Filed under: Plants/Manufacturing, Ford
Breaking! Leaked document says Ford investing $9.2 billion in Mexico
It looks like Ford's "Way Forward" runs through Mexico, if a document leaked by a Ford employee can be believed. A Detroit-area newspaper, The Oakland Press, broke the story Wednesday, outlining the contents of a 28-page confidential document about "The Way Forward - Mexico."The Mexico plan could create as many as 150,000 jobs in Mexico over the next decade, as the company leverages the low cost of its Ford of Mexico operations. The plan reportedly includes revamping existing plants and building a new facility.
The south of the border version of the Way Forward plan, which has been presented to the Mexican government, says that Ford's new investment in Mexico could total $9.2 billion by 2012.
It's probably safe to assume that Mark Field's speech to the U.S. Chamber of Commerce Wednesday, in which he asked for federal government assistance (to upgrade U.S. factories, among other things) didn't cover Ford's Mexico plans. Talk about bad timing...
[Source: Oakland Press]
Reader Comments (Page 1 of 2)
Gardiner Westbound 4:26PM (6/14/2006)
"Buy American" applies to purchasers, not manufacturers.
Reply
igor 4:32PM (6/14/2006)
yeah... it is unfortunate for Ford. .this wil lcreate ripples deapite the fact that it is
1) a simple sales pitch to Mexico to see how much incentives this could generate
2) exaggereated as all salespitches.. the numbers are based on ideal conditions and then some - we all know the trick..
3) if this does happen. Ford is really simply following a trend.. they would be the only auto maker to make - segment cars in the US .. all others including Chevy are importing them - DCX will likely import them as well.
All other politics aside, theerson who leaked this needs to be fired imemdiately.. if they are so upset about working for Ford, they are willing to leak confidential information about a multibillion proposal, they need ot be fired and sued.
Igor
Reply
Brad 4:44PM (6/14/2006)
It's no surprise--UAW is killing the Big 3, so the Big 3 move to Mexico, where there is no UAW. I'd move too.
Reply
Carlos 4:51PM (6/14/2006)
Proof that Big 3 profits don't stay in America. Not like it's a bad thing; a job's a job, whoever's doing it.
Reply
gbh 4:56PM (6/14/2006)
These rumors have been floating around for a little while now. Still not sure if it's a done deal or not, but it is hardly a surprise if it is.
EVERYBODY sources everything everywhere. There are no American cars. Any vehicle sold in the last 10 years has Asian electronics in it somewhere. Many have Chinese electronics. (Don't be too hard on Chinese electronics, DoD has been equipping our troops with them for years. They work quite well for certain, umm, applications.)
The cost of an average unskilled UAW worker is $80 per hour when you count their benefits package. The only volume product that generates enough margin to pay that kind of money for unskilled labor is white and powdery.
Of course, the macro problem looms larger and larger everytime companies are forced/decide to off-shore anything. Eventually, you start running out of consumers because former factory people are unemployed. The real problem of course is not that they're unemployed- it's that other than line work, most are unemployable. Our society must provide some real method of transitioning all those who are capable into other fields before it's too late.
Reply
MikeInNC 4:56PM (6/14/2006)
Brad. You are exactly right. Ford and GM product lines produced and sold in other countries seem to be doing fine everywhere but in the US. One reason, labor related costs.
Reply
Wanax 4:57PM (6/14/2006)
Ford is just doing their part to stop illegal immigration. Why cross the border to pick produce or clean rich people's houses when Mexicans can have jobs in Ford plants?
Reply
Robert Aitchison 5:32PM (6/14/2006)
I had a Ford Focus built in Hermosillo, Mexico and it was extremely well made. Even after three years of very hard driving I had no squeaks or rattles, in fact every problem I had with the car was directly related to Ford cutting corners or skimping on testing when they brought the car over from Europe.
I had the opportunity to ride in several other Foci built in Wayne, MI and nearly all of them, regardless of mileage, had rattles, squeaks, leaks or other issues directly related to shoddy assembly.
I'd buy a Mexican built car over a UAW built car any day of the week.
Reply
Mal Fuller 5:49PM (6/14/2006)
Before it's all over, US Citizens will be hopping the boarder into Mexico, in an effort to better themselves.
Reply
Howard Kerr 5:51PM (6/14/2006)
I can't believe this. In my previous post on the subject of Ford's asking for Federal help to build plants, I "suggested" Ford should not build another plant in Mexico or upgrade an existing plant in Mexico if they are going to ask for Federal money. My philosophy being, that if you need/accept money help from Uncle Sam, then don't ship jobs that are already here, out-of-country. If you need money help from the U.S. government, be prepared to hire U.S. workers.
And then, less than an hour later, this story breaks.
You know, I really want to buy Detroit (I've been out of a job for awhile, so I can't afford a new car) but these 2 stories....Ford, you are turning into another GM.
Reply
Mal Fuller 5:53PM (6/14/2006)
Before it's all over, US Citizens will be hopping the boarder into Mexico, in an effort to better themselves.
Reply
Mal Fuller 5:55PM (6/14/2006)
Before it's all over, US Citizens will be hopping the boarder into Mexico, in an effort to better themselves.
Reply
starlightmica 6:07PM (6/14/2006)
Robert Aitchison's experience with Mexican vs. US built Ford Focuses (Foci) correlates with Ford's own quality data - Hermilloso was one of the top, if not the top quality plant in North America.
So, it makes a lot of sense that Fusion/Milan/Zephyr/MKZ manfuacturing was assigned there. Since Ford wants to build more cars off the CD3 platform it makes sense to expand a plant that already does it well.
Reply
Ed 6:31PM (6/14/2006)
So they want the US government to give them money so they can stay in business and continue employing people in other countries?
Sorry, not quite seeing the "logic" there. Given that corporations of Ford's size pay next to nothing in income taxes in the US, I hardly see what interest the government could have in keeping Ford in business if they're not employing Americans.
Reply
Lithous 6:33PM (6/14/2006)
"Proof that Big 3 profits don't stay in America. Not like it's a bad thing; a job's a job, whoever's doing it."
No such thing as Big 3 anymore and it only shows that SOME of Ford's profits go outside. Most other U.S. manufacturing companies are worse than Ford or GM for outsourcing because they don't have the UAW to hold them in like Ford and GM do. Every iPod I ever saw was made in China (for instance). We received 15 computers from Dell last week, made in China. Didn't Dell used to assemble them here?
"Ford, you are turning into another GM."
As if Ford didn't have a plant in Mexico and GM has a ton of plants in Mexico? What do you mean, if you even know?
"Hermilloso was one of the top, if not the top quality plant in North America."
I believe the Oshawas and the (CTS/Lucerne) Michigan plants are tops in N.A. aren't they?
Reply
Ed 6:34PM (6/14/2006)
And for #3 Brad, I understand that it's a waste of time to argue "facts" with someone whose sole purpose is to Union-bash at the slightest provocation but there is "no UAW" in the deep south. So if the UAW is the problem, then Ford would be relocating to Alabama, not Mexico.
The problem isn't the UAW, dumbass. The problem is free trade agreements that allow manufacturers to move production to countries where they can pay people $3/hr. UAW or no UAW, the American manufacturing workforce simply can't compete with that. If you'd turn down the Rush Limbaugh for a minute you'd realize that.
Reply
TK 6:44PM (6/14/2006)
Ah, the "unions are killing business" chesnut. Oh man, the top 2% of the income bracket are loving you now. All they have to do is put out a few greedy talking points and knuckleheads like yourself will do the rest for them. You swallow... hook, line and sinker. Congrats, you corporate whore.
You fail to acknowledge the many other factors in the Big 3 demise. Trade agreements, increased competition, quality history, bland designs, and poorly executed marketing come to mind. You must be in the "America, right or wrong" crowd too, eh?
Reply
Lithous 6:55PM (6/14/2006)
"And for #3 Brad, I understand that it's a waste of time to argue "facts" with someone whose sole purpose is to Union-bash at the slightest provocation but there is "no UAW" in the deep south. So if the UAW is the problem, then Ford would be relocating to Alabama, not Mexico."
LMAO. I'm glad someone finally let Ford and GM know that there are no unions in the South.
This efficient Atlanta plant must not of had a union there because it is in the South and the force field would have zapped the union if they entered: http://money.cnn.com/2006/06/01/news/companies/plant_productivity/index.htm
I don't like outsourcing and I won't buy a car assembled in Mexico (or Canada) as long as there are vehicles assembled in the U.S. and there still are some contrary to people's rants on autoblog all the time.
Reply
joe 7:03PM (6/14/2006)
So let's see, Toyota and Honda are building more plants in the US and hiring more American workers. Ford "Moves Forward" to Mexico. Yeah guys, let's be patriotic and buy American!
Reply
iQuack 8:09PM (6/14/2006)
If I had a choice between buying one of two identical products: one union made, and one made by a non-union company, I'd pick the non-union made product.
Why? Because I'd assume that the union-made product had been slopped together my a bunch of whining malcontents who think they work for their unions.
The non-union products are likely to be made by people who take more pride in their jobs and their employers, and who understand who's paying them.
Reply