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Ford to invest $1.3 billion in northern Mexico plant

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Thread: Ford to invest $1.3 billion in northern Mexico plant

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    Ford to invest $1.3 billion in northern Mexico plant

    Ford to invest $1.3 billion in northern Mexico plant

    By Tomas Sarmiento
    MEXICO CITY | Fri Mar 30, 2012 1:25pm EDT

    (Reuters) - U.S. carmaker Ford Motor Co (F.N) will invest $1.3 billion in its stamping and assembly plant in the northern Mexican city of Hermosillo, creating 1,000 jobs, a top company executive said on Friday.

    Ford surpassed General Motors (GM.N), to become Mexico's No. 1 car exporter last year, exporting nearly 450,000 vehicles, up 17 percent from 2010 levels. Mexico overall exported a record 2.14 million cars in 2011, a 15.3 percent jump from a year earlier.

    "This investment allows us to produce the all-new Ford Fusion and the Lincoln MKZ line-ups, helping us to meet growing consumer demand," Mark Fields, who is Ford's president for the Americas, said at an event with Mexican President Felipe Calderon in Mexico City.

    Calderon said the investment would help Mexico edge up the list of the world's top auto exporters.

    "Mexico in January rose to fifth place in global auto exports ... and I think we are about to move into fourth place," he said.
    Ford's announcement comes as Mexico has been at loggerheads with regional powerhouse Brazilover the car industry after a surge in Mexican auto exports in 2011 compounded a glut of cheaper imports which are hurting Brazil's manufacturers.

    Mexico gave in to Brazilian pressure earlier this month and agreed to slash auto sales to the southern giant, fixing an export quota for the next three years to save a decade-old trade agreement.

    Ford's Hermosillo plant, which opened in 1986, already employs around 2,700 staff, according to the company's website.
    Ford, the No. 2 U.S. automaker, said in a statement that the new investment comes on top of $3 billion invested in Mexico over the past decade.

    Seven foreign automakers have established their own plants in Mexico, also including Chrysler/Fiat (FIA.MI), Honda Motor Co (7267.T), Nissan Motor Co (7201.T), Toyota Motor Co (7203.T)(TM.N) and Volkswagen (VOWG_p.DE).

    (Reporting by Tomas Sarmiento. Editing by Simon Gardner and Richard Chang)

    From Ford to invest $1.3 billion in northern Mexico plant | Reuters

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    Maybe this will keep some of the illegal spics from hoping across the border in the coming years. It's only 1000 new jobs in the factory. But, suppliers will also be setting up shop nearby, as well as restaurants, apt complexes, supermarkets, etc. to meet new demand brought by the factory.

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    It's funny people complain about foreign cars taking away jobs yet i work for Mercedes and they produce vehicles in the US while Ford is outsourcing go figure.

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    Quote Originally Posted by redz View Post
    It's funny people complain about foreign cars taking away jobs yet i work for Mercedes and they produce vehicles in the US while Ford is outsourcing go figure.
    I can understand (though still ***** about) a U.S. company moving their manufacturing to Mexico or another country where it's cheaper to produce their wares, but what's Mercedes' incentive to manufacture here? Do they beat import taxes or what?

    Mercedes-Benz - Wikipedia, the free encyclopedia

    In 1958, Mercedes-Benz entered into a distribution agreement with the Studebaker-Packard Corporation of South Bend, Indiana (USA), makers of Studebaker and Packard brand automobiles.[7] Under the deal, Studebaker would allow Mercedes-Benz access to its dealer network in the U.S., handle shipments of vehicles to the dealers, and in return, receive compensation for each car sold. Mercedes-Benz maintained an office within the Studebaker works in South Bend from 1958 to 1963, when Studebaker's U.S. operations ceased. Many U.S Studebaker dealers converted to Mercedes-Benz dealerships at that time.

    Factories

    Besides its native Germany, Mercedes-Benz vehicles are also manufactured or assembled in:

    • Argentina (buses, trucks and the Sprinter van. The first Mercedes-Benz factory outside of Germany)
    • Austria (G-Class)
    • Bosnia and Herzegovina
    • Brazil Manufacture the trucks, buses and the C-Class. Established in 1956. The A-Class (W168) was produced from 1999 to 2005 as well.
    • Canada
    • Egypt via Egyptian German Automotive Company
    • Hungary
    • India
    • Indonesia


    • Iran (Not since 2010)
    • Malaysia
    • Mexico
    • Nigeria (buses, trucks, utility motors and the Sprinter van)
    • Philippines
    • Russia (E-Class)
    • Spain, factory at Vitoria-Gasteiz, Mercedes-Benz Vito have been built there.
    • South Africa
    • South Korea (Mercedes-Benz Musso and MB100 models manufactured by SsangYong Motor Company)
    • Thailand (assembly of C, E and S class vehicles by the Thonburi Group)
    • Turkey
    • United Kingdom—SLR sports car was built at the McLaren Technology Centre in Woking. Brackley, Northamptonshire, is home to the Mercedes Grand Prix factory, and Brixworth, Northamptonshire is the location of Mercedes-Benz HighPerformanceEngines
    • United States The Mercedes-Benz M-Class Sport Utility, the R-Class Sport Tourer, and the full-sized GL-Class Luxury Sport Utility Vehicle are all built at the Mercedes-Benz production facility near Tuscaloosa, Alabama.
    • Vietnam Passenger cars and commercial vehicles. Established in 1995


    Also found this courtesy of a quick Google...

    Mercedes C Cars to be Built in U.S.

    Move will reduce both labor costs and exposure to foreign exchange pressures


    More @ IndustryWeek : Mercedes C Cars to be Built in U.S.

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    Some of those countries only make parts for Mercedes. i`m in Canada and other than Magna making the smart car frames I don`t think there is anything else produced here. You are correct the import taxes are negated by producing locally. Under the free trade agreement they can also bring the vehicles in to Canada without paying the import fee here too. But it's a win win for jobs here and for the Company.

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    Foreign companies seem to get the fact that it's a win-win by producing here. They help stimulate the economy by employing people and the resulting cascade of jobs that creates and people buy more of their products.

    Interestingly, it isn't Honda that builds cars here in the US. American Honda does.
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    Well....these jobs are not going to the Chinese, but to the Mexicans.

    It's an accurate statement that our current spending will not be increasing the debt We've stopped spending money that we don't have.

    -- Jack Lew, then director of the Office of Management and Budget, in Feb. 16, 2011 testimony before the Senate Budget Committee.

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    What about the dodge chargers assembled in Canada. big deal?

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    Quote Originally Posted by SFW View Post
    What about the dodge chargers assembled in Canada. big deal?
    Oh! Those Canadians will stop at NOTHING in their attempts to destroy the United States.

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    Quote Originally Posted by SFW View Post
    What about the dodge chargers assembled in Canada. big deal?
    Unlike Mexico, their country doesn't deserve to die.

    Also, when you think of quality, who comes to mind, Mexico or Canada?


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    Quote Originally Posted by Zaphod View Post
    Foreign companies seem to get the fact that it's a win-win by producing here. They help stimulate the economy by employing people and the resulting cascade of jobs that creates and people buy more of their products.

    Interestingly, it isn't Honda that builds cars here in the US. American Honda does.
    don't buy into the BS..

    the only foreign company's that are allowed to do so are all major holders of US debt in T-notes. by allowing them to manufacture from inside the US they do not have to pay import tariffs and that goes for US company's that manufacturer in foreign country's. but because of one-sided trade agreements there is not an equal amount of inward foreign direct investment as goes out to that country from the US.

    the US is the only country in the world that allows unlimited capital inflows. and remember that all holders of US treasury notes are paid interest, at rates substantially higher than what US citizens make on deposit accounts in US banks.

    http://www.treasury.gov/resource-cen...uments/mfh.txt
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    Quote Originally Posted by DOMS View Post
    Unlike Mexico, their country doesn't deserve to die.

    Also, when you think of quality, who comes to mind, Mexico or Canada?
    Well, Some of those mexican pinatas are VERY hard to destroy. Ive seen it myself. But then again, the sticks were made in china.

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    Quote Originally Posted by redz View Post
    It's funny people complain about foreign cars taking away jobs yet i work for Mercedes and they produce vehicles in the US while Ford is outsourcing go figure.
    It pisses me off.

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    Quote Originally Posted by redz View Post
    It's funny people complain about foreign cars taking away jobs yet i work for Mercedes and they produce vehicles in the US while Ford is outsourcing go figure.
    Ford does manufacture in Germany just not that many models. Germans do not have as many cars as Americans do per family so it's not near the entire production line just a couple of models.

    US manufactures move production to Mexico to save on labor costs and benefits, there are none...then they ship the finished product back to the US for premium prices. the same thing applies to appliance and clothing manufactures that have relocated production to South East Asia country's, etc.

    but those same country's do not purchase US products. they are supplied knock-offs via China's black market. it's one of the reasons why most US trade agreements are one-sided.
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    It's a stamping and assembly facility, how much of the parts come from the US? I'd imagine the engine block, transmission, etc were probably made in the US....

    One of our PV manufacturers (Kyocera) has plants in San Diego and Tijuana, the pv cells ship from Japan and then they assemble the module at either facility. Most of ours we get from Mexico unless a project calls for ARRA(Buy American). It's the only manufacturer we have yet to submit a warranty claim for, even the ones we get from another manufacturer that are made from completely raw materials in the US we have had a few warranty returns. So it all goes into how the company handles its Quality Control.

    I have 16 Mexican made Kyocera's on my house just for that reason....still producing at peak power!
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    here is some info from the Chicago Fed it dates pre-recession in regards to autos, auto-parts, etc. to Mexico and Canada..
    Attached Files Attached Files
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    More proof America is a lie.

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    Quote Originally Posted by GeorgeForemanRules View Post
    More proof America is a lie.
    only since about 1791 that's when Hamilton talked Washington into establishing the Bank of the United States, with a similar charter/constitution (fractional reserve system) that was held by the Bank of England. the UK was in debt even BEFORE Adam Smith (Ricardo & Hayek) and the formal release of capitalism and it's economic principles.

    the revolutionary and civil wars were both fought over banking. the US was debt free until the Bank of the United States was established....government debt has steadily increased ever since.

    capitalism AND the combination of lobbying w/ a fractional reserve banking is the real scam....

    Civil War *
    Total estimated cost of the Civil War: $4.2 billion (about $84 billion in today's dollars)
    Cost as a percentage of GDP in peak year: 11.3 percent (1865)
    Total debt at the start of the Civil War: $64.8 million (about $1.296 billion in todayÕs dollars)
    Total debt at the start of the Civil War: $2.2 billion (about $44 billion in todayÕs dollars)
    Percentage increase in public debt: 1,543 percent

    War on Terror
    Total estimated cost (as of July 2010): $1.121 trillion
    Cost as a percentage of GDP in peak year: 1.2 percent (2008)
    Total public debt at the start of the Iraq War: $6.2 trillion
    Total public debt today (2010): $14.3 trillion
    Percentage increase in public debt: 230 percent
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    Just think of what other uses that money could have been applied towards.

    Hookers and booze? What?!

    Definitely towards something other than blowing **** up and killing/maiming/disfiguring people.

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    it's so ridiculous at this point that it seems as if they are even getting tired of "faking" attempts at helping.

    in the 80's the DOJ at least brought up charges on some of the banks, credit rating agency's, etc. in regards to the S&L crisis...9T in US homeowner wealth gone, 5 million jobs lost and nothing....

    but if you download some music or movies of the Internet the Feds bust down your door with assault rifles all up in your grill....
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    More proof Communism was a failure.

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    Quote Originally Posted by GeorgeForemanRules View Post
    More proof Communism was a failure.
    the only country's left in the world not indebted to international bankers are either communist or psuedo-democratic republics like Iran (total gov debt less than 14B), basically muslim states. I do not know hardly anything about Islam but I do know that they did get the anti-usury thing right, it's for suckers.
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    Quote Originally Posted by LAM View Post
    it's so ridiculous at this point that it seems as if they are even getting tired of "faking" attempts at helping.

    in the 80's the DOJ at least brought up charges on some of the banks, credit rating agency's, etc. in regards to the S&L crisis...9T in US homeowner wealth gone, 5 million jobs lost and nothing....

    but if you download some music or movies of the Internet the Feds bust down your door with assault rifles all up in your grill....

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    I used to buy "american" cars like Ford, GM and Chrysler. But more and more the "foreign" car companies are employing US workers, and the US companies are going overseas.

    I won't buy another Ford after they fired my dad one year before his full retirement after working there for something like 34 years. These American companies aren't nearly as american as you think. Not many big 3 manufacturing jobs in Detroit, more like Hyundai.

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    volkswagon built a new manufacturing plant nearby in chatanooga, tenessee, they were spending one billion a year in exporting to the US so they decided to build here... My friend got a job as a software engineer there, moved her family two houses from me to chatanooga. SHe had already lost her job from Lithonia Lighting. Kia just built a plant here in south georgia.
    Last edited by bandaidwoman; 04-02-2012 at 11:21 AM.
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