Thursday, September 15, 2016

Ford moving production to Mexico. Not Canada.

With Detroit falling apart the last 40 years, it is no surprise Ford moved a lot of their production.

With the USA going full-SJW at the regulatory level, it is no surprise that Ford moved their production off-shore. In many states there is literally no way a big company can build a new factory on a green field. Not economically, and not legally. Can't be done.

    The news sparked a fresh round of criticism of Ford from Republican Presidential candidate Donald Trump, who was campaigning in Flint on Wednesday.

    "We shouldn't allow it to happen. They'll make their cars, they'll employ thousands of people, not from this country, and they'll sell their car across the border," Trump said during his visit. "When we send our jobs out of Michigan, we're also sending our tax base."

I love how "tax cut" guy Donald Trump is so worried about his tax base. I love how Hillary Clinton probably doesn't even know about it, and couldn't care less if she did know.

But that's not what I want to say here. We know why Ford is moving out of the USA, they can't make a buck. The autoworker's union has managed to make a five-year-old, half billion dollar Focus plant in Michigan a loser. Ford is planing on spending over a billion and a half dollars on a new factory for the Ford Focus.

In Mexico.

That would be the same Mexico that has drug gangs controlling whole swaths of territory. The Mexico that Mexicans are fleeing to become illegals with no rights in the USA. The Mexico where they're hanging rows of people off of road bridges, shooting them, knifing them, chopping off heads, burning them alive, and so forth. The Mexico where the cops are the Army, and the Army is more crooked than the damn drug lords.

That Mexico.

But that's not what I want to say either.

Here's my question: Why isn't Ford building its new Focus plant in Canada?

Nobody is getting shot/knifed/burned/chopped here. There's no drug overlords running Ontario or Quebec. Canadians are not fleeing the nation to hide in the USA and cut other people's grass. Why not here?

That's a question I know I'm never going to see any fracking news-norbert ask Prime Minister P'tit Ptat. That is a question that nobody is going to corner frigging Ontario Premiere Kathleen Wynne at a news conference and demand an answer for. Nobody is going to grab Quebec Premiere Philippe Couillard by his lapels and scream that in his ridiculous face, like they should.

Because it's a stupid question. We all know why Ford is not building a new plant here in Canada.

They would have to be fricking crazy to build here. The Canadian government is already bleeding them white, it would be suicidal for them to build here.

But it is a question we'd better start asking ourselves, or we'll all be stony broke really soon.

The Deplorable Phantom

Update: Hi, Kathy! :) Welcome, 5 feet of Fury readers!


Palladini said...

This simple, the law should be, if you start a company in the USA or Canada, and you decide to move the plant to a country with cheaper labour and little law, then we are going to tax you 200,000 per job loss and put a hefty import charge on your vehicles, something like 300% of the price. See how soon they leave Mexico now.

The Phantom said...

Ah, punitive taxation and high import tarrifs. Yes, that would certainly keep Ford from building in Mexico.

And your Ford Focus would cost $100,000.00, with a ten year waiting list. See Trabant, East Germany.

The problem is that when you punish people for being in business, they stop doing it. Nobody -has- to make cars, right? They do it for money. No money, why bother?

That assumes a level playing field. What I'm afraid of is when they punish -some- people and not others. That is corruption, and that seems to be the way things are going very quickly.

Anonymous said...

The cost of operation is to high. Between unions and energy costs. Simple.

The Phantom said...

Indeed. Very simple.

The costs are too high, despite an excellent electric service, despite Canada being an energy exporter, despite abundant raw materials right here in Ontario, despite the Nanticoke US Steel (formerly Stelco) plant that produces the best automotive grade steel available, despite masses of under-employed skilled workers dying for a decent job... Despite all those huge advantages, the costs are too high.

Why is that?

Joseph Ficker said...

And this is just another example of what the Liberals are doing to Canada. They are succeeding at completely destroying this country economically. They no longer support our long established businesses. They no longer give incentives to attract new businesses. They tax them to the hill and then wonder why they don't continue to expand their business here. And then they spend billions of $ trying to create work assisted agencies. Way to go Wynne and Trudeau. You are two peas in a pod.

AsURSoMI said...

Watch you don't slip off that soap box.
Ford is moving, has moved (in the 70s) and will continue to move. Duh!
Mexico is CHEAP.
Mexico is CORRUPT.
Mexico can be BOUGHT.
Ford executives will be UNTOUCHED.

Plants have been moving since the 70s.
Plants moved from the US to Canada in the 50s cause our labour was cheaper and less organized until the United Auto Workers (US based) moved to town.

Canada or any other 1st World nation cannot complete with Mexican or Chinese labour markets controlled by their governments and corrupted private sectors.
Too many of you quote from the old Capitalism Tomb that no longer applies. This ain't your father's economy.
Ford (and the rest) missed the boat on fuel efficient cars and let the Japanese manufacturers grab huge market share - that's Capitalism for ya; bet none of those execs left office without parachutes.
We need new answers and I can see there ain't none here.

The Phantom said...

AsURSoMI said: "Plants moved from the US to Canada in the 50s cause our labour was cheaper and less organized until the United Auto Workers (US based) moved to town."

Nope. Ford's been in Windsor since 1904.

"We need new answers and I can see there ain't none here."

Let me guess. Nationalize the car business, right? Trabant North! Yeah, baby!