Ford shifting all U.S. small-car production to Mexico

[mystery-ak]

Ford shifting all U.S. small-car production to Mexico
Greg Gardner, Detroit Free Press 1:03 p.m. EDT September 14, 2016

CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive.
Ford focus



Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn.

"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.

The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Shifting their assembly to Mexico can reduce costs to a point. But some of these cars are over-engineered.

more
http://www.freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/

[sinkspur]

This will set Trump off.  Another embarrassing tirade and d**k waving.

[XenaLee]

Ford shifting all U.S. small-car production to Mexico
Greg Gardner, Detroit Free Press 1:03 p.m. EDT September 14, 2016

CEO Mark Fields told investors the move is part of plans to make production simpler and less expensive.
Ford focus



Ford is shifting all North American small-car production from the U.S. to Mexico, CEO Mark Fields told investors today in Dearborn.

"Over the next two to three years, we will have migrated all of our small-car production to Mexico and out of the United States," Fields said.

The industry has known for decades that domestic manufacturers struggle to make a profit on small cars. Shifting their assembly to Mexico can reduce costs to a point. But some of these cars are over-engineered.

more
http://www.freep.com/story/money/cars/ford/2016/09/14/mexico-ford-shiftng-us-car-production-mexico/90355146/

Over-engineered?  Is that a PC/nice way of saying that they are ""crap""?  Hecho en Mehico will be the new label for substandard products now.  China will not be pleased.

[andy58-in-nh]

Over-engineered?  Is that a PC/nice way of saying that they are ""crap""?  Hecho en Mehico will be the new label for substandard products now.  China will not be pleased.

Actually, they are over-engineered in the sense of manufacturing processing requirements. There are far more options in color (over 300) and optional equipment variations for these models than the consumer market currently demands. Also, the market for smaller cars is increasingly migrating out of the U.S. and to places like Central and South America, where far fewer government regulations allow for cheaper production costs and thus, and more efficiency.

[XenaLee]

Actually, they are over-engineered in the sense of manufacturing processing requirements. There are far more options in color (over 300) and optional equipment variations for these models than the consumer market currently demands. Also, the market for smaller cars is increasingly migrating out of the U.S. and to places like Central and South America, where far fewer government regulations allow for cheaper production costs and thus, and more efficiency.

What happens when the oil glut ends and gas prices start going back up.  And they will.  All of those small cars will, once again, be in high demand.  A win-win for Mexico, a lose-lose for America....as usual.

[geronl]

they can't afford 6 weeks of paid leave

[GrouchoTex]

they can't afford 6 weeks of paid leave

 

[driftdiver]

What happens when the oil glut ends and gas prices start going back up.  And they will.  All of those small cars will, once again, be in high demand.  A win-win for Mexico, a lose-lose for America....as usual.

The oil glut that never was.   Gas prices are still higher then they should be.   The higher prices for most of Obamas time in office were intentional and the result of manipulation and over regulation.

[Restored]

A barrel of oil being over $100 may have been a contributing factor. Then OPEC noticed what was happening in Idaho and decided to bankrupt the US domestic market.

[Frank Cannon]

Who cares. US cars have been made in Canada and Mexico for years. Have a 1993 Century that was made in Mexico and I had a 1974 Montego MX wagon made in Canada. This has been going on for a half century.

[andy58-in-nh]

What happens when the oil glut ends and gas prices start going back up.  And they will.  All of those small cars will, once again, be in high demand.  A win-win for Mexico, a lose-lose for America....as usual.

If the oil glut ends (but in truth, it will not anytime soon because both supply and production capacity are significantly outpacing demand), then the market will respond appropriately. Smaller cars are not a likely response, especially as gas mileage continues to improve on the larger (and safer) vehicles most Americans prefer. The market for small vehicles in the US is fairly inelastic and highly correlated with urban areas, which is a rational response to the physical requirements for automobiles in such areas - limited parking, narrow streets, etc. In any event, restrictions upon free trade solve no problems and only prevent markets from acting rationally.

[XenaLee]

If the oil glut ends (but in truth, it will not anytime soon because both supply and production capacity are significantly outpacing demand), then the market will respond appropriately. Smaller cars are not a likely response, especially as gas mileage continues to improve on the larger (and safer) vehicles most Americans prefer. The market for small vehicles in the US is fairly inelastic and highly correlated with urban areas, which is a rational response to the physical requirements for automobiles in such areas - limited parking, narrow streets, etc. In any event, restrictions upon free trade solve no problems and only prevent markets from acting rationally.

I agree.  What is needed is lower corporate taxes and less government regulations on companies like Ford, not more regulations...which is exactly what we will get with Hillary or Trump.

[Jazzhead]

Over-engineered?  Is that a PC/nice way of saying that they are ""crap""?  Hecho en Mehico will be the new label for substandard products now.  China will not be pleased.

My son drives a Mexican-assembled 2001 Ford Focus.  It's been almostly completely trouble-free, and I wouldn't hesitate to buy another in term of quality.     

It's understandable why Ford wants to shift its small car production to Mexico.  What ticks me off is why they won't build the Fusion here.  That's a mid-size car, and most of its competitors (e.g., Chevy Malibu and Honda Accord) are assembled here.  I was shopping recently for just such a mid-size car, and crossed the Fusion off my list because I prefer to buy American. 

[Smokin Joe]

A barrel of oil being over $100 may have been a contributing factor. Then OPEC noticed what was happening in Idaho and decided to bankrupt the US domestic market.

What happened in Idaho?

[rangerrebew]

Maybe Ford figured these are jobs that Americans don't want to do.

[thackney]

Gas prices are still higher then they should be.

The problem of high price lies mostly with the dollar value, not inflated oil/gasoline prices.

[jmyrlefuller]

Who cares.

Auto workers who make these cars, and people looking for decent-paying work, that's who cares.

[Frank Cannon]

Auto workers who make these cars, and people looking for decent-paying work, that's who cares.

Well they can screw. The UAW is nothing but a monopoly. They have single handedly destroyed the domestic car industry and all of the members and leadership deserve to be living is soggy refrigerator boxes under a dilapidated bridge.

[Weird Tolkienish Figure]

So how come other countries that make their cars in the US? Should we be mad at them? Honda has major production facilities in the US. Where is the Japanese Trump to say that they should shift production back to Japan?

[Frank Cannon]

I had an argument one time with a tubby old lady on the streets of London over pigeons.  The next morning I spotted her sleeping in a refrigerator box next to a department store.

Don't leave me hanging. Who got to eat the pigeon?

[Oceander]

Well they can screw. The UAW is nothing but a monopoly. They have single handedly destroyed the domestic car industry and all of the members and leadership deserve to be living is soggy refrigerator boxes under a dilapidated bridge.

[Oceander]

So how come other countries that make their cars in the US? Should we be mad at them? Honda has major production facilities in the US. Where is the Japanese Trump to say that they should shift production back to Japan?

At least some of them are union-free, and some of the others are luxury brands that can afford to charge enough of a premium to cover the extra labor costs.

[Frank Cannon]

LOL.  She was yelling at my kid because he was chasing a pigeon.  I told her to back off and leave him alone.  So we yelled back and forth at each other for a bit.  She was in love with those pigeons.  When I saw her sleeping arrangements I understood.  LOL.

A British pigeon woman? Are you sure that happened or are you mistaking that episode in London for a scene from Home Alone 2?

[Smokin Joe]

That is hilarious.  It was just like that minus the smiles.  But no mistake made.  I lived it.  The broad was a crazy street lady whose only friends were pigeons.

Right. It's really quite simple. She was living on the cheep.

[geronl]

2 weeks ago Trump was saying bring jobs back to the hemisphere and his sycophantic nuts wore hats saying "Make Mexico Great Again Too"...