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General Motors will invest $5 billion through 2018 into its Mexican facilities to help double production capacity.
Reuters reports $1.4 billion of the $5 billion has spent, according to GM Mexico president Ernesto Hernandez, with the rest coming over the remaining three years. The investment will add 5,600 jobs, and help modernize the subsidiary’s facilities in Coahuila, San Luis Potosi, Mexico State and Guanajuato.
The investment raises the total figure invested into the nation’s booming auto industry in the first two years of Pena Nieto’s presidency, now at $19 billion. Mexico is currently the seventh largest producer in the world, up from eighth place in 2013.
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“Mexico is currently the seventh largest producer in the world, up from eighth place in 2013.”
Soon to overtake the US. The lack of EPA regulations, low labor and cost of utilities, and logistics in relation to the US border make Mexico a gold mine for manufacturing. If a US based company is going to manufacture components for a US car out of country, the same regulations should be forced upon them. They claim to be environmentally friendly and in the same breath invest billions in out of country manufacturing where its acceptable to pillage the land. They all need to be held accountable.
Couldn’t agree more.
However, with the recent election results and the EPA squarely in the sights of the ‘right’ for elimination…
…we’ll be quite competitive with Mexico in regards to wages and environmental regulations in another generation.
Part of the plan, I’ve long suspected.
Depends on what kind of manufacturing. A lot of the clothes making that moved to Mexico form the US years ago has since move to Asia..or Africa…because Mexico is too expensive now.
As to your demand of imposing environmental/labor regulations I ask: Why do you hate freedom?
“out of country manufacturing where its acceptable to pillage the land”
It’s just Mexico. What’s to pillage? Sending US jobs overseas incenses me. Messing up some parched dirt in Mexico doesn’t.
If either of you think pumping toxic waste into the air and major water ways has no implications on a global level, your sadly mistaken. Not to mention the lack of said regulations does indeed play a large factor in the loss of american jobs. If they had to build their plants identical to the ones they have here in the states and adhere to the same emissions and provide the same protection and training to their employees, they would have a lot less reason to pick up and move in the first place.
If Mexico had major waterways it would support human life.
Two come to mind, the Pacific Ocean and the Gulf of Mexico.
Drink up.
They have the southern half of the Rio Grande, *and* what’s left of the Mighty Colorado River –
What else do they want… egg in their Tequila?
A cursory scan of available articles makes it appear that large-scale desalination plants in Mexico are a coming thing.
To pipe the water norte.
That process looks like it is going to speed up, as the U.S. is becoming to expensive to manufacturer in and Mexico has now a very reasonable infrastructure and a reputation for good quality
Yes, and the US is very interested in piping it up to the southern portions of the country that rely on the Colorado river for its water supply. Kinda makes ya wonder why we would ever wish to import water of all things to the US doesn’t it? Well, much of it comes back to the EPA regulations. Desalination plants take up prime coastal real estate. (strike one) They suck in fish eggs and larvae (strike two) They require massive amounts of electricity and dump millions of gallons of brine back into the ocean that is harmful to marine life if not disposed of properly. (Strike 3). The solution, build them a short distance across the border where utilities and labor is cheap, coastal real estate is plentiful, and nobody gives a rats ass if you dump thousands of gallons of toxic brine right back into the ocean a day.
Upset the balance of the ocean, and you upset the balance of life, plain and simple.
Win!
“If a US based company is going to manufacture components for a US car out of country, the same regulations should be forced upon them.”
Resulting in US-based companies simply moving abroad, à la Burger King, Pfizer, Medtronic, etc.
Rah-rah-rah: Welcome to the land of the free…. Where things should be forced upon “someone.” Don’t much matter who, as long as it’s not me. Go gommiment, go! Force someone yeah! yeah!
Mexico actually has environmental regulations of their own. They’ve seen what happened to China (now serving as a warning to other nations), and made sure it doesn’t happen to them. The Ram truck facility in Saltillo was required to upgrade its facilities to near US levels for its paint shop, water treatment, and air pollution scrubbers.
They just don’t have our EPA’s penchant for massive reporting requirements and hefty fines for negligible “violations” of their highly detailed and overly restrictive regulations. The Mexicans set pollution standards, inspect processes to achieve those standards, certify those that work, and periodically inspect to see that they’re working.
The bottom line is Mexican regulations are more interested in outcomes than processes, while our EPA mandates and micromanages processes companies must use. Mexican costs of compliance are much lower, but achieve similar results.
Your facts are contrary to Tea Party doctrine and will be ignored.
Your facts are true Lorenzo, but will be dismissed by many in the secular religion that is the Left. GM is an environmentally responsible manufacturer in Mexico. Mexicans love GM and other big manufacturers who provide great jobs. Poor countries can’t afford to protect their environment very well. GM’s presence brings greater prosperity. Mexico’s government knows this and works with them, not against them.
This is good. We were swindled. But Mexico can bailout GM next time. If they want.
DM, I agree! This is a good thing, for many reasons, among them NAFTA, keeping more Mexicans at home instead of over here, and getting away from all the unionizing sh!t conducted by the UAW and other unions.
We’re not just talking GM that’s investing in Mexico. Foreigners and transplants also see the merits of producing in Mexico and utilizing NAFTA to import the goods to the US, duty free.
But it does come at a cost for our friend Canada.
It’s working! Of the half-million people caught illegally entering the US in the last six months, less than one third were Mexicans. The vast majority were from other Latin countries farther south.
You raise a good point about the effect on Canada. What if millions of Canadians started coming here illegally, looking for jobs? They speak English, they watch our TV shows, so they know our culture – how would be ever pick them out? Unless they show an unusual fondness for hockey, or are too polite in certain places like NYC, Chicago, and behind the wheel in Boston, how will we identify them?
Canadians are easy to spot, they are the nice polite Americans.
Just not to each other if from a different province
My Canadian brother-in-law talks funny. He pronounces “about” as aboot; “aluminum” as “aluminium”; “lab’ratory”as “laboo-ratory”, and so on.
But as long as he treats my sister right, I don’t care if he talks funny, looks funny or smells funny.
Then again my Jewish brother-in-law from NYC who now lives in West Palm Beach with my other sister, has quirks all his own and often talks Yiddish to me as if I should understand it.
It takes all sorts to make America go ’round.
Alumininium and Centre, same as in Australia
GM owes nothing to the US and Canada, except their fu*king existence! Sorta kidding, but I’ve mixed feelings too. What’s good for Mexico is good for us, I’ll agree. And Mexicans do buy a lot of GMs, in Mexico.
I can easily forgive the low margin/volume crappy cars that satisfy CAFE, etc. But to build the Silverado/Sierra in Mexico is another story. That’s the highest insult! If they can’t build those in the US, they don’t need to be in business.
Eventually a lot of US Vehicles will be built in Mexico,, including Pickups, the currency fluctuations make Mexico a very tempting place to build. Audi has just opened a new factory there
It’s not just vehicle production moving to Mexico. It’s lots of stuff.
My former son-in-law was a corporate attorney for a company in the LA area. The company moved production to Mexico and their corporate offices to Southwest Texas.
Laid off a bunch of California people, including my son.
He’s working out of his mom’s house now handling pro-bono illegal immigrant amnesty cases, while still collecting welfare from the State of California.
As long as we’re doing that, the Corvette should be the next Hecho en Mexico GM.
Mexico looks like becoming the North American equivalent of Thailand
Mexico doesn’t have a stable enough government to ensure that their population will benefit from the additional wealth. Are they not going through a long and protracted drug/gang war? Did they not go bankrupt back in ’95? Isn’t their government far more corrupt than that of CAN/US?
And just wait till ASWA (Allah in the Spaghetti Western Americas) rears up its ugly head.
The Mexican government isn’t even remotely as corrupt as the one over there, for the simple reason that they’ere neither well armed enough, nor have a large and wealthy enough population to prey upon.
If they were as corrupt as here, the cartels wouldn’t’ have to bother fighting them. Instead, they would just do what ours do: Pay the goons to declare them “systemically important”, then rob the population on their behalf.
Oh perfect ! — and remind me again of how much money Mexico contributed during he 2009 crisis ? ( I believe it rhymes with “hero” )
Last one to leave Oshawa, please turn out the lights.
Mixed feelings here.
This is not why U.S. taxpayers bailed out GM.
On the other hand, a recent LA Times article described the near-slave conditions for Mexican farm workers (in Mexico). Bringing higher quality jobs to that country is a good thing. Adam Smith’s invisible hand: greed drives employers to bring jobs to where they are needed the most.
Mexico graduates 300K engineers per year. Car companies would be foolish not to move to Mexico. US people are now stupid and parasitic brats thanks to public schools and television programming. Pretty much everyone under 30 in the USA is a parasitic bratty moron and a net liability to any productive enterprise…Basically human tapeworms.
Do you have children? Don’t know bout you, but I hold my children accountable for their actions and am constantly teaching them to be responsibile and respectful. Don’t blame anybody but the parents, they (kids) only know what they see and hear, and the home is a very influential place good or bad.
As opposed to citizens of the European Union, or the South American and Central American countries, or India, or Russia, or Canada, or Australia, who definitely am not human tapeworms. They am way better than human tapeworms.
¿Debo entender que lo niegas?
[Citation needed]. And careful, don’t hurt yourself with all that vitriol you’re spewing.
“US people are now stupid and parasitic brats thanks to public schools and television programming. ”
You mean to say that Jonathan Gruber is right?
No wonder they sucked up Obamacare like it was a freebie.
“US people are now stupid and parasitic brats thanks to public schools and television programming. ”
You mean to say that Jonathan Gruber is right?
No wonder they sucked up O’b*m*care like it was a freebie.
@JD321
Ah yes, Mexico, the Athens of the Americas. Perhaps you could station yourself along the US southern border and kindly inform any individuals you might encounter trying to enter our country illegally of the grave mistake they are making by leaving paradise. It would be greatly appreciated.
I’ll just insert the obligatory “Strawman” here – the way this is going, it’ll eventually fit.
That’s what she said?
Well that’s it! If it wasn’t for other countries we wouldn’t have food to eat, something to cook it on/in, clothes to wear, building materials, other necessities, and now they are hollowing out the auto industry. Well I guess it won’t matter because without good manufacturing jobs no one can afford to buy a new car.
Potemkin, read John R. MacArthur’s book, “Barriers to Democracy in America” to gain an understanding of why this is so, and why the Democrats are just as bad as the Republicans in keeping Wall Street so intertwined in the running of the US.