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Auto Production in Mexico

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Alisa Priddle and Brent Snavely on USA Today outlined these details: “The auto industry is looking south for new factories–much further south. Canada is struggling when it comes to retention of many auto jobs, while the US is also divided with the majority of the new auto investments & jobs heading to Mexico. The (3) countries are a united trading block under NAFTA, but are also fierce rivals where auto executives decide where to invest in the latest equipment and jobs. Of the vehicles built in N. America last year, Mexico produced about 20%, or twice the rate from 2004. WardsAuto, which tracks suc data, expects the % to increase to 25% by 2020. Dennis DesRosiers, president of DesRosiers Automotive says Mexico is winning the battle with over ½ the capacity and investment dollars going there.” The complete article is available at this link.

John Irwin recently posted an article titled ‘UAW chief blasts Detroit 3 for shifting output to Mexico’ with the following information: “Dennis Williams, the UAW President criticized auto manufacturers for moving vehicle production to Mexico. He denounced the notion that the unions negotiated such moves last year in return for the end of tiered wages for workers & investments in U.S. plants.

Williams, spoke with reporters at a media roundtable saying that automakers are taking the easy way by shifting car production to lower-wage countries. A Mexico-based company called Detroit 3 investments says this move should raise eyebrows since it is not a country that’s purchasing a lot of vehicles. The Detroit 3 have come under fire from the UAW, as well as GOP presidential nominee Donald Trump, for shifting vehicle production to Mexico while opting to produce more profitable models in the U.S. Ford is the latest auto manufacturer to invest in Mexico, saying last month that it will spend $1.6B for a new vehicle assembly plant near Mexico City.” The full story is available here.

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