GM and Ford Transition to Mexico where workers earn $26 per day

Facetious

Moderated
GM, Ford Accelerate Shift to Mexico Workers Making $26 a Day
By Thomas Black
- Jun 9, 2010


Lower labor costs in Mexico may help U.S. auto companies build smaller cars profitably. Photographer: Susana Gonzalez/Bloomberg

June 9 (Bloomberg) -- Mexico’s share of North American auto production may rise at a quicker pace as General Motors Co., Ford Motor Co. and Chrysler Group LLC seek out workers making less than 10 percent of what their U.S. counterparts earn.

The lower labor costs may help the U.S. companies build smaller cars profitably amid demand for fuel-efficient vehicles in the wake of last year’s recession. Mexico’s gains will come at the expense of workers in the U.S. and Canada, said Dennis DesRosiers, president of DesRosiers Automotive Consulting Inc.

full story

Here we go again, both the American taxpayer as well as the UAW get the shaft again!
 
Buy American, guys. Oh, wait. There's no such thing anymore.
 

maildude

Postal Paranoiac
And yet Honda has had success opening up factories here in the U.S.
 
I'm sure all the free marketers out there will say this is good for us and them. After all they will point out how things are cheaper for people like that, and how they will be able to just as easily afford the car that they make like people in countries where they pay a living wa...oh wait.
 

Legzman

what the fuck you lookin at?
and the taking away of jobs from americans continues. But moving the jobs to mexico is just plain insulting.
 

24788

☼LEGIT☼
It's going to happen when you live in a country like the USA. It's just a given part of being a business they want to find profits and they'll go to cheaper countries to get it to happen.
 

feller469

Moving to a trailer in Fife, AL.
how much longer til there aren't enough Americans with jobs that pay decent money who can afford to buy the products? then what are the companies gonna do?
 
You have to love unions...forcing jobs overseas with the best of them. Their new logo should be " out of a job yet?... join a union and watch it go away." Just wondering...Do those new mexican cars come with a trunk full of immigrants?
 
Okay, so imagine this, you want to open a factory, it's going to be very expensive for you personally and it's going to be very risky, You Might lose all your money and end up broke, where would you open it? Somewhere where you'll have to pay each worker at least $15 dollars an hour, provide health insurance, 401K, medical, vision and life insurance, vacation, paid leave, deal with the unions' ever increasing demands and a shitload of government red tape? Or would you go somewhere where you pay each worker $26 a day and where you can more cheaply buy off the unions and the government bureaucrats? If you chose the second option, welcome to Mexico! Not only is the labor cheaper but also the corruption, I should know, got stopped for speeding in Mexico, and got the cops off me for only $30 bucks! Can you do that here in the U.S.?
 
Threads like this coming from the OP and some of the posts just make me shake my head as to not really knowing where people are coming from.The OP always is always telling me how I just hate captialism and my responses are capitalism needs to be regulated so that workers and the rest of the general popualtions interests are also taken into account.

He are other so called conservative leaning members here seem to want it both ways on these kind of issues.One week they are bashing the bad ole corporations for doing things such as GM is doing here and taking up for the average guy and unions,while some in the same thread are blaming unions for the move GM and others make to mexico.

Lets get it straight,the UAW has already made big concessions,new hires get only $13 an hour,1/2 what the older employees get.Yes things like health care cost GM a lot,but thats because we don't have a single payer system which conservatives are against and spend a fortune on health care unlike Japan,germany and everybody else.

Thats why conservatism is going nowhere in the USA no matter how mad people may be.It offers nothing to workers and the majority.The only reason they get any support is brainwashing from the mass media.

I just wonder when people bash the UAW and others benefits vs cheap non union labor in the US ,mexico wherever do they really understand that they can't have it both ways.Eithier we want the unions to die and go away and for everyone to be paid less,given less benefits like health care (which we as a society will probably have to pay for in some way anyway) or to try to fight for workers here in the US and the rest of the world so we can't be played off each other as corporations.You gotta pick one conservatives!!!
 
I think free market folks might be a bit pissed that the only reason GM is still around to shift its labor force is because it was bailed out by the American tax payer. And before anybody jumps in to remind us that GM "paid back" its loan, be sure not to leave out the fact that it did so by drawing down on a line of credit that it had from TARP.

The free market crowd is usually not the biggest fan of Federal bailouts, so there's a legitimate gripe, I'd say.

Why the fuck Congress and Obama passed/signed an automobile bailout without provisions that prevented this kind of shit is beyond me. Buy American! Buy Honda, Nissan ore Toyota!
 
full story

Here we go again, both the American taxpayer as well as the UAW get the shaft again!

In reality, the American taxpayer has been getting the shaft at the hands of the UAW. The UAW is to blame in large part for the failings of the American automakers, and American taxpayers have had to foot the bailout bill. In 2008, the average hourly wage of all private sector workers was $25.36, while the average hourly wage for Ford workers was $70.51, for GM workers $73.62, and Daimler-Chrysler workers $75.86. The UAW has had such a controlling grip over the American automakers for the last few decades that they don't even realize that they are the ones responsible for driving the industry to bankruptcy. Grossly overpaying workers for making a sub-standard product. An assembley line job, in no way, is worth $70+ an hour. Look at it in real numbers: If you annualize Chrysler’s labor cost of $75.86 an hour per worker over a 35-hour week, for 50-weeks a year, the yearly compensation comes in at almost $133,000 per worker per year. You're telling me that appropriate compensation for someone who welds door panels on to cars, or inserts dash boards on an assembley line is more than $130,000 a year? Of course the production plants are moving to Mexico. They can pay their workers less, and not have to worry about the ultra-rigid production/pollution standards in the US. It makes perfect sense.

Likewise, of course the Asian based companies can flourish in the US, they make a far better, long-lasting product than do their American counterparts, and they pay their workers a far more realistic wage. For U.S. workers at Toyota, the per hour labor cost is around $47.60, around $43 for Honda and around $42 for Nissan, for an average of around $44. So we’re looking at somewhere around a $29 per hour pay gap between the Big Three and the foreign companies that are producing cars in the United States. Its not rocket science here.

And as far as the UAW is concerned, they're just trying to maximize their their profits at the cost of their workers. If they hadn't been so demanding over the years, the failure of these companies and subsequent plant closings would likely not have been necessary. So, the UAW goes to bat for their workers, yet doesn't realize that those greedy efforts to get compensation for their workers that doesn't accurately represent their worth has driven the Auto companies to lay-off a large portion of said workers, and have had to be bailed out by the American taxpayer. Its silly.

And to those who would argue that it is the Union's job to look out for their workers, I would submit to you that the average union worker at Chrysler, received 150 percent more in compensation than U.S. workers generally. Using Bureau of Labor Statistics numbers, the average compensation for manufacturing workers is around $31.50, and the average hourly compensation, including benefits, for the average worker in the U.S. economy is around $28.50. It makes no sense. What does make sense is automakers not taking any more of the UAW dominance over them, and moving to a place where it is far easier to conduct business, getting back to a place where they can provide their product to the American public at a reasonable cost, with the ability to, themselves, turn a profit.

http://www.heritage.org/static/reportimages/95CFB030977DAD5D332E566EC7B976F6.gif
http://www.cnsnews.com/public/content/article.aspx?RsrcID=39499
 
Top