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As a consumer I am happy to see this. I will never forget the abysmal quality and high cost of cars when they were built in the US and unions pushed for ridiculously high wages, featherbedding, and constant battles with management including frequent sabotage and strikes. Eventually the pendulum swings.
BTW the current Ford expansion in Mexico is relatively small at less than 3000 workers. Ford already has way more employees in Mexico and lots of manufacturing worldwide.
I read somewhere that one factor was Mexico has free trade agreements with more countries than does the US. It's not just cheap labor that attracts manufacturers.
You can't blame Ford for fleeing UAW costs for low margin econoboxes. If you have a unit labor cost disadvantage, you have to exit the business or lose money if you don't move production. Ford can't just move plants to the south to escape those UAW contracts. They have to leave the country. From where I sit, the UAW did this to themselves. You can make economy cars profitably in the US but not with those labor costs. Toyota does it. Nissan does it. Honda does it. They don't have the Detroit UAW problem.
Ford can't just move plants to the south to escape those UAW contracts. They have to leave the country.
Why not?
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