[Newsbot]

Title: Ford moves Ford Focus production to China
Category: Business
Posted By: DrCaleb
Date: 2017-06-20 11:58:21

[Freakinoldguy]

Good luck selling your Ford Focus in the states with a 30% import tariff attached to the price tag.

Maybe the Donald should demand that Ford pay back the billions they still owe the US taxpayers for all those green cars "they didn't produce".

https://www.forbes.com/sites/joannmulle ... a1f3bf5e37

$1:

That was the tradeoff for Ford. They promised to fast-track development of energy-efficient vehicles and consolidate operations by making “greener” cars that the Obama administration wanted to see.

Ford Credit borrowed $15.9 billion dollars as opposed to GMAC, GM’s financing arm which borrowed $13.9 billion. These numbers make the perception that Ford was the only Detroit-based company that didn’t need a federal handout during the economic crash completely false.

http://www.chevyhardcore.com/news/edito ... -they-did/

[Thanos]

Well, terrorism didn't come to a screeching halt the way it was promised to with the "tough guy" in charge. Makes sense that outsourcing of jobs and production wouldn't end either despite all the ham-fisted threats. Potemkin Village POTUS in progress.

[Freakinoldguy]

If Ford's telling the truth it's pretty telling that a country that pays it's auto workers 5 dollars an hour can't compete with a communist country when it comes to manufacturing. Here's what Ford said when they were going to move the plant to Mexico:

$1:

3. Lower wages: Ford's labor costs in Mexico have always been much lower than in the U.S.

U.S. autoworkers made, on average, just under $30 per hour compared with just more than $5 per hour in 2014, according to Kristin Dziczek, director of the labor and industry group at the Center for Automotive Research in Ann Arbor.

In November, the UAW pushed Ford as well as General Motors and Fiat Chrysler Automobiles to agree to essentially eliminate an entry-level wage structure put in place in 2007 that lowered the automaker's U.S. labor costs and led to the addition of thousands of jobs in the U.S.

Over time, all of Ford's entry-level workers in the U.S. will see their wages increase to about $29 per hour. While the UAW has touted the raises as a huge win for U.S. workers, it also widens the labor cost gap with Mexico.

Hinrichs declined to comment directly on the impact of that new contract when he spoke with the Free Press on Tuesday but did acknowledge that "labor costs" were among the factors.

http://www.freep.com/story/money/cars/f ... /82693218/

So why the sudden change by Ford because I can't see a Chinese auto worker being paid less than a Mexican one. So is this just political posturing by Ford because if it is, it just might come back and bite them in the ass especially if they have a tariff slapped on their cars and, when you combine that with the increased shipping costs it's going to make selling the focus in America pretty much a non starter which means they just cut out the worlds larges market. So is it a case of cutting off their nose to spite their face?

Oh wait Chinese auto workers don't make less money than their Mexican counterparts so this move is likely motivated more by politics than greed.

http://topforeignstocks.com/2017/05/10/ ... -in-china/

[DrCaleb]

Freakinoldguy Freakinoldguy:

Oh wait Chinese auto workers don't make less money than their Mexican counterparts so this move is likely motivated more by politics than greed.

No, it's about business.

From the article:

$1:

Joe Hinrichs, an executive vice president at Ford, said the savings from the move to China would allow the firm to invest in parts of the business that are growing, such as SUVs, electric cars and other areas.

"Finding a more cost-effective way to deliver the next Focus program in North America is a better plan, allowing us to redeploy the money we save into areas of growth for the company," he said.

The Focus was Ford's #1 selling brand worldwide for the past few years. China was the #1 market for the Focus, followed by Europe.

https://www.voanews.com/a/ford-focus-wo ... 38163.html
http://carsalesbase.com/european-car-sa ... ord-focus/

With the way NAFTA works, the Focus built in Mexico could have still kept a few Jobs in the US - assembling power trains for example. Now Trump has tweeted himself into losing a few more jobs.

[bootlegga]

Meh, what's the big deal, Trump out-sourced his products to China too...

[ShepherdsDog]

He's a hypocritical piece of carotene infused feces. The only ones buying into his MAGA BS propoganda are simpletons and wannabe neo nazis.

[fifeboy]

ShepherdsDog ShepherdsDog:

The only ones buying into his MAGA BS propoganda are simpletons and wannabe neo nazis.

AND those who were opposed to having a ...aah...aah...person of African heritage in charge.

[raydan]

Vote for me, he said... I'll stop jobs from going to Canada and Mexico, he said.

Good job!