Ford: New Fiesta to be built in Mexico

That’s been my argument for years. My father in law once owned a Mexican built Chevrolet truck and I a Ohio built accord. He used to call me “Rice and fish boy” and chide my “patriotism. I argued that the jobs in Ohio employ Americans. Nuff said.

BMW is, by far, the largest employer here in upstate SC. I would by no means consider a locally built Z4 to be an Import.

And likewise, the Aveo is a Daewoo product built in South Korea. Just because it’s got the Chevy badge slapped on it…who cares! They can glue that thing to anything with 4 wheels (and they have).

Hyundai, Honda, Toyota, and BMW build a huge number of cars in the U.S. It’s about time they got credit for the jobs created and the contribution to the U.S. economy.

The unseen side of all of this, however, is how many parts are imported on all these vehicles. Even though Ford, GM, and Chrysler still build most of their U.S. market vehicles in the U.S., a big chunk of the parts are imported from other companies and countries. Same goes for foreign companies that build their cars here. Only the final assembly occurs in the U.S. How much of each sale dollar goes out of the country on these “domestic” vehicles?

made in American by nonunion workers nuff said buy american by union charger owner

I have had a problem with the “buy American” argument for quite some time. Honda, Toyota, Hyundai, Subaru, even BMW (didn’t know that) have assembly plants here in the good ole US of A, while a lot of the so called “American” cars and trucks are assembled elsewhere and use just as many foreign parts as the “foreign” cars. Is any car truly American anymore? You see “German inspired engineering” used a sales tactic on domestics. How many innovations have been led by the Japanese and followed by us?

If a company makes a superior, dependable product and is assembled in America, by Americans, creating jobs, why is that so bad? I personally think that it makes for a more “American” car than one assembled in Mexico. I proudly drive my Honda a feel that it is more American than my friends F-150.

I have heard this Buy American stuff my whole life. Why does this only seem to be the case with cars? Does anyone ever choose a Hershey bar over a Nestle Crunch because Nestle’s a European company? I’m a proud American and I like to see the Big 3 do well. But we shouldn’t buy their products just because they’re American companies. Make them earn it by building superior products at competitive prices. I drive a car that was built in Sweden but the money goes back to GM, so what does that make me? I work hard for my money and will give it to the best value car with the nicest features. I would prefer either a car built in USA by a foreign company or from the Big 3 over a foreign built foreign car if that makes sense. That way the USA is at least benefiting somehow.
PS – I live in Ohio and know a few workers in the Honda plants that have nothing nice to say about the way they treat their employees. I’ve never been big on unions, but am starting to realize just how bad it can be. Seriously, after the stories I’ve heard I don’t know if I’d ever buy a Honda.

I once owned a Mexican Built Jetta, Not One Problem. I think this is about where Unions have forced Management to go. None of the Japanese, Korean, Or German Companies who build cars in this country are UAW Members. Don’t you think there is a corolation to the quality of cars we get at the price we get them for, when Non UAW Members build them? There was a time in American History When Unions played a vital part. Now I think through greed, they have become quite destructive, and have litterally drove many companies out of business, or out of the country.

Yeah, Mike large corporations aren’t greedy. haaaa!

My 2000 Ford Focus hatchback was built at the Hermosillo, Sonora plant in Mexico and it was put together very well. I remember reading a report saying the Hermosillo plant had the highest quality output in all North America. I don’t know about this other plant, but hopefully it’s as good. If Ford built the new Fiesta in the USA, they would have to sell it for more money. They claim that they lose money on every small car they sell, so it’s only logical they build it in Mexico and then import it.

Mfg’s outsource everything they can yet we are supposed to remain loyal shoppers. We bought an 04 Chevy Aveo (thinking it was US made at the time) however it provides a decent ride with lots of room and up to 40MPH. Also bought an 03 PT Cruiser new, I believe it is made in Mexico. The finish and fit are basically flawless with no rattles and only minor repairs after 70k. I’m sold. I’m sure the Ford will do as well.

Mexico is part of north America so i see nothing wrong with it being built there. remember America is a Continent not a country

Anyone who has taken an economics class knows that every nation’s economy evolves over time. A country’s economy and the jobs in that country start as subsistence agriculture and gradually move into manufacturing. Eventually, the economy moves beyond manufacturing and into services and jobs that utilize brains rather than muscles. When an economy does move beyond the manufacturing phase, that country then contracts out its manufacturing to places (other countries) where it can be done cheaper.

This is a basic economic truth which seems to make sense to most people. But problems develop when we start to look at the individuals in that evolving economy to see how they cope with an economy’s transition beyond manufacturing.

When a young man or woman begins a career, they have to think about whether the career they have chosen, auto manufacturing for example, may be on the decline in their country. Twenty years ago, anyone who objectively looked at U.S. manufacturing, world trade and the differences between U.S. vs. foreign wages should have been able to see that auto assembly in the USA would not be a growth area. That young man or woman would then have chosen to go to college and prepare themselves for a career beyond manufacturing.

Our society will always have individuals who make wrong beginning career choices. Economic reality will eventually catch up with them, and their jobs disappear. Those individuals must then make the difficult transition to a new career later in their work life.

But the question is, do the rest of us have a responsibility to continue to support those people, industries and jobs which have not kept pace with the changes in the nation’s economy? Do we have a responsibility to “Buy American”, or is our primary responsibility to buy those goods and services which represent the best value for our families, no matter where those goods or services originated?

You decide.

Steve, I’ve taken a number of economics classes and am still a skeptic of the theory of economic evolution. While it is obvious that economies change, the transitions our economy has gone through and is continuing to go through are not necessarily inevitable, purely organic, and part of the natural aging process of any economy. For example two major reasons are common to the “outsourcing” of jobs. One is cost of labor. The other is government regulation. The cost of labor is to some extent based on the relative scarcity of workers in a given industry vs. demand for those workers. This is natural if the government isn’t involved. But governmental regulation can be capricious and far reaching, having little to do with normal economic patterns. While these regulations often achieve some level of success in addressing the problem for which they were designed, they can over time become too numerous, too burdensome, and too costly. End result: company x looks elsewhere to find a more helpful environment. The result is unintended and unnatural. Also from a purely bystander’s standpoint this idea I’ve called economic evolution arises partly in knee-jerk fashion; we see this happening so we invent the theory that it is natural and normal to all economies. I’m doubtful because there is such a shortage of other examples that exist outside of our current timeframe (thus most examples are subject- in many ways- to the same set of economic/political/technological realities as we are. ie: not entirely valid). Otherwise I agree that individuals are responsible for how they choose to respond to their times. So I guess I fall into the non- “most” people category when it comes to accepting this theory in whole form. I agree in part to it and my answer is too simplistic but hey, it’s a blog not an essay

Regarding Aaron’s question: I’d normally say the Honda is more American (USAan) than the Ford based on the presupposition that the money entering our economy via workers at the Honda plant is in excess of the money entering it from Ford profits. But without knowing either figure, this is just a guess.

Steve, you’ve laid out the fundamentals of “Economic Evolution” quite capably. You’re right that as each generation comes to the point of deciding what career to choose, manufacturing is becoming an obsolete choice. The choice that is being offerd widly is high-tech/cyber fields. Unfortunately those jobs are all being sent to India. Customer service as well, goes to India, Bangladesh and the Orient. It seems as soon as we develop a new technology in any field we “farm” it out for cheaper continued development elsewhere. Silicon Valley techno fat cats are selling those Porsches and either moving abroad or driving driving Jettas.

REGARDING THE ORIGINAL QUESTION…
“So how do you feel about the Fiesta being built in Mexico?”

Building the Fiesta in Mexico makes economic sense… I believe the Mexican minimum wage is still at $4.85 per DAY (http://www.iht.com/articles/ap/2007/12/22/business/LA-FIN-Mexico-Minimum-Wage.php), compared with US Federal minimum wage of $5.85 per HOUR (http://en.wikipedia.org/wiki/List_of_U.S.A._minimum_wages), which means that Mexican labor is about 1/50th of that in the USA. Logically, the math really works out well from a business perspective. I just hope that they have a good set of quality standards and controls, as well as a decent design using quality parts. (of course, when it comes to an entry-level econobox, you can only expect so much from a quality standpoint). The car’s track record will eventually speak for itself, so time will tell. I would be intersted to see the consumer reviews both from new and [eventually] after a few years.

Mike in Minn and Hawaiian Don, I hope that Aaron doesn’t think we have hijacked his original question about Mexican Fords vs. U.S. Hondas. But, I do believe that maybe we are not too far off topic by talking about some of the more general, underlying questions about where things are manufactured.

Mike, you are right that governments do get involved in markets and trade, and they can distort the “free-market”, “free-trade” concept. Sometimes governments will try to protect a domestic industry because the government may believe that a particular industry is vital to the national security. That’s why the U.S. Air Force buys planes almost exclusively from U.S. manufacturers.

Other times government will try to protect an industry for reasons that are less clear and less high-minded. For example, it used to be very common for powerful members of Congress to routinely sponsor tariffs that would protect industries in their districts from imports.

But most people now recognize that tariffs, even if they do temporarily protect an industry, have some very undesirable side-effects: they raise your cost of living by making the things you buy more expensive. And, tariffs cause other countries to retaliate with tariffs of their own. That makes American goods non-competitive in foreign markets, and that costs American jobs.

So, maybe the proper role for government is to adopt a free-market, free-trade policy, but to also to be prepared to implement punitive tariffs on governments that don’t reciprocate with free-trade policies of their own.

The problem with all of this high-falutin’ free-market stuff however, goes back to Don’s point. An individual in a true free-market economy is constantly changing careers. That may sound exciting, but try it when you are 50 years old and have two kids in college.

So, does it matter whether a Mexican Ford is more “American” than an Ohio Honda? I can argue either side of that one.

The Fiesta is more American now than ever before. I believe it was originally built in Spain. For an entry level car like this, Ford needs to save every penny it can, so the cheap labour is appropriate. When you start building the majority of your cars abroad you’re not a “domestic” car maker, but rather a “multi-national” car builder. Your headquarters’ location is nothing but an exaggerated marketing tool. People who wrap themselves in the flag when buying a car are displaying their naivete and lack of understanding of how the auto industry works. But if they feel good about their “patriotic” gesture, who are we to break their bubble. Just remember, I read that Henry Ford II used to proudly wear the US flag upside down on the buttocks of his jeans at parties…now there’s a patriot for you!

Ford “FIESTA”, Hecho in Mexico destiny, nuf said…

Hey Jerry,

Do Canadians consider themselves “American”? How about Mexicans? America may be a place but the term “American” clearly is a term reserved for U.S. Citizens or of the U.S.A.

The Fiesta is not American built and I’m not one of those nuts who will only buy “American”. Although I do relate to Red Forman more than I’d like to admit and will buy American if it’s a better product for the money.

C

just that !!!! made in mexico !!!!
how does that help america ???
they can keep it !!

Big business and it’s love of outsourcing. I wonder how Ford expects out-of-work auto workers to purchase its product? Shouldn’t people be as important as the bottom line? Those who lose their jobs build the product that line the pockets of the executives. It seems that greed is the new business motto.

LOL @ Jerry

North American Union ALL THE WAY!!!

Hahahahah

So if the car ends up being REALLY boring…do we now get to re-name it the Ford SIESTA?

I likely would have bought a Ford built in the US, and given up my Honda built here. Not if it is built in Mexico.

The same selfish union people who strike if the company even thinks of making a profit without a 6 percent wage increase will line their (Aribic) gas guzzling trucks outside of wal-mart and load them up with $400 Chinese BBQ grills and $1000 korean TV’s and loads of cheap plastic imported crap they do not need. So next time you cast a stone with the Union brand burned into it, think of where you spend the rest of your dollars.

My wife’s michigan UAW assembled 03 Mazda 6 has been a great trouble free car. So has my mexican assembled 06 Buick Rendezvous. Would have I preferred that my Buick been assembled in the USA? Absolutely. Would I have preferred that the Mazda been assembled in Japan? No, because it doesn’t matter to quality.

One thing we can’t forget is that all of the profits go back to the country that owns the cars. Yes, the country that manufactures the cars do benefit from the additional jobs and revenue from transporting etc. All you have to do to see this in action is look at what Benz did to Chrysler. They sucked it dry and then sold it off. Every profit went directly to Germany and now Chrysler may go under. Benz left Chrysler in bad shape for the future with no new platforms to deal with anything other than gas guzzlers.

would have likely purchased it if it was made in us. now, no way…

I am disappointed in Ford. I want to buy cars that support U.S. economy.I won’t buy these cars especially, with that large a price tag simply because they went out of the U.S.The markup on the Fiesta’s must be pretty high, with a $15,000 and up price tag, being that Ford is getting such cheep labor.This is not the way to help us get out of this recession. I feel they need do what most corporate companies need to do.Cut CEO,CFO…etc. salaries and then deal with more realistic union wages.I was going to invest what little money I have in Ford,hover now I will have to think about it some more.

I have been reading your comments and wondering where you see this country in 20 years? Since we were asleep the last 20 years.
The United States doesn’t produce…
Televisions
Radios
Kitchen Appliances
Computers
Clocks
Washer/Dryers
Hardware (nuts / bolts)
Along with everything listed I’m sure you could add many more.
Jobs that’s what we have lost.
Along with Jobs is our “Independence”.
Our States are bankrupt along with our U.S. Goverment. We have lost most of our good paying jobs and along with our tax base.
We as a people pay taxes on what we make and buy. We earn less and pay the same price for products we no longer produce.
Just call me stupid!

I AM NOT IN FAVOR OF A MEXICO BUILT VEHICLE.
I FEEL WE SHOULD KEEP IT RIGHT HERE, WE NEED THE JOBS, I WORK IN THE AUTO INDUSTRY, AND I SEE IT EVERDAY.
IF WE KEEP BUYING THE OUT OF COUNTRY BUILT CARS, WE ARE JUST GIVING UP ANOTHER JOB.
WE SHOULD JUST CALL FORDS MEXICAN MOTORS. MOST OF THEIR CARS ARE MADE THERE, BUT THE PRICE ISN’T COMMING DOWN . THANK YOU

While it is disappointing that the Fiesta is built in Mexico, I would take it ANY day over an Accord, Camry, etc. built in the U.S.
The wiley Japanese have been, for years, touting that their cars are built right here. Sadly,plenty of uneducated buyers, well…buy into it, and purchase a Japanese car “guilt free”.
The hard truth is, a vast majority of money from Japanese car sales go right back to Japan. The amount of money paid to the American workers who build these cars is negilible in the long run.
WAKE UP AMERICA AND SUPPORT THE BIG THREE!

At least the labor revenue for some Honda, Toyota, BMW, etc. models stays in the US as opposed to the Focus… and where do you think the name for the Ford “Fiesta” came from??? They must be laughing their asses off South of the border.

Am now unsure about the purchase of a Fiesta. The factory I worked in, (Electrolux) closed in March and moved to mexico. The United States better look where we came from and where we are now in relation to the international market.

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