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Detroit shifts car output to Mexico
Hat tip, Jalopnik: America's Car Production Is Slowly Moving To Mexico
Detroit shifts car output to Mexico
UAW deals keep trucks, end Tier 2
Nick Bunkley
nbunkley@crain.com
http://www.twitter.com/nickbunkley
Automotive News
November 16, 2015 - 12:01 am ET
General Motors will be the only one of the Detroit 3 making compact or midsize cars in the U.S. by 2019, according to the companies' new UAW agreements.
Ford Motor Co. and Fiat Chrysler Automobiles {FCA} are essentially giving up on trying to build mass-market cars profitably in this country, instead shifting most production of those nameplates to Mexico so they can dedicate U.S. plants to higher-margin pickups and SUVs. The UAW is accepting that trade-off to get rid of the two-tier wage scale that was vital to the business case for U.S.-made sedans and because it expects a net increase in jobs.
The result: In a few years it will be far easier to find a Japanese or Korean car produced domestically than one designed in Detroit that's not imported. Foreign brands are expected to keep their U.S. plans churning out high-volume cars, such as the Toyota Camry and Honda Accord. ... But, increasingly, Ford and FCA see the U.S. as a place to build light trucks.
....
The cars that Ford and FCA are moving out of the U.S. and the Buick Verano, which GM is expected to move to either Mexico or China, account for 45 percent of the domestic-brand car production in the U.S. for the first 10 months of this year, according to Automotive News Data Center estimates.
UAW deals keep trucks, end Tier 2
Nick Bunkley
nbunkley@crain.com
http://www.twitter.com/nickbunkley
Automotive News
November 16, 2015 - 12:01 am ET
General Motors will be the only one of the Detroit 3 making compact or midsize cars in the U.S. by 2019, according to the companies' new UAW agreements.
Ford Motor Co. and Fiat Chrysler Automobiles {FCA} are essentially giving up on trying to build mass-market cars profitably in this country, instead shifting most production of those nameplates to Mexico so they can dedicate U.S. plants to higher-margin pickups and SUVs. The UAW is accepting that trade-off to get rid of the two-tier wage scale that was vital to the business case for U.S.-made sedans and because it expects a net increase in jobs.
The result: In a few years it will be far easier to find a Japanese or Korean car produced domestically than one designed in Detroit that's not imported. Foreign brands are expected to keep their U.S. plans churning out high-volume cars, such as the Toyota Camry and Honda Accord. ... But, increasingly, Ford and FCA see the U.S. as a place to build light trucks.
....
The cars that Ford and FCA are moving out of the U.S. and the Buick Verano, which GM is expected to move to either Mexico or China, account for 45 percent of the domestic-brand car production in the U.S. for the first 10 months of this year, according to Automotive News Data Center estimates.
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
