Ford announces new assembly plant in Mexico.

[earlyre]

Originally Posted By: edwardh1
Originally Posted By: earlyre
Originally Posted By: bdcardinal
FWIW the build quality on my mom's 2014 Fusion built in Hermosillo is a lot higher than the build quality of my 2014 Mustang built in Flat Rock.
have you gotten bitten by drive line issues?
My Brother bought a 2016 EB w/performance pack last fall, and suddenly, within the last month,has been getting a strong vibration while driving. today he put the car up on blocks, rev'd it up, and the whole car was shaking.


what is an EB?

Eco Boost - in the case of his mustang, 2.3l DI Turbo 4Cyl.

 

[earlyre]

Originally Posted By: mrsilv04
Originally Posted By: dishdude
Nothing to do with the UAW...


...Why did Hyundai build in Alabama, and not in Michigan? Why is Honda now in southern Indiana, and not in Illinois? Why is BMW in South Carolina, and not in New York?

Yeah, nothing to do with the UAW. Riiiiiight.


actually both of those plants could have been right here in Ohio. Hyundai looked at a site about 30 min south of me(Wapakoneta, OH), Honda at a site 30 min west(Van Wert, OH). this area is already lousy with Honda suppliers and other facilities,as i said in another thread, and someone quoted me in this one, so obviously their decision had nothing to do with the UAW.

in reality, what swayed both companies to build where they did, were the sweetheart deals and kickbacks they got from the local, and state governments....

 

[opus1]

Originally Posted By: BobsArmory
And when you have cars built for $5 per hour wages you would think that the price of the car would go down. What we are seeing is a race to the bottom, no one will be happy until everyone gets paid Walmart wages.
^This

I have a real problem looking at a Hencho en Mexico Fusion and seeing a $30,000+ sticker. I would think cheap labor = less expensive car, but what do I know?

 

[OneEyeJack]

Why would you want such a plant in the US. All they would do is exploit people by making them work 40 hours a week. These jobs would pay more than minimum wages and you know what that would mean. There'd be no one left to supersize their meals and hand them packets of ranch dressing. These employees would have to pay their own way when it comes to food, housing and healthcare. Building a new plant here would undermine all the good work the government and Walmart has done for us over the past few decades to prepare us for our destiny.

 

[Charlie1935]

1926, Ford Motor Company becomes one of the first companies in America to adopt a five-day, 40-hour week for workers in its automotive factories. The policy would be extended to Ford’s office workers the following August.

Henry Ford’s Detroit-based automobile company had broken ground in its labor policies before. In early 1914, against a backdrop of widespread unemployment and increasing labor unrest, Ford announced that it would pay its male factory workers a minimum wage of $5 per eight-hour day, upped from a previous rate of $2.34 for nine hours (the policy was adopted for female workers in 1916). The news shocked many in the industry–at the time, $5 per day was nearly double what the average auto worker made–but turned out to be a stroke of brilliance,

Nothing about any union.

 

[goodtimes]

Originally Posted By: mrsilv04
I'm not sure who is doing the most to price me out of the new vehicle market... the manufacturers (with [censored] like aluminum bodies, which does nothing but increase the cost), the union (gimme, gimme, gimme more money), or the government... who keeps dictating new standards and regulations.

Of course, is Ford going to lower the price of these foreign made vehicles, when their production costs are lower? No.

The consumer will continue to take it in the neck, just like always. Once I pay for all of the increased union demands, and the increased government demands....

The government is the people, you included, the people want new standards and regulations. I do. For every UAW blamer, how much are you making and for doing what? You want others to work for nothing, how are they going to pay the high rents? Ford does it because they are on a profit roll. For most business owners patriotism flies out the window when it means they have to have a smaller yacht if they hire Americans. The problem is not the worker who is trying to live an average life and raise a family.

 

[HerrStig]

+1

 

[zzyzzx]

Originally Posted By: dishdude
Nothing to do with the UAW, how do you compete with $5 a day wages in Mexico?


With tarrifs and automation. Ross Perot (and Trump) are right, again.

I also blame stupid short sighted consumers who don't understand that what goes around, comes around.

 

[Mr Nice]

Originally Posted By: mrsilv04
http://www.cnbc.com/2016/02/07/ford-to-b...ountry-wsj.html

"The move may heighten the debate over cheaper foreign labor. According to the Bureau of Labor Statistics, Manufacturing labor costs in Mexico are approximately 1/5 of those in the United States."


Will Donald allow it ???

 

[zzyzzx]

Originally Posted By: edwardh1
most of the problems I had with 70s and 80s GM cars were design, engineering, bad material choices and "cheapening" issues, or failure to fix known for years manufacturing problems, none of which were caused by the union.


One could argue that they would maybe not have had to cut corners so much if it were not for bloated union wages and benefits.

 

[totegoat]

Consumers don't see any savings on products made by cheap labor. What a crock.

 

[SwampSurvivor]

Originally Posted By: Trav
+1 The UAW has been raping the companies for decades now they raped the employees out of their jobs. They all got exactly what they ordered.


But, the people who have lost their job over the foolishness that is the UAW, will still hang out at the union bars, union house and talk about the good old days and keep paying dues hoping the union will find them another job

 

[lubricatosaurus]

Originally Posted By: zzyzzx
.I also blame stupid short sighted consumers who don't understand that what goes around, comes around.
That will keep some folks from buying the Chinese-made Buick crossover vehicle. http://www.detroitnews.com/story/business/autos/general-motors/2015/12/04/buick-envision/76795170/

What car will be made by Ford in Mexico on this news? ................. I did hear the current Ford Focus/C-Max will be built in Mexico in 1.5 years from now, currently in Michigan, although Ford says they might use the plant for something else (??).

 

[Kestas]

Originally Posted By: Charlie1935
1926, Ford Motor Company becomes one of the first companies in America to adopt a five-day, 40-hour week for workers in its automotive factories. The policy would be extended to Ford’s office workers the following August.

Henry Ford’s Detroit-based automobile company had broken ground in its labor policies before. In early 1914, against a backdrop of widespread unemployment and increasing labor unrest, Ford announced that it would pay its male factory workers a minimum wage of $5 per eight-hour day, upped from a previous rate of $2.34 for nine hours (the policy was adopted for female workers in 1916). The news shocked many in the industry–at the time, $5 per day was nearly double what the average auto worker made–but turned out to be a stroke of brilliance,

Nothing about any union.

Not many people remember how agrarian our country was back then, and that the average person worked on a farm. People toiled all day, sometimes seven days a week, to make a living. To some, manufacturing was an escape from the hard work of the farm, and one would only work nine hours a day, six days a week, and make good money.

 

[zzyzzx]

Originally Posted By: totegoat
Consumers don't see any savings on products made by cheap labor. What a crock.


+1. This is exactly why when they are required to make stuff in the USA at some future point in time, you won't necessarily see much in the way of price increases.

 

[Danh]

The reports I see say Ford will not reduce US employment as a result of this new plant. The Wayne, MI facility that makes the Focus and C-Max will be converted to the new Ranger pickup and Bronco SUV. On the other hand, is a missed opportunity to increase Ford's US workforce.

It's a curious thing: Honda seems able to make an Accord profitably with a US assembly plant and 70-80% US/Canadian parts content. Yet the equivalent Ford Fusion has to be assembled in Mexico with 25% or so US/Canadian parts to make financial sense.

For all of those complaining about Ford's decision, just don't buy the brand; you may be doing the economy more good with (for example) and Accord or Civic rather than a Fusion or Focus.

 

[CT8]

That is the plan.
Originally Posted By: BobsArmory
And when you have cars built for $5 per hour wages you would think that the price of the car would go down. What we are seeing is a race to the bottom, no one will be happy until everyone gets paid Walmart wages.
That is the plan!!!

 

[philipp10]

Lots of mis-informed posts here. Look at it this way:
1. If Ford is to serve the growing Mexican market, there is no way they can afford to build them in the US and export. Mexicans cannot afford that.
2. The margins on a Ford Focus are razor thin, probably less than 5%. Every dollar counts. The UAW wages and benefits eat into these thin margins.
3. Ford does not (and should not) price their cars based upon what they cost to build. They price them on what the market will bear. Therefore if they build them for less in Mexico, why should the price change? As a shareholder of Ford, I want my profits maximized. Not priced because Joe Blow in the US cannot afford one.
4. Adding production in Mexico spreads the design and engineering costs over greater numbers....lowering Fords fixed costs to get the Focus to market.
5. If NAFTA had NOT passed what would have happened? Most likely some of the plants now in Mexico would have gone to China. Would you rather they be in China or Mexico, helping to stabilize your southern neighbor. I think I know the answer.
6. And yes, it is somewhat a race to the bottom but the alternative would be paying even more for cars. Therefore do we come out ahead not going with the most efficient producers? In effect, we could stop all auto imports but be ready for significant price increases and more UAW clout. I for one do not feel it is fair to give one group, the UAW favors over anyone else.

 

[SatinSilver]

Originally Posted By: Danh
It's a curious thing: Honda seems able to make an Accord profitably with a US assembly plant and 70-80% US/Canadian parts content. Yet the equivalent Ford Fusion has to be assembled in Mexico with 25% or so US/Canadian parts to make financial sense.


Honda's workers are not in union. When I toured the Marysville plant they all seemed upbeat and friendly. Kind of cool seeing the operation. Same way with the Camry plant in KY. No union workers and they start out making $23/hour as of a few years ago. They don't seem to work them to death and treat them decent in a clean environment which goes a long way with most people.

 

[Quattro Pete]

Originally Posted By: Danh
It's a curious thing: Honda seems able to make an Accord profitably with a US assembly plant and 70-80% US/Canadian parts content. Yet the equivalent Ford Fusion has to be assembled in Mexico with 25% or so US/Canadian parts to make financial sense.

Maybe you missed this earlier comment...

Originally Posted By: earlyre
Within a 90 minute drive from here, Honda has 2 assembly plants, an engine plant, and a transmission plant, along with many suppliers owned and run by unrelated (wink wink) Japanese companies. ALL of them hire through temp services. Starting around $9/hr, no benefits. They all promise if you make it to 2 years, you'll be hired on as a regular employee. But every person I've known who has worked there, gets mysteriously let go at least a couple months shy... With more suckers lining up for their jobs...

Also, Honda in the 35 or so years they have been operating in OH, haven't paid one cent in property taxes. They have made it quite clear, that if their abatement goes away, so will they...