Canadian Union Says GM Warns of Production Shift to Mexico Over Strike

"raydan" said
I thought that Trump said that these jobs will be moving back to the USA.

"Thanos" said
Probably like the inside of your head.

"BartSimpson" said
You folks still in love with NAFTA now that it's moving Canadian jobs to Mexico?

"bootlegga" said
You folks still in love with NAFTA now that it's moving Canadian jobs to Mexico?

"rickc" said
I can't get the article to come up. Where is the strike?

"BRAH" said

Mexico has auto manufacturers knocking down their door to build production facilities and that's not going to China anytime soon because the cost of shipping from China can't be justified, for now. It's a scary thought when your vehicle domestic or import could one day be built in China.

Low labour costs and fewer tariffs are the swing factors. A worker in Mexico costs car companies an average of $8 an hour, including wages and benefits. That compares with $58 in the U.S. for General Motors and $38 at Volkswagen's factory in Tennessee, the lowest hourly cost in the U.S., according to the Center for Automotive Research, an industry think-tank in Ann Arbor, Michigan. German auto workers cost about $52 an hour.

Mexico also trumps the U.S. on free trade. It has agreements with 45 countries, meaning low tariffs for exporting globally. That, along with low labour costs, convinced Audi to build an SUV factory in the state of Puebla. The German automaker will save $6,000 per vehicle in tariffs when it ships a Q5 to Europe, compared with building the same vehicle in the U.S., says Sean McAlinden, chief economist at CAR.
Audi also sells the Q5 in the U.S., where tariffs on cars built in Mexico were dropped under the North American Free Trade Agreement.

The cost savings also should allow automakers to add expensive fuel-saving features to meet stricter U.S. government gas mileage requirements without raising car prices. Two-thirds of cars made in Mexico are shipped to the U.S.