Good news? Bad news? The start of a trend? Ford to open new Louisville KY plant and bring jobs home.

[Stinky The Clown]

Here's a news link: http://www.wave3.com/story/16059119/ford-to-be-made-in-louisville-unveiled-in-los-angeles

Ford has announced that it has completely renovated their Louisville, KY, assembly plant. They will now build the new version of the Ford Escape there. That's not a bad thing.

They also say they'll bring jobs back from Asia and Mexico as they build in the renovated plant some components formerly made off shore. On the face of it, that, too, is a good thing.

But let's stop for a second. Is the Ford Motor Company a patriot? Are they altruistic?

I don't think so. I think they're a big corporation who have as their only purpose making as much money for their owners as is possible, and by every means possible.

If that new alternator could be, on the car and out the door, cheaper if sourced in Mexico or Thailand and shipped here, that's what they'd be doing.

Has shipping cost gone up so much that avoiding it makes the difference?

I don't think so.

So what's the deal?

I think the deal is that our wages have fallen to the level that the wage delta between us and Mexico (or wherever they were making whatever components they'll now make in Louisville), plus the unit shipping costs are such that it is now cheaper to make the stuff here.

Imagine that. The USA is now a low cost supplier nation.

I don't actually know if this is true, but it sure strikes me as highly likely. If, however, we see more manufacturers do this, then you can bet on it.






And why isn't this happening in Detroit (Dearborn, to be more accurate)?

[Nuclear Unicorn]

1. Corporations that operate for altruistic reasons are called "charities."

The rest are called "businesses."

I don't ask that every corporation be a charity; merely a responsible, non-harmful business.

[Stinky The Clown]

5. I guess my intent was to suggest that all of this may be the plan . . . . to drive down US wages.

That would make them a non non-harmful business.

[madrchsod]

2. caterpillar just invested 600 million in 2 plants in high tax state illinois.

caterpillar bought a chinese heavy mining equipment manufacturer. cat is investing in mining equipment because of the demand for new mines around the world.

my daughter builds air filters for caterpillar equipment.


as for ford, i`d say the cost of doing business and the ability to hire upper management is to much of a risk in mexico.

[msongs]

3. odd how GM ran itself into the ground and Ford still makes a profit independently nt

[kestrel91316]

4. They must have got a HUGE tax break to do this. When the tax benefit runs out

I guarantee you they will close the plant and export the jobs.