June 15, 2006

Ford Goes South (Literally and possibly figuratively)

Several sources report that Ford Motors Company is preparing to invest $9.2 billion in creation of a plant in Mexico. While the factory would create over 150,000 jobs, Ford is eliminating roughly 30,000 jobs here in the States.

Some are speculating that this may prompt some Mexicans to sneak back across the border for these "high-paying" jobs. I, personally, find this highly unlikely; however, I wouldn't put it totally out of question, considering it's still technically taking an American job. They would be making "American" cars, after all...

I first read about this from wired.com. While not notably the most reliable source for automotive news, they are on top of a variety of breaking stories so I gave it a look. Turns out that there is a great deal of news on the subject (link may expire--direct to Google News search on "Ford Motors + Mexico + job + assembly").

The Detroit Free Press reports that the plant that is now being build in Mexico was earlier promised to be built in North America.

Ford and its suppliers would invest $9.2 billion in Mexico over the next six years. In return, Ford would get at least $500 million in government grants, the documents show.
...
With sales falling -- especially of high-profit pickups and SUVs -- and rising costs, for health care and energy, Ford Motor has been hustling to reshape the company to compete with Asian rivals, as well as other Detroit automakers, which have bigger investments in Mexico.
...
"I don't see the American innovation in it at all," Taylor (a bargaining representative at Ford's Dearborn Truck Plant) said during the convention. "It's absolutely sad that they would build our products in Mexico. We have a good workforce here. We put out good products. We need our work here in the United States." via Detroit Free Press

So Ford would benefit from the move on multiple fronts, it seems. Because Americans are more interested in foreign cars, presently, we're supposed to think it's okay for one of the only American car companies left to outsource to Mexico? What, with an immigration problem on our hands? Somehow, I doubt this will blow over easily.

The Detroit Free Press article continues saying, "[T]he automaker has been boasting in advertisements about how it is 'Driving American Innovation' -- a message that seems incongruous with a major investment in another country."

How true, how true.

Posted by KarissaKilgore at June 15, 2006 11:10 PM