The Detroit-based company and competitors such as Ford Motor Co. shifted more manufacturing to Mexico this year to capitalize on wages less than an eighth of those in the U.S. and factories that make fuel-efficient models. Through November, Mexican plants turned out 5 percent more vehicles than a year earlier, versus an estimated decline of 30 percent in the U.S. . . .
GM, for instance, has invested $3.6 billion in Mexico in the last three years. Its auto and light truck production there rose 28 percent in November, the national car industry association said on Dec. 9.
The company said total output in North America, including Mexico, fell 32 percent for the same month to 249,000 vehicles. GM declined to break out its Mexican production.
Ford spent $1.2 billion in 2005 to increase output in Hermosillo of its mid-size Fusion sedan. Production in Mexico from January to November rose 1.5 percent, while it fell 26 percent in the U.S. and 9 percent in Canada, it said.
Chrysler is building a $570 million factory near Saltillo, Coahuila, that will produce 440,000 engines a year, said Manuel Duarte, a Mexico City-based spokesman. It has canceled one of its two work shifts at a light truck plant there, Duarte said . . .
The wave of investment helped Mexico expand its production to more than 2 million cars in 2007 from 1.54 million in 2003. Mexican car output is forecast to rise to 3 million units by 2015, Magliano said.
Over the same period, the U.S. industry has gone in reverse, dropping 12 percent to 10.54 million vehicles last year from 11.92 million in 2003, according to CSM Worldwide. The seasonally adjusted annual rate through November plummeted to 8.71 million cars and light trucks, CSM Worldwide said in a Dec. 15 statement.
Friday, December 19, 2008
Bush Gives Bailout Dollars To Big 3 As They Move Jobs To Mexico
Saying he can't stand by and watch the American auto industry go bankrupt, President Bush is offering the Big 3 automakers more than $17 billion in TARP funds appropriated for the bailout of the banking industry in the form of loans. What you didn't hear President Bush or the lawmakers who are pushing for this bailout discuss was how these same automakers are increasing their investments in Mexico as they divest here. That's right. While U.S. automakers close more plants in the U.S., they are expanding their investment south of the border where workers earn about $3 an hour. Some pertinent facts from Bloomberg News: