Ford Moves More Car Production to Mexico, Slashing Labor Costs

[Judi Lynn]

Ford Moves More Car Production to Mexico, Slashing Labor Costs
Published 14 September 2016

U.S. automaker Ford announced Wednesday that all of its small-car production will be moved out of the U.S. to lower-cost Mexico.

"We will have migrated all of our small-car production to Mexico and out of the United States" over the next two to three years, CEO Mark Fields told Wall Street analysts at an investor conference hosted by the automaker.

Fields said that Ford planned to shift a majority of its small car production around the world to low-cost countries by 2019, which could affect Ford's Western European car production.

Building cars in mexico allows the major corporation to save significant amounts of money in cheap labor, shipping cost and reduced taxes. Financial agreements between the U.S. and Mexico have long allowed major international companies to double their profits while giving very little to Mexico’s local economy.

More:
http://www.telesurtv.net/english/news/Ford-Moves-More-Car-Production-to-Mexico-Slashing-Labor-Costs-20160914-0042.html

LBN:
http://www.democraticunderground.com/10141573095

[kimbutgar]

1. Well when I buy a new car next year it won't be a Ford.

[Judi Lynn]

2. What a disappointment. The US taxpayers got them out of financial disaster, too. n/t

[EX500rider]

4. Ford was not part of the bail out.

[Judi Lynn]

3. Ford Moving Small Car Production to Mexico is a Political Red Herring

Ford Moving Small Car Production to Mexico is a Political Red Herring
It’s Likely the Only Way to Make Money Building the Focus
By: Todd Lassa September 16, 2016

Ford Motor Company CEO Mark Fields probably couldn’t hold back on confirming the worst kept secret in Metro Detroit/Dearborn. The company’s small car production will leave the Michigan Assembly Plant for Mexico in 2018. Ford pretty much confirmed this last April when it announced a $1.6-billion investment in a new assembly plant south of the border, although it didn’t say at the time which cars would be built there. Fields’ announcement Wednesday coincides with the Election Year’s high season, traditionally after Labor Day, though the Trump v. Clinton presidential race really never took a late-summer break after the GOP and Democratic conventions.


Fields could have waited until November 9, but, what the heck? GOP nominee Donald J. Trump has been talking about Ford jobs moving to Mexico since he was ruling the primaries, and Trump and Hilary Clinton are trying to convince voters they’re more anti-trade agreement than each other, anyway.

Mainstream media are reporting that the Ford Focus and C-Max will leave Michigan Assembly in Wayne for San Luis Potosi state, but that’s only partially true. The Ford Focus will move there in time for a major 2019 model year update. Ford is expected to drop the C-Max hybrid/plug-in hybrid after the ’19 model year, which the company could build out before it retools Michigan Assembly. At some point, it will be replaced with a battery-electric powered Chevrolet Bolt competitor, a car I first reported on back in March 2015. It looks like the new San Luis Potosi plant will build just the Ford Focus, at first.

Michigan Assembly is not closing. If there’s any change in employment levels there, Ford should be adding shifts and workers. Part of that worst kept secret, a part that Ford has yet to confirm, is that the all-new Ford Ranger midsize pickup truck will be built there. To take educated guessing further, there’s speculation that the 2021 Ford Bronco will join the Ranger two years later.

More:
http://www.automobilemag.com/news/ford-moving-small-car-production-mexico-political-red-herring/