$15 Billion GM Investment in China – Where’s Auto Manufacturing in America

auto plants MexicoU.S. based auto manufacturers are thinly spread throughout the country in places like Tennessee, South Carolina and Ohio. But the vast majority of auto manufacturing investment capital is going to places like Aguascalientes, Mexico and Shanghai, China; where a growing middle class population is  driving the demand for new jobs and better quality of life.

As billions of dollars continue to pour into emerging countries like India and China, we’re finding less “Made in America” cars on the road. In fact, about 2 in 4 cars now are not fully manufactured in the USA. Either the parts are shipped in from Mexico and/or the entire car is assembled then brought to the states. About 65% of all cars GM, Ford, Chrysler are not made in America. – READ MORE ABOUT MADE IN AMERICA …

GM plans to manufacture cars at five new plants in CHINA and import them into the United States.  READ FULL WSJ ARTICLE…

Why Auto Manufacturing has Moved to Mexico …

Mexico has some of the most liberal free trade arrangements in the world, and it’s making the most of them. While Washington spent a decade obsessed with the War on Terror to the exclusion of economics-based foreign policy, Mexico was busy hammering out deals, and politicians like Lozano were luring investors. Today Mexico has free trade agreements with 44 countries, making it an ideal export base for automakers from Europe, China, Japan and, yes, America. The U.S.? We have agreements with only 20 countries, and Beltway protectionists have helped ensure we haven’t enacted a new one since 2012. Negotiations on the ambitious 12-nation Trans-Pacific Partnership remain pathetically slow.

For example, Aguascalientes, Mexico has long been a major railroad hub because of its strategic location among the major population centers of Mexico City, Guadalajara and Monterrey. The capital city, also named Aguascalientes, is choked with traffic circling the pedestrian plaza, with its charming Spanish colonial architecture. Just outside the city, however, Aguascalientes looks like any other sprawling southwestern suburb, with shopping malls, hotels and industrial areas, including a new Texas Instruments plant.

Dominating the dun-colored horizon a few miles to the south is Nissan’s massive new 21-million-square-foot factory. With its bright white walls and roof, it is Lozano’s pride and joy. The governor helped engineer a deal where the government sold the land, just 4 miles from another Nissan factory, to the Japanese carmaker for next to nothing. Nineteen months later the $2 billion plant, one of the largest industrial investments ever made in Mexico, was up and almost running, a record for Nissan. Production of the fourth-generation Nissan Sentra began last November and was quickly ramped up to full capacity of 175,000 vehicles a year, operating 23 hours a day, 6 days a week. Some 3,000 jobs were created, and another 9,000 at supplier companies. “The success of Nissan is the success of Aguascalientes,” says Esau Garza de Vega, Lozano’s top economic development officer.


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