Industry News: Detroit Three's Car Production Will Move to Mexico

[William Maley]

If there is one thing that we can pull from this latest round of contract negotiations between the Detroit three and the UAW is that amount of car production that will be heading to Mexico.

 

According to a report from Automotive News, Ford and Fiat Chrysler Automobile will have moved production of most of their mass-market vehicles from the U.S. to Mexico. General Motors will be the only Detroit automaker who is keeping some sort of production of their compact and midsize cars.

 

Why the shift to Mexico? It comes down to what vehicles make money for the three automakers. Currently, pickups and SUVs carry a much higher profit margin than cars.

 

"You can afford to pay a little more when you're making trucks, but the structural change in the industry has been so huge that I was kind of surprised by that -- trucks here and cars in Mexico," said Dave Cole, chairman emeritus of the Center for Automotive Research.

 

But some point out this change in production could put the Detroit three in a situation they found themselves back in the early 2000's with sales of SUVs dropping due to the increase in gas prices.

 

Models that will be moving to Mexico include the Chrysler 200, Dodge Dart, and Ford Fusion.

 

Source: Automotive News (Subscription Required)

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[David]

Totally understandable, but if I was an executive, I would double down with keeping some capacity in the states as eventually gas prices will rise.

[smk4565]

One day they might build the trucks and SUVs in Mexico too.

[regfootball]

if we can't build cars here, what can we build here any more?

[David]

if we can't build cars here, what can we build here any more?

Clearly not much electronic wise any more. The US has become and engineering country and an incubator for start ups but otherwise we have lost the lower middle class jobs to cheaper labor elsewhere.

 

One reason I pay a bit more for my floor mats. WeatherTech 

 

http://www.weathertech.com/products/?utm_source=BingAds&utm_medium=CPC&utm_campaign=FloorMats-Gen

 

Quality product and made in america, I respect this company for closing down their overseas plants and bringing the production back home.