GM, Ford to Accelerate Growth at Mexico Plants Where Workers Get $26 a Day

[marmar]

GM, Ford Boost Mexico Output With $26-a-Day Workers (Update1)
By Thomas Black


June 9 (Bloomberg) -- Mexico’s share of North American auto production may rise at a quicker pace as General Motors Co., Ford Motor Co. and Chrysler Group LLC seek out workers making less than 10 percent of what their U.S. counterparts earn.

The lower labor costs may help the U.S. companies build smaller cars profitably amid demand for fuel-efficient vehicles in the wake of last year’s recession. Mexico’s gains will come at the expense of workers in the U.S. and Canada, said Dennis DesRosiers, president of DesRosiers Automotive Consulting Inc.

“There is going to be more capacity put into North America and Mexico is going to get more than its fair share,” DesRosiers said from Richmond Hill, Ontario.

Moves to Mexico may speed up when Chrysler and GM reduce some of the political pressure they face by paying back government bailout money, said Michael Robinet, vice president of global forecasting for CSM Worldwide in Northville, Michigan. The U.S. government has distributed about $80 billion in the Auto Industry Financing Program to support the industry.

DesRosiers says Mexico’s share of North American auto production will rise to 19 percent over the next decade from an average 12 percent in 2000 to 2009. Over the same period, the U.S. will lose 7 percentage points to 65 percent of the market and Canada’s share will hold at 16 percent, he said. ...........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=a3u2f1Lb_KE4&pos=11

[CBGLuthier]

1. Buy American. If you can figure out what the FUCK is american

[hobbit709]

2. Like I asked before

Is it better to buy an American brand car made my nonunion labor in Mexico or buy a Japanese brand car made by nonunion labor here?

[spoony]

6. Neither, false dichotomy

That's a question meant to excuse a person from choosing the correct answer: buy one of the many vehicles union made here.

[nichomachus]

22. And is there a list of those somewhere?

How do you know where your car is made and by whom?

I'm serious.

[Brickbat]

27. If you're looking for UAW-made in the USA (or CAW in Canada), here ya go.

http://www.uaw.org/cars

[nichomachus]

28. Thanks -- now I can't decide

between the Crown Victoria or the Corvette. :-)

Seriously, thanks

[Brickbat]

29. Hee!

You're welcome!

[nadinbrzezinski]

10. Actually small correction

the plants in Mexico are UNION.

Thought you might want to know.

[demosincebirth]

19. They are union in Mexico. They don't need as much as us to live on.

[blondeatlast]

5. You said it. nt

[Brickbat]

3. While I love my Fords...

...I make damn sure they're made in this country. I hate that this happens.

[texastoast]

4. How American of them

Are Saturns still built in the U.S. or did all that go away when GM bought them out?

[EOTE]

7. GM never "bought out" Saturn.

Saturn was created as a subsidiary of GM and have always been a part of GM. Initially, they operated outside of GM with their own production facility, but it's always been a subsidiary.

[texastoast]

12. Thanks.

I didn't know that.

[AndyA]

15. Isn't Saturn dead?

I think what's out there is all there's going to be, unless I missed something. :shrug:

[EOTE]

20. By the end of this year, yes.

I believe that GM has no further plans for Saturn after October.

[SidDithers]

8. Buy American!! Yeah!!...nt

Sid

[blondeatlast]

9. Indeed--

Central and south american, that is.

[Commie Pinko Dirtbag]

11. Mexico is North America. Sorry for the Geography nitpick. -nt

[blondeatlast]

14. Right you are. If you wanna beat me at trivial Pursiuit, ask me a geography question. nt

[spoony]

17. What about this makes supporting US labour unimportant or mock-worthy?

In a thinking liberal, this sort of action necessitates MORE support of US labour.

[Romulox]

24. Can't wait for this poster's coherent, well-considered response.

He's known for same, after all! :silly:

[Ezlivin]

13. ¡Viva la Revolución!

Workers arise!

Oh, wait a second...

[NNN0LHI]

16. One of my Fords was built in St. Louis, Missouri and the other was built in Chicago, Illinois

There is a little sticker in the bottom right hand corner of the windshield on both of them that indicates they were made in the US by UAW union workers.

Its really not all that difficult to purchase union if someone is inclined to do so.

Don

[spoony]

18. +1

People seek excuses too often.

[liberation]

21. Any European made auto is also union made ;-)

In fact, most factories over there have a minimum of two or three different unions representing the workers.

But I assume you mean USA Union made ;-P

[NNN0LHI]

23. Well where is the guy who builds that European car going to spend his wages?

He won't be spending any of it in the economy around here keeping other Americans working like an American auto worker does thats for sure. And when he pays into his version of Medicare and SS it won't be our programs he is paying into every week.

This is common sense stuff.

Don

[Juneboarder]

26. If that is common sense, then why are these

American car makers having non-"American" people making them for $26 a day? Those wages go to a worker in another country...

American automakers have officially sold out to the corporatocracy within today's society. They do not care about the union workers nor do they care about our country.

I say the US imposes an astronomically high import tax on US goods made overseas, then they might possibly consider bringing our jobs back. The united corporations of america is effed up in my opinion...

[NNN0LHI]

31. Honda was using prison labor and you are telling me about American automakers selling out?

:rofl:

[Juneboarder]

33. I'm sorry, but I missed my reference to Honda... nt

[Statistical]

32. "American automakers have officially sold out to the corporatocracy"

This statement shows a broader misunderstanding of corporations.

They have loyalty ONLY to shareholders.
They use Mexican labor because Mexican labor maximized shareholder value. They are do EXACTLY what they are obligated to by fiduciary responsibility. Period.
If Mexican labor generates more long term value for shareholders (big IF) then a corporation and indirectly it's executives is obligated to use it to maximize shareholder value.


They haven't sold out anymore than a Wolf eating a chicken has sold out on the "wolf & chickens are friends meme". The meme is simply wrong to begin with.

One should NEVER expect a corporation to do ANYTHING except maximize shareholder value. That is why regulation is needed because often the needs of the environment, community, citizens, workers are at odds with shareholder value.

[Juneboarder]

35. I would like to disagree

I have a clear understanding of corporations and the fact that they have nothing but profit in mind. This is what my statement refers to. I would in no way try to justy that corporations are shareholders and the fact they use mexican labor for $24/day is okay because they are doing what they are supposed to.

[Statistical]

36. While Mexican labor may not be "ok" for you, or the country, or the enviroment ...

it obviously is the "ok" thing that maximizes shareholder value. If the executives thought they could produce more profits without Mexican labor they simply wouldn't use it. If they use American labor it isn't out of some moral sense of right or wrong. It simply is that American labor maximizes shareholder value.

Where we often fail is thinking that corporations will "do the right thing". Well there is no universal "right thing". Right thing for who? Well if the data shows Mexican labor maximizes shareholder profits well then that is the "right thing" for the corporation.

You need to understand a problem before you can tackle it. Expecting corporations to do things contrary to THEIR ONLY PURPOSE is silly.
If you don't want Mexican labor to be used.... fine regulate it, tax it, tariff it. Create an financial incentive such that Mexican labor is no longer the method to maximize shareholder profits.

A farmer doesn't try to reason with a Wolf about the morality of the Wolf eating his chickens. No the farmer understands that eating the chicken IS what is in the best interest of the wolf however the farmer can use fences, dogs, shotguns to ensure to remove the incentives for the Wold to eat his chicken.


Sometimes on DU (and in politics) we seem to be that farmer trying to reason with the Wolf rather than accepting IT IS A WOLF and will ALWAYS BE A WOLF. Getting mad that is does Wolf like things is not very productive. :)

[Juneboarder]

39. I understand the problem

but I'm thinking maybe you don't. The problem is the corporations are running our country at this point. If you disagree, then please provide solid proof of your argument against. I never said that corporations have a heart, and I know I did not say that because that would be going against everything I say and believe. We, our country, needs to stop these corporations from a complete takeover. If not, then please reference the oil spill in the Gulf and tell me how these people in that area have not been screwed over.

I do not see how you can justify hiring $24/day labor. Screw Ford and GM for sending their labor to another country; they are the current epitome of capitalism gone wrong (or should I say good, since they are lining their pockets, thus richer and happier). This is why I state that the country should instill a tax on these corporations. How about 500,000% tax to import US goods back into our country? That would get our jobs back...

[Statistical]

40. I think we agre and you are just not realizing it.

Yes we should NEVER expect a company to do the right thing for the country. the worker, the community, or the environment.

We should always EXPECT them to fuck over the commnity, its own workers, the country, AND the environment.
If they aren't then likely we aren't looking hard enough.

It is in the nature of the corporation TO ONLY ever do what is in the best interest of shareholders.

As such the government needs to stop corporations via regulations. Sadly you are right corporations have far too much corrupting influence and that has broken the role of govt oversight.

We, our country, needs to stop these corporations from a complete takeover.
Yup. I am just saying corporations will always do the "right thing" ..... for their shareholders. We should never expect or hope for anything different.

[Juneboarder]

41. Yes, we definitely agree there!

Sorry if I was missing your point earlier. I was like, there's no way someone can justify a corporation's wrong doings. It's amazing what goes on in the country and how oblivious 99.9% of the population is. It's taken 51 days to get MSM all over BP's ass and that is a total, blatant, complete eff up. Sorry, didn't mean to change the subject but BP is the one thing that's on my mind now...

[Romulox]

25. GM is run by the Obama administration. Just FYI. nt

[Statistical]

30. Just goes to show there is no such thing as "American company".

Companies are owned by shareholders. Companies have an allegiance to shareholders only. If they could do it without cost or damage to the brand Ford & GM would fire every single American Union worker tomorrow to shift production to Mexico and boost profits. Anyone thinking otherwise has a rather quaint cira 1940 view of the world.

Obviously they can't because of PR, brand, quality issues so they do it little by little. Still the idea that somehow Ford is a good company and Honda is a bad company is archaic.

Ford supports Ford shareholders and is wholly beholden to those shareholders.

Increasingly those shareholders are foreign entities (not just Ford but all "American" companies).

[howaboutme]

38. A USA government but not for USA people

You would think that our own Congress and government would write trade agreements and policy for the economic benefit of "We the People" of the USA. Wrong!

There is no longer such a concept as patriotism and USA first by our illustrious Congress and others. They are mostly all bought off opportunists by the international capitalist elite and by lobbies working for other countries. They are bi-partisan in their screwing of the USA people first.

[killbotfactory]

34. Capital can move anywhere around the globe and across most borders

Labor can't.

[Dover]

37. Never fear. Pretty soon highly educated Americans will be competing for the same wage.

Corporations love it. Cheap labor will bring the corporations home again.
It's just not the 'home' we knew. Why not raise everyone's boat rather than lowering them?