Ford’s Mexico Announcement Sparks Controversy

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Ford is moving to Mexico.

Well, not really, but you’d think so based on the reaction of some politicians after Ford announced plans to expand and build more vehicles in Mexico.

The Detroit automaker said it will invest $1.6 billion in a new Mexican facility and create 2,800 jobs by 2020, with construction expected to begin this summer. The plant will build small cars for export to the United States.

This is probably a good development for American car buyers because it means more affordable vehicles on dealer lots. Not everyone sees it that way, though.

Dennis Williams, president of the United Auto Workers union, said,

Today’s announcement that Ford is investing in Mexico is a disappointment and very troubling. For every investment in Mexico it means jobs that could have and should have been available right here in the USA.

Republican presidential frontrunner Donald Trump took things even further and said,

This transaction is an absolute disgrace. Our dishonest politicians and the special interests that control them are laughing in the face of all American citizens.

Ford President of the Americas, Joe Hinrichs, put things in perspective by saying,

We’re proud to be an American company. We’ve invested $10.2 billion here in the U.S. over the last five years and that commitment won’t change even as we expand around the world.

I think politicians and union-types need to accept that we live in a global economy and the success of U.S. companies often depends on international expansion.

Building cars, or anything for that matter, in the United States is an expensive endeavor. Americans love to save money and, unfortunately, products that are made in the U.S.A. aren’t typically conducive to saving money when compared with similar items made in foreign lands.

Ford’s decision to invest in Mexican production isn’t a bad one. It’s a good business decision that will benefit the local Mexican economy and American car buyers. Why is that a problem?

Do you think Ford should invest in a new production facility in Mexico?

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-tgriffith

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