Big Three Detroit Automakers Accelerate Plans to Build Their Small Cars in Mexico WKRB News
go to original November 17, 2015

How Mexico is Winning the Car Manufacturing War (The National)

The Big Three automakers in Detroit are speeding up their plans to make more small cars to be used in the North America market south of the border in Mexico. The three are looking to lower labor costs and at the same time use their higher priced workers in the U.S. to build the much more profitable luxury cars, SUVs and trucks.

New versions of a number of popular compact cars for the U.S. will be manufactured in Mexico, said people familiar with plans of each company.

They include the new Chevy Cruze hatchback from General Motors, a new car for the Ford Focus compact as well as replacing the Fiat Chrysler Jeep Compass compact SUV.

These decisions have prompted three automotive research companies, who often are used by automakers and suppliers for forecasting in the industry, to project a huge increase in output in Mexico of small cars by the companies.

One firm estimates that Ford, GM and Fiat Chrysler will together produce as much as 45% of their smaller cars for their respective North America markets in Mexico before 2020, which would be up from the 2014 figure of 18%.

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