In 1920, Henry Ford built the first Ford Motor Assembly Plant in Michigan; fast-forward almost a hundred years later to 2016, and Ford has not only expanded outside of the United States, but has made plans to build a second plant in Mexico. The $1.6 billion dollar plant, which will be located in in San Luis Potosi will be built by 2018. Ford announced earlier in April that the second Mexico plant would create roughly 2,800 jobs. Ford also said they would also invest over $3.6 billion dollars to create two new engine and transmission plants to the existing plant and that will create nearly 7,000 additional jobs in Mexico. (Diaz) Ford said that the new plant and the additions to the existing plant will allow the Mexico plants focus on building
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Ford hopes that the choice to build another plant in Mexico will follow the success of the first plant they already have built and allow them to remain of head of their competitors who are either located in Mexico, or choosing to expand there as well. The plants in Mexico will provide additional trade benefits to the company as well as new and easier methods of transpiration for new trade and selling options in other countries that would otherwise be difficult to reach under current trade laws within the United States. The increase wage gap between the United States and Mexico is without a doubt a very big factor in Ford’s decision to outsource. The cheaper labor will allow them to increase profits and hire more …show more content…
There is a balance that must be kept between customers and making a profit, especially in todays day in age where American’s are losing jobs to foreign workers both in the United States and abroad. This uncertainty adds pressure on companies to make wise choices in their decisions to outsource. Ford is no different in this balancing act. At the end of the day the Ford sole purpose is to build and sell cars in order to make money, the United States gave Ford their start, but from a business standpoint it is wise to move productions of some vehicles to other countries that can increase profits, which in turn can provide money that can be invested back into the United States plants to help create jobs for America’s
Ford hopes that the choice to build another plant in Mexico will follow the success of the first plant they already have built and allow them to remain of head of their competitors who are either located in Mexico, or choosing to expand there as well. The plants in Mexico will provide additional trade benefits to the company as well as new and easier methods of transpiration for new trade and selling options in other countries that would otherwise be difficult to reach under current trade laws within the United States. The increase wage gap between the United States and Mexico is without a doubt a very big factor in Ford’s decision to outsource. The cheaper labor will allow them to increase profits and hire more …show more content…
There is a balance that must be kept between customers and making a profit, especially in todays day in age where American’s are losing jobs to foreign workers both in the United States and abroad. This uncertainty adds pressure on companies to make wise choices in their decisions to outsource. Ford is no different in this balancing act. At the end of the day the Ford sole purpose is to build and sell cars in order to make money, the United States gave Ford their start, but from a business standpoint it is wise to move productions of some vehicles to other countries that can increase profits, which in turn can provide money that can be invested back into the United States plants to help create jobs for America’s