Is North America’s auto industry moving south?

Is North America’s auto industry moving south?

It looks like the North American auto industry is looking to Mexico for low-cost factories and assembly according to this report – Associated Press report in the Santa Fe New Mexican.

Eight car manufacturers have opened or announced there will be taking up car manufacture in Mexico over the last two years. Ford plan a Mexican built engine and transmission, while Toyota plan a new assembly plant in Guanajuato.

It seems that the simple equation of cheaper costs and labour, make manufacturer in Mexico more viable in the future, but what does this mean for American car workers?

The state of Illinois house bill recently stated that local government vehicles should be assembled in the US or Canada and not Mexico.
A bill like this will go some way to give American car workers future work, industry on the whole dictates that you build your products at the most competitive prices and that seems to be in Mexico.

Me thinks a balance must be struck between cost effectiveness and the welfare of local workers, but we obviously have to wait to see how this will turn out.

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