Toyota pulling Corolla out of Ontario

[TimG]

I would rather see worker safety standards and environmental regulations be a requirement of free trade.

There are considerable divisions within developed countries on what level of regulation is necessary or helpful. I fail to see how any regime for common standards could ever be developed that would be much different from what we have today.

[overthere]

Funny. Keep transferring wealth from the middle to the top and see social need swell, health decline, education decline, crime and violence increase and worse (for a Republican) few people will have the disposable income to buy products.

Yet never have so many been so wealthy in our country, lived longer, been in better health, been better educated or had more disposable income than the last couple of generations.

Funny that.

The government should do something.

[TimG]

A man who earlier built cars had a similar idea. I seem to recall his name was something like...Henry Ford. Of course the rednecks of the world probably dont accept that his theory worked at all.

Except Ford's generosity is a myth. He only raised wages because of competition for workers.

http://www.forbes.com/sites/timworstall/2012/03/04/the-story-of-henry-fords-5-a-day-wages-its-not-what-you-think/

At the time, workers could count on about $2.25 per day, for which they worked nine-hour shifts. It was pretty good money in those days, but the toll was too much for many to bear. Ford’s turnover rate was very high. In 1913, Ford hired more than 52,000 men to keep a workforce of only 14,000. New workers required a costly break-in period, making matters worse for the company.

The principal that Ford espoused was not that workers should be paid a 'living wage' but that his workers should be paid more than what they could get elsewhere. He would have likely opposed any moves to increase the wages for workers elsewhere because that would have undermined his profits by increasing his costs.

You see the Ford way of thinking at Costco which pays its workforce well relative to its peers but what matters is the differential - not the absolute salaries. If other retail players raised their wages Costco would be forced to raise its own wages to maintain its business strategy. This is why people cannot use Costco/Ford as a justification for increasing minimum wages.

Edited April 16, 2015 by TimG

[Wilber]

Europeans are also investing in Mexico. VW Jettas for NA are built in Mexico. The new model Audi Q5 for NA now built in Germany will also be built in Mexico. NAFTA.

Even though companies like GM and VW have large manufacturing facilities in China, no Chinese built cars are presently being sold in North America but Volvo is planning to sell one model later this year. Volvo is now Chinese owned.

[bush_cheney2004]

Funny. Keep transferring wealth from the middle to the top and see social need swell, health decline, education decline, crime and violence increase and worse (for a Republican) few people will have the disposable income to buy products.

Actually, crime rates have been decreasing to 30 year lows along with increases in so called "income inequality". Nice try....

[bush_cheney2004]

Europeans are also investing in Mexico. VW Jettas for NA are built in Mexico. The new model Audi Q5 for NA now built in Germany will also be built in Mexico. NAFTA.

Yes...I own a late model VW automobile manufactured in Mexico. It is well made with typical German engineered excess. The parts for that vehicle come from all over the world. Mexico contributed cheaper labour, lower energy prices, lower taxes, and close proximity to the intended N.A. market. Mexico is also a NAFTA partner and has every right and intention to compete and win more manufacturing.

Canada/Ontario have been widely reported as the most expensive nation in which to manufacture autos. If Ontario cannot compete on costs that impact the very slim margins on such vehicles, it will continue to lose auto plants. The profitability of these large multinational corporations from world-wide operations has nothing to do with why Canadian auto workers should get a break.

Edited April 16, 2015 by bush_cheney2004

[Mighty AC]

There are considerable divisions within developed countries on what level of regulation is necessary or helpful. I fail to see how any regime for common standards could ever be developed that would be much different from what we have today.

Well if you can't see how it could work then it's probably not possible.

There are countless global and international agreements on regulations affecting everything from trade practices, to human rights, to war. The Montreal Accord is an example of an agreement struck to limit CFC use and protect the ozone layer from further damage. Getting these deals done can be difficult but far from impossible. International Environmental Agreements

Currently, multinationals lobby for trade agreements with nations that allow them to produce products as cheaply as possible. That makes sense, corporations must seek to create value for shareholders. However, there is a problem when cost savings come at the expense of environmental integrity and human health. Not only is there a problem for the planet and exploited workers in third world nations, but progress is also held back in the developed world as corporations and their shills argue that environmental destruction and diminishing compensation are necessary for a strong economy. To end this race to the bottom trade agreements should protect the planet and worker safety/health. This can be achieved by applying tariffs to items produced in locales that do not meet the standards of the importing nation. Corporations can then decide to either improve their production practices or pay the tariff.

[bush_cheney2004]

Not only is there a problem for the planet and exploited workers in third world nations, but progress is also held back in the developed world as corporations and their shills argue that environmental destruction and diminishing compensation are necessary for a strong economy. To end this race to the bottom trade agreements should protect the planet and worker safety/health. This can be achieved by applying tariffs to items produced in locales that do not meet the standards of the importing nation. Corporations can then decide to either improve their production practices or pay the tariff.

So paying a tariff is an acceptable trade off for planetary degradation and poorer health ? Interesting....

[overthere]

Yes...I own a late model VW automobile manufactured in Mexico. It is well made with typical German engineered excess.

I've given up on them entirely. I used to enjoy owning and driving VW until they got so massively overpriced, unreliable and horribly expensive to fix the frequent repairs.

In North America, I think they are a company that has really lost track of their market.

[bush_cheney2004]

I've given up on them entirely. I used to enjoy owning and driving VW until they got so massively overpriced, unreliable and horribly expensive to fix the frequent repairs.

In North America, I think they are a company that has really lost track of their market.

Maybe that's the point...North America is just part of a global market, and Volkswagen Group is the second or third largest manufacturer of automotive products in the world. Parts and service are very expensive if you depend on a dealership....I don't...can do my own work with online parts and consumables. That includes a VAG-COM software tool.

My spouse's late model Corolla is less expensive to maintain, but it is not designed or built as well as the VW. Mother-in-law just bought a new Golf...she loves it.

[Topaz]

When GM first move to Mexico, a friend bought a car made there and they has several problems with the body of the car. When Navistar moved its trucks there, all the trucks leaving Mexico, went to a location in Texas, to go over the truck to make sure everything on it was ok. I don't think the quality will be there for many years. Besides, that they are paid 5.00 hourly wage, we in NA couldn't make it on that.

[bush_cheney2004]

When GM first move to Mexico, a friend bought a car made there and they has several problems with the body of the car. When Navistar moved its trucks there, all the trucks leaving Mexico, went to a location in Texas, to go over the truck to make sure everything on it was ok. I don't think the quality will be there for many years. Besides, that they are paid 5.00 hourly wage, we in NA couldn't make it on that.

Mexico is part of Norte America....this fact seems to be lost on many lamenting the loss of Ontario automotive jobs. Canada is only 8% of Norte America's population, si ?

[overthere]

Maybe that's the point...North America is just part of a global market, and Volkswagen Group is the second or third largest manufacturer of automotive products in the world. Parts and service are very expensive if you depend on a dealership....I don't...can do my own work with online parts and consumables. That includes a VAG-COM software tool.

My spouse's late model Corolla is less expensive to maintain, but it is not designed or built as well as the VW. Mother-in-law just bought a new Golf...she loves it.

I've been driving Hondas for a while, and my skills and array of tools are both getting rusty.

I recognize that VWs are fun to drive, but for my wallet and my experience they are far too expensive to buy and constantly fix.

Never again. I would not even bother checking them for the next purchase.

[Wilber]

My truck was assembled in Mexico and has been great. Even its Cummins engine might have a block cast in Brazil. My 04 Jetta TDI was a good little car, Had a few problems while on warranty but oddly, very little since. Dealer repairs are expensive but not too bad if you can find a good independent shop, My son has it now. It was assembled in Brazil.

[bush_cheney2004]

Windsor loses out to Mexico for new Ford engine and transmission plants.

...Windsor, Ont., had hoped to land the engine plan, but autoworkers union Unifor learned last year that the Ford was favouring Mexico. The automaker was unable to reach an a deal with the federal and Ontario governments to bring the engine plant to Windsor, Ont., Unifor said.

http://www.cbc.ca/news/business/ford-s-2-5b-engine-plant-to-be-built-in-mexico-1.3038131

[Mighty AC]

The Conservative Government has lent $526 million to Volkswagen to expand its operations in Mexico and the US.

"The government says the loan is designed to create opportunities for Canadian businesses to work with Volkswagen, but critics claim the money comes with no guarantee the manufacturer will buy products from Canadian parts makers.

Volkswagen currently has no manufacturing presence in Canada." http://news.nationalpost.com/news/canada/union-condemns-crown-agency-for-lending-volkswagen-millions-753504

The Harperites have lent more money to operations in Mexico, than Mexico.