Why Auto Makers Are Building New Factories in Mexico, not the U.S.

[former9thward]

Array of Free-Trade Pacts Favors Mexico Over U.S. South as Site for North American Assembly Plants

CHATTANOOGA, Tenn.—A barren patch in the rugged hills along the Tennessee River is a sign of how Mexico has accelerated past the U.S. South in the global competition for auto investment.

The tract of cleared woodland lies alongside a factory Volkswagen AG set out to build in 2008. VW took an option on the adjacent 800 acres as a place where its Audi unit might build a North American plant someday.

But four years later, when Audi decided to move global production of its Q5 SUV to North America, the prize went to Mexico. Audi now is finishing a $1.3 billion factory in a gritty south-central Mexico town called San Jose Chiapa. The plant’s massive buildings rise like supertankers from dun-colored fields where families scrape by raising corn and beans.

Mexico’s low wages and improved logistics were part of the draw. But for Audi, which plans to ship the factory’s output all over the world, what tipped the scales was Mexico’s unrivaled trade relationships.

http://www.wsj.com/articles/why-auto-makers-are-building-new-factories-in-mexico-not-the-u-s-1426645802?KEYWORDS=mexico+trade+deals

Will no American leader recognize these free trade pacts are worthless in a world that only acts in their own interests?

[clarice]

1. Make your state business friendly, and they will come. Companies are moving to Texas every day. nt

[KamaAina]

2. How much are they paying?

And is Tennessee not "business-friendly"?

[clarice]

4. I'm not sure what Tennessee's business climate is like....

'm not sure what you meant by "How much are they paying"

[KamaAina]

5. I hear the co's moving to Texas are paying dirt-cheap wages.

[clarice]

6. Anti-Texas propaganda most likely. nt

[NoJusticeNoPeace]

28. And looking the other way on the environment, etc.

[clarice]

29. Well...we can't all be South Dakota. nt

[upaloopa]

11. They pay shit wages. No taxes and pass

the social costs onto the local tax payers. Texas sucks as a place to live.
It isn't a good thing to force America to compete in a race to the bottom with other countries.
You want to see a state that is thriving come to CA and don't base your opinion on right wing Texas propaganda.

[clarice]

12. Oh Brother here we go....Texas-envy. nt

[upaloopa]

16. I am the last person to envy Texas.

The last time I drove through there I couldn't wait to get to the next state.

[clarice]

17. We couldn't wait either. nt

[upaloopa]

20. Where do you usually post your stuff?

You obvious are not a liberal Democrat.
Nobody will agree with what you say here so why are you here?

[clarice]

21. LOL.......you have no IDEA what I am......and

I don't go through life worrying about whether people agree with me. Is it that whole
"Freedom of Speech" thing that bugs you so much?

[upaloopa]

24. Nobody knows you but you know everybody else

You make no sense

[clarice]

25. That's because I'm a thought Ninja !!!!

[customerserviceguy]

54. Great!

There's a lot of bashing of the South on this site. Every time I go there, all I encounter are friendly people.

[clarice]

15. BTW....you said "no taxes" like that was a bad thing. nt

[upaloopa]

18. You need infrastructure to run a business

Taxes pay for that. If I didn't believe you were that dumb I'd probably be alerted on what I would say about you.

[clarice]

19. Take a deep breath...don't tax yourself. nt

[upaloopa]

22. Typical response from people with nothing much

to say

[clarice]

23. Blah blah blah.....I'm done with you. Next?

[Major Nikon]

30. A tax break for one is a tax burden for everyone else

[clarice]

31. Not if they're not paying ANY taxes. Just sayin' nt

[Major Nikon]

32. Some corporations don't pay ANY taxes

Everyone else does. So sure, for some corporations, there isn't any additional burden.

[clarice]

33. True...but I was referencing the PEOPLE who don't pay taxes....THERE's the burden. nt

[Major Nikon]

37. Who would that be?

I suspect you've been listening to too much talk radio.

[clarice]

38. Who would that be? The people who don't pay taxes, as I clearly said. nt

[Major Nikon]

39. If you want to be evasive about it, I'll rephrase

How do people avoid paying all taxes?

[clarice]

40. By not having taxable income. nt

[Major Nikon]

41. Wrong answer

I didn't ask how people avoid paying some taxes.

Here's the question I asked:

How do people avoid paying all taxes?

I did not ask, 'How do people avoid paying all federal income taxes except for FICA and Medicare'.

Talk radio also frequently refers to people who "don't pay taxes" as people who don't pay federal individual income taxes, while conveniently ignoring FICA, Medicare, state income taxes, sales taxes, fuel taxes, property taxes, excise taxes, and a few dozen other forms of taxation almost all of which are highly regressive.

I'll ask again and perhaps you'll read the question better this time.

How do people avoid paying all taxes?

[clarice]

42. First of all, I seeI will take your word for talk radio. I don't listen to it......

and of course not everyone is immune to sales taxes, fuel taxes etc. But the bulk of tax revenue comes from
Federal income tax, Fica, et al. If you don't work...you don't pay them. Perhaps, if you're lucky, you live in a state like Texas with NO state income tax. Secondly, your statement about all taxes being regressive is simply not true. For example, I will pay $50,000 in Federal Income tax this year. Just think about that ! That doesn't include the money that my family donates to charity. And before you say " You must be wealthy and so you SHOULD pay" By what means do you condone the fact that others are entitled to my HARD earned money? Do they put in the same effort that I do? Did they live on rice and beans for 3 years in order to build a business?
I pay MORE than my share, I wish that others were willing to contribute to the pot.

[Major Nikon]

43. Perhaps not, but you certainly repeat the same misleading information

Secondly, your statement about all taxes being regressive is simply not true.

Had I wrote that, it would be not true. Here's what I actually wrote:

Talk radio also frequently refers to people who "don't pay taxes" as people who don't pay federal individual income taxes, while conveniently ignoring FICA, Medicare, state income taxes, sales taxes, fuel taxes, property taxes, excise taxes, and a few dozen other forms of taxation almost all of which are highly regressive.

So from this I can conclude you either have very poor comprehension, or (and most likely) you think strawman gibberish is a suitable substitute for a reasoned response.

[clarice]

44. Ok...I tried my best ...It is very obvious to me that you are totally incapable of...

a reasoned debate.. Either that, or you are so ingrained with "Lemming Mentality" that trying to educate you
is counterproductive. You are more than welcome to your point of view, but we are so far from a prudent common ground
that I must respectfully terminate our discussion.

"There are none so blind as those who will not see"

All the best to you.

Clarice

[Major Nikon]

45. I don't consider strawman nonsense to be in the same ballpark as "reasoned debate"

YMMV.

[Kingofalldems]

46. So what part of the Democratic party agenda do you agree with?

Certainly not taxes. What?

[Drahthaardogs]

59. I clean up toxic wastes out of your water.

I do think I am entitled to your HARD earned money. Some of us keep you safe at night. Others educate your kids. Yeah, I think I we are entitled to some of that hard earned money of yours. I went to college for eight years to be able to keep toxic wastes out of your water supply.

I don't get paid enough to pay $50,000 in taxes, but I sure wish I had the chance to do it.

What exactly do you do for the rest of us that makes that hard earned money of yours so precious? Sell cupcakes or something?

[Kingofalldems]

47. So you agree with the republicans on this?

They always rail about people who don't pay taxes, unless they are rich of course.

[Blue_Tires]

13. Why didn't Texas get the VW plant, then?

[clarice]

14. Because VW is a commie car...kidding. I don't know.....

why we didn't get it. We DID get Toyota though.

[NoJusticeNoPeace]

27. You mean eliminate environmental protections and not have them pay taxes so your poor

can die and your roads can rot?

[clarice]

34. Huh????!!!! nt

[philosslayer]

35. "business friendly"

As in, "union hostile"?

[clarice]

36. No...not at all.....where did you get that ? nt

[Marr]

49. Or we could make our businesses worker friendly. How about that? /nt

[WinkyDink]

3. 2015 Winner, "NS, S" Award.

[DanTex]

7. The article actually makes the opposite argument that you are making.

It says that the reason Audi and others move to Mexico is because Mexico has more free-trade agreements than the US. I'm not sure if that's true, this is the WSJ after all. But that's what it says.

[former9thward]

8. No, manufactures are able to move to Mexico

easily because of free trade agreements. Every thing being equal they would rather be in a low regulation, low wage country than the U.S. The agreements allow that.

[djean111]

10. Well, hey! The TPP will mean low regulations and low wages!

I will assume this is really a plug for the TPP and the TTIP.
Couldn't read the article, but I was thinking few regulations and low wages were bad.
My bad.

[obxhead]

9. The Clinton family.

[clarice]

26. That's "The Third Way" nt

[tammywammy]

48. I don't understand your argument

I'm not really upset that a German company chose to build another factory in Mexico. I don't see how this is an argument against US Free Trade agreements.

[former9thward]

50. I guess you missed the part about companies going from the U.S. to Mexico.

Maybe you don't consider the South to be part of the U.S.

[tammywammy]

52. There was never an Audi facility in Tennessee.

Volkswagen AG runs a VW facility there building Passats. So they never moved Audi from the US to Mexico. It was never here. This is still a German company building outside Germany. Again not seeing how this is a reflection of US policy. According to the article Mexico has more free trade, then if you're going to use the Audi plant as an example we should push for more free trade to attract companies like VW AG.

[former9thward]

53. I guess you just don't believe the headline.

You know, the one that says companies are building in Mexico and not the U.S. But go ahead and support the next trade deal. Maybe it will work this time....

[tammywammy]

56. I understand the headline just fine.

I don't understand your argument. You're against US free trade agreements. How does a German company choosing Mexico, which has more free trade apparently, strengthen your anti-US trade agreement position.

If anything this article contradicts you. If companies are choosing Mexico because they have more free trade agreements, then shouldn't the US have more free trade agreement to encourage foreign companies like VW AG to build here?

[former9thward]

57. We have much higher labor costs and other costs.

Free trade does not help us.

[tammywammy]

60. How does a German company choosing Mexico for a facility back up an anti-US free trade stance?

NAFTA has no bearing on Germany. Even without NAFTA the US still had higher labor cost compared to Mexico.

This situation doesn't back up your position it contradicts it.

[ND-Dem]

51. Their interest is in not recognizing shit, and lying about it. That's our bought off "leadership".

[RiverLover]

55. Thanks Bush Sr & Clinton for NAFTA!

"Buy American" is now "Bye America".

[Matariki]

58. Does a headline like that even need and answer?

I mean beyond the single character: $