Ford chooses China, not mexico.... Is that better?

1,484 Views | 13 Replies | Last: 6 yr ago by BigPuma
SteveA
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9:27a, 6/21/17
AG
https://www.nytimes.com/2017/06/20/business/ford-focus-china-production.html


Ford decides not to invest in Mexico..... So they pick China instead. I guess the child labor is easier to fit in the tight spaces of the Focus.

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Goose
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9:34a, 6/21/17
AG
My hunch would be that its because long-term they expect to sell a lot more of them right there in China and the surrounding countries than they would have in Mexico and in North/South America. Totally a guess though.
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SteveA
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9:43a, 6/21/17
AG
I imagine that you are correct, but the article said that they will be exporting some of those from China to the US.
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03_Aggie
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9:48a, 6/21/17
Quote:
One industry analyst said Tuesday that automakers in general were looking to build popular S.U.V. models in the United States and concentrate production of slow-selling, less profitable passenger cars in lower-cost nations.
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KY AG
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10:18a, 6/21/17
AG
The low-end car segment is cutthroat right now, with virtually no margin in spite of reasonable sales.

Toyota is building the Corolla in Mississippi, and completely revamped their pay-scale so they could pay the MS employees "local-competitive" wages (read: cheaper) rather than using a nationwide pay-scale. They are also using a boatload of "temporary" employees (read: even cheaper) rather than team members.

Honda moved the FIT production to China (or Mexico, I can't remember).

GM is now making the Chevy Cruze in Madagascar with underpaid giraffe labor. This is completely fabricated, but knowing GM it may actually be true.


So, in our post-NAFTA, emerging China world, this is not that big of a surprise albeit extremely disappointing.
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KY AG
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10:26a, 6/21/17
AG
I will also say, don't view that post above as supporting this decision.

Ford is in bad shape right now (look at their stock price over the past 5 years) and has been making really stupid decisions ever since Mulally left - this is just another one. All the momentum he brought was completely destroyed in less than 12 months of the Mark Fields era.

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91AggieLawyer
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10:54a, 6/21/17
AG
They just need to discontinue the US sales of this car and no one would care where it was made.

Do we really need the low end here? Or, better put, this many low end models?
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EMY92
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In reply to 91AggieLawyer • 11:09a, 6/21/17
AG
Part of the reason that the economy models are so cut throat in the US is because the manufacturer has to sell them to get their average MPG up enough to meet the CAFE standards. The margin is in the bigger vehicles (trucks & SUVs).

If Ford stopped selling the small cars here, the Feds wouldn't let them sell the F150s.
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SteveA
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11:19a, 6/21/17
AG
How does Jeep skirt that MPG regulation?
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Goose
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In reply to SteveA • 1:08p, 6/21/17
AG
SteveA said:
How does Jeep skirt that MPG regulation?
They don't skirt it. But they manage to stay in compliance by not selling a full size truck or SUV that drags down their average.
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The Wonderer
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1:15p, 6/21/17
AG
So, in the end, the only loser here is Mexico. Ford will never (well, never say never) shutdown that Kentucky plant as it has produced Ford trucks and SUVs (and a lot of those buyers prefer 'Murica first type consumables) for decades and the Michigan plant gets the new Ranger to take the place of the outgoing Focus. A US job was never in jeopardy during any of this.
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Dr. Doctor
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2:44p, 6/21/17
AG
Part of the hybrid motors are made in Houston. In a free trade zone. I assume it is for moving to Mexico so they don't have to pay taxes on it.

Moving to China is just like the other manufacturers.

~egon
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BrazosDog02
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In reply to EMY92 • 12:06a, 6/22/17
AG
EMY92 said:
Part of the reason that the economy models are so cut throat in the US is because the manufacturer has to sell them to get their average MPG up enough to meet the CAFE standards. The margin is in the bigger vehicles (trucks & SUVs).

If Ford stopped selling the small cars here, the Feds wouldn't let them sell the F150s.


This the stupidest thING I've ever heard.

That sucks. Oh well, 'Murka, right?
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ShaggyAggie01
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2:03a, 6/22/17
AG
Wrong thread
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BigPuma
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In reply to BrazosDog02 • 9:51a, 6/22/17
AG
BrazosDog02 said:
EMY92 said:
Part of the reason that the economy models are so cut throat in the US is because the manufacturer has to sell them to get their average MPG up enough to meet the CAFE standards. The margin is in the bigger vehicles (trucks & SUVs).

If Ford stopped selling the small cars here, the Feds wouldn't let them sell the F150s.


This the stupidest thING I've ever heard.

That sucks. Oh well, 'Murka, right?
It may be stupid, But it isn't inaccurate.
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