Ford's Verve to Be Hecho En Mexico
Ford will build the Verve (or whatever they end up calling their subcompact) in Mexico. And we know this because…? The Detroit Free Press reports "two people with knowledge of Ford's production plans" told them so. Although Ford refuses to identify the location of their new subcompact's fabricator, it appears the concessions given by the UAW still don't make a U.S.-built economy car a profitable proposition. Global Insight's NA light-vehicle production manager doesn't see "Made in America" making a comeback anytime soon. "In general we see capacity in the U.S. dropping," Haig Stoddard advised. "And continuing to gradually rise in Mexico." That's at least until the automakers replace most of their older UAW work force with cheaper new hires. But even at the lower $14.20 per hour rate, American workers still make a lot more than their Mexican counterparts. Between that and the Mexican government's willingness to contribute incentives, well, it's a slam dunk. No matter where it's made, Ford needs the Verve ahora. ¡Ándale!
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Verve actually was my favorite car at the whole car show last month. And I don't mete out compliments to Detroit lightly. On the other hand I'm fairly confident Ford will find a way to uglify it before it goes retail.
I don't question the Mexicans' ability to manufacture quality vehicles. I question Ford's ability to continue to scream "Buy American!" when more than 50% of their vehicles (on sale in America) are built in either Mexico or Canada. Nothing against our neighbors (especially since they seem to build better quality vehicles than we do...), but Ford's hypocrisy is going to run its course....straight into the ground.
Even with this built in Mexico, Ford still produces more vehicles in the U.S. than Toyota or Honda. Further, the profits from this car go to the U.S. When Ford makes money on these cars, they can afford to keep and hire new engineers, managers and other individuals with high-skill, high-paying jobs in the states (in Michigan, to be more precise). And although Ford has design centers around the world (much as Toyota, Honda, Nissan, GM, etc), most of their high-skill, high-pay individuals live here. No other B-car is built in the U.S. No one is stupid enough to do that. There are several C-cars built here, though, so it's no surprise that Ford can produce its Focus here. If the Fusion could command a slightly higher price, Ford could build the Fusion here as well. But first, Ford needs to get profitable. And that will benefit our economy much more than continuing losses but building the Verve here.
There was never a chance in hell of the Verve being built in the US. Also, in a carryover from the F-name era the Verve will enter the NA market as the Flerve.