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William Maley

Ford News: Ford Finally Confirms That Small Car Production Is Heading To Mexico

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Ford has finally confirmed that it will be moving small car production in the U.S. to Mexico in the next two to three years. This information isn't new as we knew about it a year ago thanks to a new contract with the UAW. We learned that in 2018, the Ranger would be taking up residence at the Michigan Assembly plant, home currently home to the Focus and C-Max.

Why is Ford moving small car production to Mexico? It comes down to costs. With low gas prices, consumers are buying up crossovers and trucks at a rapid rate. This means small cars are sitting on dealer lots, costing automakers money.

“Every global manufacturer has to determine how it can best create revenue and limit expenses. Small vehicles are the most price-sensitive, so any cost-savings that can be gained offer competitive advantages. Thus moving production to a lower-labor-cost country makes particular economic sense for small cars,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book.

It doesn't hurt that labor costs in Mexico are significantly less than those in the U.S. The Detroit News reports that workers earn the equivalent of $8 to $10 an hour, compared to the $29 an hour top-tier workers in the U.S earn.

“I don’t think it’s all doom and gloom. It’s a reflection of the shrinking market share for compact cars,” said Dave Sullivan, manager of product analysis for research firm AutoPacific.

But you have to wonder if Ford could have handled this better. Especially when Presidental candidate Donald Trump ripped into Ford for this decision, vowing to put a 35 percent tariff on Ford vehicles if elected. 

Source: The Detroit News


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3 hours ago, surreal1272 said:

Not surprising since everyone else has been doing it but it is one less thing for fanboys to crow about. 

No surprise on the vote there. Care to to elaborate or even discuss the subject @FordCosworth or was this just another hit and run because of who posted it?

25 minutes ago, smk4565 said:

Starts with Focus, then it spreads to Escape, then to Fusion, etc.

Did you actually read the article?

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We need to stop getting in a tizzy about this kind of stuff.  No one was mad when Volkswagen built a plant in TN.... and are now doubling its size so they can build a big SUV there.  No one got mad that Volvo moved into North Carolina or Mercedes to Alabama or Honda all over the place. 

Ford will be bringing the Ranger to the US, they'll probably sell more of them than they do of the Focus.... so it's a wash. 

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9 minutes ago, William Maley said:

Umm, @smk4565, the Fusion is already built in Mexico.

Haha, good point.  I forgot about that.  They'll build it all in Mexico soon, and then run some "buy American" ads.   Luckily BMW, VW, Subaru, Toyota and Mercedes are investing in American factories and jobs.

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Oh wow.  Ford is moving small car production South of the Border.  Seems simple as to why: costs and a (far more) profitable Ranger to take their place at the factory.  Nothing to see here.  Just remember smk4564, from Europe's point of view, the USA is the low-cost leader. 

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10 hours ago, smk4565 said:

Haha, good point.  I forgot about that.  They'll build it all in Mexico soon, and then run some "buy American" ads.   Luckily BMW, VW, Subaru, Toyota and Mercedes are investing in American factories and jobs.

You forgot Honda.  Actually, VW screwed the pooch with the dieselgate thing and the Chattanooga plant is well below capacity, American Honda seems to be in a quality free fall, especially the Acura line, and Mercedes has too many issues for me to seriously consider as a serious automotive alternative.

 

Of the above, Subaru is the only one I would take seriously.

10 hours ago, Drew Dowdell said:

We need to stop getting in a tizzy about this kind of stuff.  No one was mad when Volkswagen built a plant in TN.... and are now doubling its size so they can build a big SUV there.  No one got mad that Volvo moved into North Carolina or Mercedes to Alabama or Honda all over the place. 

Ford will be bringing the Ranger to the US, they'll probably sell more of them than they do of the Focus.... so it's a wash. 

Ford does seem like they have made an effort to be ethical with product and corporate matters lately.  Despite Consumer reports best efforts to convince me otherwise, i am really convinced Ford is on the right track in more ways than one.

10 hours ago, William Maley said:

Umm, @smk4565, the Fusion is already built in Mexico.

...and there has been no loss of quality.  My next door neighbors have two fusions and both of them have been utterly flawless...in fact they have one over a family of import humpers to the Ford lineup.  Happily, a beautiful F150 Crew cab 4x4 in Blue just joined their fleet....NICE truck....very impressed with it actually.

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15 hours ago, surreal1272 said:

No surprise on the vote there. Care to to elaborate or even discuss the subject @FordCosworth or was this just another hit and run because of who posted it?

Did you actually read the article?

I down voted because of your snide remark.

Happy now?

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4 minutes ago, FordCosworth said:

I down voted because of your snide remark.

Happy now?

Now do you want sit here and tell us that there weren't Ford fans that were touting Fords American built cars as an advantage over FCA and GM? What I said was 100% true so let's hear a counter. I figure the only reason to do what you did here is because maybe you were one those folks. If not, then you are again, voting against the person and not the post.

 

And for the record, I'm with Drew on this. It's not that big of a deal. It's a global economy and that's not about to change anytime soon.

Edited by surreal1272

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1 minute ago, surreal1272 said:

Now do you want sit here and tell us that there weren't Ford fans that were touting Fords American built cars as an advantage over FCA and GM? What I said was 100% true so let's hear a counter.

Ford Fans are not the topic.

Edited by FordCosworth
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4 minutes ago, FordCosworth said:

Ford Fans are not the topic.

Doesn't change the facts. This a Ford article and my mentioning of fans past reactions to this type of thing is completely relevant whether you like it or not. Besides, MT is not the topic of this entire site but you had no problem bringing it up last week in the Random Thoughts thread while to slander me. See how that works now?

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14 hours ago, smk4565 said:

Haha, good point.  I forgot about that.  They'll build it all in Mexico soon, and then run some "buy American" ads.   Luckily BMW, VW, Subaru, Toyota and Mercedes are investing in American factories and jobs.

The Giant Slayer will still be built in Germany

:)

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14 hours ago, smk4565 said:

Haha, good point.  I forgot about that.  They'll build it all in Mexico soon, and then run some "buy American" ads.   Luckily BMW, VW, Subaru, Toyota and Mercedes are investing in American factories and jobs.

You have missed the point ten fold. 

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50 minutes ago, surreal1272 said:

Doesn't change the facts. This a Ford article and my mentioning of fans past reactions to this type of thing is completely relevant whether you like it or not. Besides, MT is not the topic of this entire site but you had no problem bringing it up last week in the Random Thoughts thread while to slander me. See how that works now?

I agree M/T isn't the topic here. So why bring it up? You know, with you're " fans past reactions " bit...

That was at Motor Trend too.

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14 hours ago, smk4565 said:

 

 

@FordCosworth--It was brought up to make a point about your double standard, a point you clearly did not get, judging by your response (on that token, why did you bring it up in random thoughts in the first place? See where I'm going now?). I said what I needed to say and I stand by it. Moving along to the topic...

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5 minutes ago, FordCosworth said:

A contradiction to make a point?

Genius idea

:unsure:

It's called showing your double standard. Get over yourself and grow up. Next time you'll think twice before talking smack about someone just because you think it's the thing to do here. 

 

Good grief. 

 

Now about Fords move to Mexico. 

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Guest HoosierDad

I don't care if they replace a Focus plant with a Bronco and Ranger plant.  I heard that is the plan.

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On 9/16/2016 at 10:23 PM, Guest HoosierDad said:

I don't care if they replace a Focus plant with a Bronco and Ranger plant.  I heard that is the plan.

 

Ranger, Yes.

 

The Bronco, maybe not so much....

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Would love to see Ranger and Bronco return.  If Ford builds a Bronco, can a Blazer be far behind?

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