Thursday, September 25, 2014

Auto manufacturers move to Mexico


Mexico has become a superpower in cars

Automotive News estimates that just-opened and newly announced plants in Mexico from 2014 will add more than 1.5 million units of vehicle capacity there through 2019, much of it aimed at U.S. consumers. That will give Mexico the factory muscle to turn out 4.5 million cars and trucks -- roughly a 50 percent increase over the 2,934,049 units built in Mexico in 2013.

The investment in Mexico likely will turn up the competitive heat on automakers who are not moving small vehicles into Mexico -- notably General Motors, which produces its subcompact Chevrolet Sonic in Orion Township, Mich., and its compact Chevrolet Cruze in Lordstown, Ohio.

There are many factors that makes Mexico so attractive to automotive manufacturers. There are the EPA laws, OSHA laws, EEOC laws, legal liability laws and municipal zoning laws that make the US less attractive. Mexico also has much lower electricity and natural gas costs that the manufacturing plants consume in enormous quantities. 

Wake up America and get your foot off the necks of manufacturers and you will see U.S. manufacturing flourish.

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