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...the company expects to make higher profits because of the lower wages in Mexico.
Detroit's big vehicles are there most profitable. The plants in Michigan will be retooled to make the more profitable vehicles based upon American wage structure. For now that's increased job security for US workers.....but if gas prices rise and stay above 5 dollars a gallon Detroit will be hurting big time.
Guess all CEOs are honest about their motivations, all the time, eh.
He made the business decision to pay more than the competition to increase employee retention / reduce turnover and avoid collective bargaining. It worked, for a blip in time.
It's common sense.......If people can not afford your product, your product and company is worthless. It really is simple common sense and it's amazing that common sense has to be pointed out to so many.
"The owner, the employees and the buying public are all one and the same and unless an industry can so manage itself to keep wages high and prices low it destroys itself, for otherwise it limits its number of customers. Ones own employees should be ones own best customers".
Common sense. Those on welfare can not afford new cars. Common sense. Those working at McD's can not afford new cars. Common sense. Those working call centers can not afford new cars. Common sense.
Detroit's big vehicles are there most profitable. The plants in Michigan will be retooled to make the more profitable vehicles based upon American wage structure. For now that's increased job security for US workers.....but if gas prices rise and stay above 5 dollars a gallon Detroit will be hurting big time.
Short term gains to please Wall Street. Then when things blow up they will come screaming for the Fed to do something again. As I noted earlier, while Ford didn't take the bailouts others did which costs taxpayers millions of dollars they most certainly profited off the other programs.
Cash for clunkers. The zero interest rates. Etc. The only thing in business that matters today is the next P&L statement. We have allowed the bankers to run the country as opposed to the scientists, the engineers, the entrepreneurs, and it's a huge mistake.
It must be a lot of profit to move there as they are spending $1.6 billion to build a new
Manufactoring plant there.
They will be hiring poorly educated and low skilled workers and paying dirt cheap without U.S. Regulations, so how many recalls of their cars are we gonna see now????
I believe Ford Motor continues to hold the record for the greatest recall in history. 21 million autos were recalled in 1980 from 10 prior model years. Most of those were made in the USA. It's those pesky government regulations that enable product liability and make recalls compulsory.
There is no motivation for any automaker to expose their brand to increased product liability or recall, regardless of where the car is manufactured.
When multinational automakers build new plants in Mexico or anywhere else, they achieve higher levels of international safety and environmental standards than legacy plants, elsewhere.
Land is cheaper in Mexico.
Construction is cheaper in Mexico.
A new plant in Mexico is cheaper to build and maintain than in the US.
Pay does not matter. What matters is what the pay will buy in a particular location.
Generally speaking, nothing about a typical production line requires high skill or education. So many condemn the Minimum Wage Burger Flipper for demanding a higher Minimum Wage and benefits and seem to do so while ignoring a union who presents 1000 demands as a part of collective bargaining negotion for workers making 3 X Minimum Wage with rich benefits. When you get right down to it, the job functions can be comparable in terms of education and skill necessary to do the job.
The newer the plant facility the higher the investment in industrial robotics. Fewer employees are required to produce more output. Those employees may need more skill and training. There is no shortage of higher skilled trainable workers in Mexico.
For now, they are likely grateful for the opportunity to be employed with Ford Motor.
We Americans tend to hang onto perceptions of American execptionalism, despite evidence to the contrary, as it relates to rule- based jobs.
Absolutely correct. He may come across as a buffoon, and if elected will be fought at ever turn by Congress. But when it comes to picking a Supreme court justice or two, or three I feel he will pick ones that are on the right side of things. I don't think that with HRC, or Johnson.
POTUS does not pick SCOTUS justices.
A POTUS nominates.
The Senate either confirms or rejects.
POTUS may withdraw a nomination and tends to do so when it's unlikely, the Senate will confirm.
What some seem to forget , or just don't know is assembly is the small portion of it. Sure it sucks seeing these jobs go over the border but for those that keep bleating "buy Nissan, buy Toyota, buy Honda !" they may be assembled here in the US but where is the R&D done ? Sure the Asian OEM's have R&D centers here in the US, I've worked at two of them but not ALL the models sold here are designed and engineered here. That is where the majority of the workforce is. Designers, Engineers, Suppliers and their workers etc. , tier after tier of people that are involved in the R&D of a vehicle. So that assembled in the US Brand X mobile might have employed many more foreign workers than you think.
So even though you are buying an assembled in MX vehicle, the majority of the people involved in that vehicle were US workers, and that is where I'm putting my money.
For the record, I'm a designer in the automotive industry.
Yes, a very large ripple effect that will be gained in Mexico and not in the US. We've had 40 years of this stuff, on steroids since NAFTA. It's time for a change - put Americans first for once. Or pay the consequences. After all, we are not communists.
Are not Communists the most nationalized and protective, the opposite of free market forces?
What some seem to forget , or just don't know is assembly is the small portion of it. Sure it sucks seeing these jobs go over the border but for those that keep bleating "buy Nissan, buy Toyota, buy Honda !" they may be assembled here in the US but where is the R&D done ? Sure the Asian OEM's have R&D centers here in the US, I've worked at two of them but not ALL the models sold here are designed and engineered here. That is where the majority of the workforce is. Designers, Engineers, Suppliers and their workers etc. , tier after tier of people that are involved in the R&D of a vehicle. So that assembled in the US Brand X mobile might have employed many more foreign workers than you think.
So even though you are buying an assembled in MX vehicle, the majority of the people involved in that vehicle were US workers, and that is where I'm putting my money.
For the record, I'm a designer in the automotive industry.
IIRC Ford made a big PR event of the 2015 Mustang being designed by input by teams from around the world. The new Mustang was designed to have global appeal. I notice some diehard Mustang fans dislike the new look due to appearing too Euro or Nipponish.
People assume that any trade deal once passed is forever. Baloney. Any administration has the obligation to review any current deals and either accept them, renegotiate them, or cancel them.
Requires Congress to approve.
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