a win-win for Ford getting rid of union workers in the long run and moving jobs away from America.
This move actually isn't "offshoring jobs" it is rearranging the locations specific vehicles are being built for a better value to the company. The end result will actually be more jobs due to the addition of two new models that will be better sellers in the US than their small cars. It will also make the export of vehicles to central and south America more economical.
Additionally, even though I was not a fan of the bailout, you should be aware that all the loans to the auto manufacturers are since repaid. They are not wards of the US taxpayers.
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