Auto Car Show Parts

Because Mexico human cost of 10% of the United States, the United States largest automobile manufacturers General Motors, Ford Chrysler automobile and is speeding up the production capacity from the United States and Canada to Mexico.

Recalling the three cheqi Mexico investment

February 2010, Chrysler announced investment 5.5 million for upgrading the Chrysler Mexico Toluca plant production equipment. And in the existing Chrysler Cruiser (PT Cruiser) Dodge and Journey models, Chrysler will also December this year in commissioning of the plant Fiat 500 cars. Estimated annual capacity will increase by 10 million to 13 million units.

2010, Ford restart its located in Mexico the Cuautitlan assembly plants, for production 2011 shall Carnival (Gallery Forum) models. The factory will add 2 000 jobs. But on the contrary, Ford since 2006 has been in the United States to close four factories, and planned before the end of 2011 will close four factories.

November 2007, General Motors announced in Mexico investment 36.7 billion, including in San Luis Potosi new family assembly plants. August 2009, San Luis Potosi General Assembly factory Foundation laying ceremony was held. Since June 2005, the United States in General has 5 factories closed, and there are also 3 factories also close consideration.

Manpower cost huge gap

It is reported that GM Mexico factory workers of the average wage is less than 4 USD/hour. Ford United States factory worker the average wage is $ 55 /hour, car Toyota United States factory worker wages is 50 us $/hour. Therefore, the human cost of the huge gap is evident.

Expert views

Global market demand for small environmental protection and energy saving cars has been rising, but small car is relatively low profit margins. Therefore in the Mexico plant production of small cars, Mexico's cheap labor costs can help improve the profitability of small car cheqi. However, after the transfer of production capacity, Mexico was "workers" is established in the United States and Canada workers "lost".

2000 to 2009, Mexico automobile output accounted for North American auto production by 12%. In the next 10 years, this proportion will increase to 19%. While the share of the United States will fall by 7% to 65%, Canada will remain unchanged at 16%.

― ― Automotive Consulting Inc. CEO DesRosiers Dennis DesRosiers

Once Chrysler and GM paid off United States Government and the Government of Canada, they face political pressure will decrease, thus producing energy from the United States and Canada to Mexico's transfer will be accelerated.

― ― Michigan CSM Worldwide Vice President of global forecast Michael Robinet

Review historical data

In 2005, the United States passenger car and light truck production as-1150 million, by 2008, this figure dropped to 845 million.

In 2005, Mexico automobile output only 161 million units, but in 2008, this figure rises to 208 million.

2009, subject to the financial crisis, the United States automobile production fell 34% year-on-year; Mexico is 150 million units, up 28% decline.

April 2010, the United States automobile yield annualised-705 million units, an increase of 40%; Mexico car production increased 77% year-on-year.