New Worries for US Workers as Mexican Auto Manufacturing Booms Nick Miroff - The Washington Post
go to original July 3, 2013

RAMOS ARIZPE, Mexico — In the division of labor that has long governed North American auto manufacturing, the Big Three and other companies typically built their top moneymakers in the United States, using their Mexican plants to produce smaller, cheaper cars with lower profit margins.

But that division is breaking down. As Mexico cranks out record numbers of vehicles and attracts billions in new investment, Mexican auto workers are increasingly able to match the skill and productivity of their U.S. counterparts — and at a fraction of the wages.

General Motors is making its iconic Silverado pickup trucks in central Mexico's Guanajuato state. Cadillac SUVs that retail for $40,000 roll off the assembly line here in the sprawling industrial parks west of Monterrey. Audi has announced it will put its new $1.3 billion North American plant in the state of Puebla, the first time luxury vehicles will be built in Mexico.

The boom here is bringing worries to U.S. auto workers and unions about the long-term prospects of car manufacturing jobs in the United States, particularly after the $80 billion government bailout of GM and Chrysler. On Mexican assembly lines, wages are often six or seven times lower than in the United States, and new motor cities are rising across central and northern Mexico, fueled by a 50 percent increase in U.S. auto sales since 2009.

Read the rest at The Washington Post

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