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A multibillion-dollar plant is built in Mexico and no jobs lost here? What about the jobs that were not created? The only reason you would look at it this way is if you don't care about the unemployed.
You totally misinterpreted my point. It was reference to this posters reply :
"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."
Meaning even if no actual jobs were lost, it is still jobs that could have been created, and not just Ford workers but everyone involved in the actually plant building process.
I'm in the automotive industry, I f&*king care, trust me.
What does the F-150 have to do with the Focus, or anything else we are talking about? The point is Ford is shipping back the Focus with virtually no added tax at the border. The same car made in the US is slapped with 30% tariff when exported to Mexico. People claim there is gonna be WW3 if Trump goes ahead with his tariff plan yet Mexico has been doing it and trade is flourishing. BTW, I googled the topic and our very own CD came up. We can't be stupid anymore.
Profitability of operating a production facility. If they can make vehicles that are more three times as popular (trucks) and sell them at a higher profit margin (double) and save on shipping costs, tariffs, labor, and benefits here in the states then truck production will happen here. In order to make that happen they move the slower selling lower profit margin vehicles that will sell in S America closer to that market and where they wont be charged the tariffs on export.
It's a good business move all the way around and requires $Billions less in infrastructure than trying to add production capacity here.
Profitability of operating a production facility. If they can make vehicles that are more three times as popular (trucks) and sell them at a higher profit margin (double) and save on shipping costs, tariffs, labor, and benefits here in the states then truck production will happen here. In order to make that happen they move the slower selling lower profit margin vehicles that will sell in S America closer to that market and where they wont be charged the tariffs on export.
It's a good business move all the way around and requires $Billions less in infrastructure than trying to add production capacity here.
And oddly enough, I never see any discount in the prices of these vehicles. All the lean manufacturing, offshoring and automating doesn't make it to the consumer now does it ?
And oddly enough, I never see any discount in the prices of these vehicles. All the lean manufacturing, offshoring and automating doesn't make it to the consumer now does it ?
Nope. Shareholders and exec's seem to suck it up.
Kind of off topic but related - everyone wants the 401k and mutual funds to make double digit gains so the moves like this are necessary. At the same time we all (Myself included sometimes) complain about wage rates and prices of the vehicles and goods never coming down. We can't have both. You aren't ever going to get the great gains on the mutual funds and investments while the company spends more money on wages or reduces profits by lowering prices.
Mutually exclusive wish lists of the fickle American consumer. Lower costs and higher returns from the same companies.
Kind of off topic but related - everyone wants the 401k and mutual funds to make double digit gains so the moves like this are necessary. At the same time we all (Myself included sometimes) complain about wage rates and prices of the vehicles and goods never coming down. We can't have both. You aren't ever going to get the great gains on the mutual funds and investments while the company spends more money on wages or reduces profits by lowering prices.
Mutually exclusive wish lists of the fickle American consumer. Lower costs and higher returns from the same companies.
True, yet in the 50's , 60's and some of the 70's people were able to raise a family, and own a home with only one person working.
Kind of off topic but related - everyone wants the 401k and mutual funds to make double digit gains so the moves like this are necessary. At the same time we all (Myself included sometimes) complain about wage rates and prices of the vehicles and goods never coming down. We can't have both. You aren't ever going to get the great gains on the mutual funds and investments while the company spends more money on wages or reduces profits by lowering prices.
Mutually exclusive wish lists of the fickle American consumer. Lower costs and higher returns from the same companies.
The problem is that the cost of wage keeps going up because in a trickle down economy the ones at the top of the food chain pay themselves first then the rest. So when they say that wages are going up, who's wages? Wages for Americans middle class have seen the lowest increases in the last 2 decades. While CEOs, directors, and higher ups keep going up exponentially.
Yahoo for example, the CEO gets paid hundreds of millions in salary and then gets another huge golden parachute to leave while those getting pink slips only gets a few weeks worth of pay.
That's our biggest problem is trickle down economy doesn't work for society. The huge income inequalities and our investment expectations need to be fixed and it start with having more accountability and ethical decision making at the management level. Every CEO hired today is plotting how to run up their game and how to exit with a huge pot of gold.
Last edited by vision33r; 10-07-2016 at 11:14 AM..
And oddly enough, I never see any discount in the prices of these vehicles. All the lean manufacturing, offshoring and automating doesn't make it to the consumer now does it ?
If you can't get at least 10 grand off a pickup, you ain't tryin'.
The problem is that the cost of wage keeps going up because in a trickle down economy the ones at the top of the food chain pay themselves first then the rest. So when they say that wages are going up, who's wages? Wages for Americans middle class have seen the lowest increases in the last 2 decades. While CEOs, directors, and higher ups keep going up exponentially.
Yahoo for example, the CEO gets paid hundreds of millions in salary and then gets another huge golden parachute to leave while those getting pink slips only gets a few weeks worth of pay.
That's our biggest problem is trickle down economy doesn't work for society. The huge income inequalities and our investment expectations need to be fixed and it start with having more accountability and ethical decision making at the management level. Every CEO hired today is plotting how to run up their game and how to exit with a huge pot of gold.
Joking right? Between the election and the current state of the economy, this is proving to be an extinct ideology.
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.
That is because the UAW contracts of the past are what caused making a car in the U.S. to be so expensive.
The real losers here are the American working man/woman. Off to the walmart and fast food sector they go.
There are people abroad that will happily work for even less than what a Walmart clerk earns. The American worker, unless the person has very rare skills is just noncompetitive in a global market.
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