Ford to Build Small Car Factory in Mexico, Adding 2,800 Jobs

So I did a little research and found out that the amount of time it takes to assemble a car is roughly 20 hours, give or take.

Now there is difference of $52/hour between what a U.S. worker makes and what a Mexican worker makes.

This means that Ford is saving $1040 per car by having it built in Mexico.

If you were the President or a member of Congress, what measures would you support to induce Ford to build the plant in the U.S.?

I can think of some carrots:

- No corporate tax on profits derived from those cars if they're built in the U.S.
- I could even see going 50-50 on building the factory.
- No personal income tax on the first $70k/year the assembly worker earns combined with an agreement with the UAW to allow a corresponding reduction in wages. This would have no impact on the worker's take-home wages, but it would save Ford money.

And a stick ...

- A $1040 tariff on each car if it is built in Mexico as it is shipped across the border.

Thoughts?

 

I believe in the free market, and Ford should not be given a tax exemption, a bit of corporate welfare. That is flat out frigging socialism.

Build their (*)(*)(*)(*)ty cars in Mexico. If folks don't like it, don't buy one.

 

Well we have the highest corporate tax rate in the world. How smart is that?

But yeah, I won't be buying one of those cars. If I want a small car, I'll buy a Hyundai, assembled in Alabama.

 

see THIS is what I wish americans would go back to doing... we used to have massive radio, print, and some tv ads (back in my day was not tv of today) that would tell you to "be american and buy american" because when you do the wages and profits stay here... and we have gotten away from this message of "be local and buy local"... this could impact our economy way more than people think with the massive number of goods we import, even right down to nails for building a home...

this one single act by people, could change american companies forever... but we don't do it, because there was a period where american companies produced a lot of crummy crap because they knew people preferred american made goods... and that ruined this campaign, since people wanted foreign made goods because those foreign made goods HAD to be better than american made goods in order to get us to switch... just look at the automotive industry, we bought foreign because they lasted longer...

 

Cough, cough, Harley Davidson, cough, cough.

 

First of all you are loosing tax dollars by eliminating taxes on corporate profits,,,,

You are giving the corporation corporate welfare

You lose more taxes by eliminating virtually all taxes on the worker. You give the workers the impression that they are getting a wage reduction. i know therein the corresponding tax cut but have you ever tried to sell such an idea to a factory worker.

or you start a tariff war.....


What you are going to be accused of is creating a war on workers..

My guess is that Ford would take the tariff over Plano Convoluto

 

Mexicans who want unions and want US Corporations to stop polluting their country and exploiting slave labor should build a wall and make American republicans pay for it.

 

Really , you think the liberal democrats would reduce taxes ? All you hear is corporation pay no taxes and corporate welfare blah , blah , blah . Why do you think 1000 businesses left for Ireland where the tax rate is 12.5 and NOT 35% .

 

Sneeze, fart, belch, Fords, General Motors, Chryslers, AMCs built between 1975 and at least 1985, fart, belch, blow nose.

 

Any american truck between 1988 and 2006 not powered by Cummins.

Seriously the US made, for years, gas guzzling (*)(*)(*)(*) vehicles. As of 2 years ago, Ford still made (*)(*)(*)(*) vehicles when it comes to reliability.

http://www.autonews.com/article/201...s-reliability-rankings-ford-again-near-bottom

Why give companies tax breaks when they can seem to make something worthwhile? Why buy American when it is garbage?

 

I never owned a vehicle with a Cummins, but the last two American company made cars I will ever buy were GM products, both pickup trucks. (*)(*)(*)(*)ty fuel mileage, electronics that failed, and just generally poorly made. One was a 1993 Chevy 1500 and one was a 2003 GMC Sierra.

 

Ha! If there was a Comment of the Day Award, that would be it.

 

My father had I think a 1988 Ram 4x4 with the Cummins. The thing got great mileage ont eh freeway and literally never broke down with over 200,000 miles. Never had an issue with the engine. Did break one rear end, the body was not made particularly well, the brakes were horrifically lacking, and the seats were interesting.

But it never broke.

 

The murky world of taxes - it isn't corporate tax rates that drive American businesses to places like Mexico, it is cost and "ease" of doing business. Spouting out marginal tax rates is a meaningless exercise since nobody but nobody pays them. For example, 35% is used as the corporate marginal tax rate for the US - it isn't, it's more like 39.1%. Mexico is 30% and Canada is closer to 28%. One has to look at the federal rate combined with state & provincial rates. The real number is the effective tax rate - this is much, much lower and the US isn't as bad off as one might think.

Corporate tax rates are just smoke and mirrors, the real juice is labor. Cost of an auto worker is $8.00 /hour in Mexico, about $58.00 /hour in the US. Game over....and we haven't even mentioned Mexico's advantages with trade pacts, tariffs etc. (the US is catching up though). Hell, with what is really going on corporate tax rates aren't even a consideration.

Biggest losers in this, autoworkers in the US and Canada.

 

Does the government exist to support the people, or do the people exist to support the government?

Besides, we are losing 2800 jobs that would otherwise be producing income taxes for the government and that many people being self-sufficient

I am helping them compete, just like other countries do, in some cases, rather ruthlessly. And, I extend this to manufacturers only.

Nobody has tried it. That's why I bring it up.

The tariffs would cut into Ford's profits they were making on the backs of $8/hour workers.

I don't think so. Why do you think that?

If I were the POTUS, and they just paid the tariff, the public would hear about it in a lot of my speeches. Truth.

 

Tariff sounds appropriate in this case.

 

No, actually, I don't think liberals would do that.

What I am suggesting is that there be no corporate taxes on the profit derived from manufacturing. Actually, physically, creating stuff, manufacturing.

Even the Repubs want to preserve some corporate taxes. I'm fine with that, except in the manufacturing sector. That whole sector should be tax free. Why in God's name do we, the People, want to penalize the very entities we need the most? Why do we tax them so highly as they run to other countries while our middle class shrinks???

What is wrong with us???

I don't even think it's a radical idea. It's a common sense idea.

 

lol...i'm waiting for a stupid right-winger comment so I can make the wall 10 feet higher.

 

So then shouldn't we be setting our federal minimum wage lower instead of higher?

 

Granny says, "Dat's right - just like Ross Perot said `bout NAFTA...

... 'dat sucking sound ya gonna hear...

... is the sound of jobs goin' to Mexico.

 

What we need is for all unions to demand employees of all manufacturing businesses to raise their wages to $60.00/hour including benefits. More manufacturers will move out of the U.S. There's nothing like cutting ones own throat.(sarc.) Only the union organizers will walk away rich. It's becoming so bad that if we do have another war, America will not have any manufacturing to support it. We don't make Steel, Aluminum, and our assembly plants for the most part no longer exist.

 

And yet you don't mention the fact that Ford's CEO's salaries have gone up hundreds of percentage points more than the workers that actually make the product.

Alan Mulally, for instance, received a 30 million dollar signing bonus (yes, just a bonus) when he came to Ford. He then immediately laid off 30 million dollars in salaried workers.

Mark Fields, when he first hired on...as part of his compensation package...was flying back and forth to Miami because he refused to move to Dearborn MI where Ford Hdqtrs were. So every friday night, two pilots would fly him back to Miami on a corporate jet...then those pilots would stay there over the weekend in a hotel waiting to take him back every monday morning. And that was just a part of his overall ridiculous package. That went on for some time until the Detroit Free Press exposed the story and then Ford bought him a home instead...a very, very expensive home.

I find it amazing that right wingers blame workers...actually working Americans and say NOTHING about the CEOs who's salaries have increased far, far,far more with far less impact.

Typical of right-wingers waging war on the working class...pathetic.

 

I'm wondering if all the kerfuffle is about Ford building cars in Mexico or Ford building cars abroad? If it's the latter, most (if not all) car manufacturers do it.

 

My guess is that it is simply an anti-foreign bias.

[video=youtube;uXMnAPGY1uE]https://www.youtube.com/watch?v=uXMnAPGY1uE[/video]

 

Why not have dollar for dollar trade agreements , then we wont have a 540 BILLION dollar trade deficit with China and 50 billion with Mexico . Then lower corporate tax to 10% and watch the jobs come back .