Ford to move production of Focus from Mexico... to China.
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  Ford to move production of Focus from Mexico... to China.
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Author Topic: Ford to move production of Focus from Mexico... to China.  (Read 448 times)
The Self
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« on: June 21, 2017, 05:58:04 PM »

http://thehill.com/latino/338586-ford-to-move-production-of-focus-from-mexico-to-china

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Maxwell
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« Reply #1 on: June 21, 2017, 06:03:49 PM »

Doesn't he get that more jobs in Mexico means less illegal immigration?
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The Self
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« Reply #2 on: June 21, 2017, 06:08:29 PM »

In fairness, they'll be retooling these factories to produce other Ford cars. And in fairness, that retooling will probably lead to a net decrease of jobs anyway.
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JA
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« Reply #3 on: June 21, 2017, 08:49:27 PM »

Doesn't he get that more jobs in Mexico means less illegal immigration?

There are two problems with this. First, Republicans have zero comprehension of how history and economics impact the relationship between "developed" and "developing" countries, nor do they particularly care. Second, if illegal immigration ends, then who will the right-wing fanatics like Trump scapegoat for votes? It is too socially unacceptable to target African Americans like they do Hispanic/Latinos, so they won't know what to do.
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Person Man
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« Reply #4 on: June 21, 2017, 08:58:30 PM »

Doesn't he get that more jobs in Mexico means less illegal immigration?

There are two problems with this. First, Republicans have zero comprehension of how history and economics impact the relationship between "developed" and "developing" countries, nor do they particularly care. Second, if illegal immigration ends, then who will the right-wing fanatics like Trump scapegoat for votes? It is too socially unacceptable to target African Americans like they do Hispanic/Latinos, so they won't know what to do.

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vanguard96
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« Reply #5 on: June 22, 2017, 10:11:22 PM »
« Edited: June 22, 2017, 10:21:07 PM by vanguard96 »

In fairness, they'll be retooling these factories to produce other Ford cars. And in fairness, that retooling will probably lead to a net decrease of jobs anyway.

US factories which originally lost Focus will make SUV & trucks which are more profitable than smaller cars.

However if it was be made in Mexico the Focus would have a lot more US content for components than if in China. Depending on vehicle anywhere from 20-40% of content would have been US origin.

The Focus joins the Buick Envision as another Big 3 car that will be imported from China. Naturally the car will be underpromoted given that status and Ford's role in the small car field will be eroded.

Ford was already making Focus in China but not Mexico so I think they are banking on low gas prices and a fairly flat market demand overall (roughly 17M seasonally adjusted for next 3-4 years).

If the new US Ranger & Bronco do not do well though Ford could be in a tough spot.

The F-150's aluminum body development took a lot of money and has limited their innovation elsewhere.

At least the industry experts say though not killed the potentially crippling Border Adjustment Tax is on the backburner. In that suppliers have diversified to support all North American makers domestic or imported the impact would be immense. Particularly as the market has tailed off, incentive sales are so high and loan periods so long.
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