Wednesday, January 4, 2017

#Trump Winning Populous Support With Ford

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The global economy, however, is based on competitive advantage. While these announcements are certain to win populous support, they won't last unless Mexico's competitive advantage in auto, and more importantly auto parts production is reduced. Currently Mexico can produce auto parts at 10% lower cost than both Canadian and the United States. Reducing the scope and size of government, a move the Trump Administration has yet to do, will help but won't necessarily guarantee a return of US dominance. Mexico is world class auto parts producer for the global market. This capability, a skill acquired over time through training and investment, will not be easily duplicated.

Headline: Ford invests $700M in Mich., cancels plan for Mexico plant

Ford is investing $700 million to expand its Flat Rock assembly plant and hire 700 new hourly workers to build self-driving and electric vehicles along with the Mustang and Lincoln Continental already produced at the Downriver site.

The automaker also said it is canceling plans for a new $1.6-billion plant in San Luis Potosi, Mexico, but confirmed that the next generation of its Focus compact will be produced at its Hermosillo, Mexico, factory.


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