Photo: GM
Following the Great Auto Bailout, the U.S. Treasury sold GM stock with a $10.5-billion loss for taxpayers. This didn’t rub off well at all with the hard-working men and women of the United States, and neither does the $1 billion investment into the Ramos Arizpe assembly plant in Mexico.
The facility will be transformed into a state-of-the-art EV complex in 2023, joining the likes of Factory ZERO, Spring Hill, Orion, and CAMI. Ramos Arizpe will also make batteries and electrical components from the second half of 2021, including drive units for yet-to-be-detailed electric vehicles.
“At a time when General Motors is asking for a significant investment by the U.S. government in subsidizing electric vehicles, this is a slap in the face for not only UAW members and their families but also for U.S. taxpayers and the American workforce,” declared UAW vice president Terry Dittes.
You can’t blame Terry for being too protectionist, but on the other hand, the United Auto Workers doesn’t highlight why General Motors chose Mexico instead of the United States or Canada. The simple answer is labor cost, which is correlated with Mexico’s lower wages and living standards.
The southern neighbor is joined at the hip with the U.S. and Canada as well by the USMCA free trade agreement, which was proposed by Donald Trump during the G20 Summit of 2018. The billion-dollar investment also benefits the good people of Mexico and local suppliers, which can be interpreted as a win-win situation for every party involved. As for the North American car buyer, an EV that is made in Mexico will sell at a more reasonable price than an electric vehicle that is produced in the U.S. or Canada.
GM responded to the UAW by highlighting the recently announced 9,000 jobs in EV and battery manufacturing facilities in Michigan, Ohio, and Tennessee, which can only be described as second-rate whataboutism.
“At a time when General Motors is asking for a significant investment by the U.S. government in subsidizing electric vehicles, this is a slap in the face for not only UAW members and their families but also for U.S. taxpayers and the American workforce,” declared UAW vice president Terry Dittes.
You can’t blame Terry for being too protectionist, but on the other hand, the United Auto Workers doesn’t highlight why General Motors chose Mexico instead of the United States or Canada. The simple answer is labor cost, which is correlated with Mexico’s lower wages and living standards.
The southern neighbor is joined at the hip with the U.S. and Canada as well by the USMCA free trade agreement, which was proposed by Donald Trump during the G20 Summit of 2018. The billion-dollar investment also benefits the good people of Mexico and local suppliers, which can be interpreted as a win-win situation for every party involved. As for the North American car buyer, an EV that is made in Mexico will sell at a more reasonable price than an electric vehicle that is produced in the U.S. or Canada.
GM responded to the UAW by highlighting the recently announced 9,000 jobs in EV and battery manufacturing facilities in Michigan, Ohio, and Tennessee, which can only be described as second-rate whataboutism.
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