Bailout Watch 506: Union Think Tank Calls for Mexican Auto Cap

Robert Farago
by Robert Farago

The New York Times really pisses me off. This is not the first Gray Lady story I’ve read based entirely on a report by a “think tank”—where the reporter somehow fails to mention the organization’s ties to labor unions. In this case, scribe Elisabeth Malcolm is happy to share the results of a study from the “Economic Policy Institute, a Washington think tank that studies economic issues that affect workers.” In this report ( download pdf here) EPI economist Robert E. Scott “argues that saving American automakers may instead end up saving — and even creating — Mexican jobs.” And that means that the feds should use the Motown bailout as a lever with which to undermine The Big 2.8’s plans to build cars in non-unionized Mexico. “The conditions Mr. Scott proposes: G.M. and Chrysler (and Ford, if and when it asks for money) should face a limit on their investments in Mexico. The way to do that would be a cap on imports from Mexico as a share of sales. He also suggests a domestic content requirement for American-made cars that would halt the increase in parts imports from Mexico.”

Holy frijole! As Malcolm [eventually] points out, that’s not exactly a NAFTA-friendly position. But it is union-friendly. No surprise there (for those of us with a yen to Google). The EPI gets 29 percent of their money ( by their own reckoning) from unspecified labor unions, with at least some of that funding coming from the union-dominated Democracy Alliance. A fact worth mentioning, yes? In fact, I reckon Malcolm should spend a summer in provenance. This summer, preferably.

Anyway, what are the odds the Presidential Task Force on Autos will use their power to force post-C11 “good” GM to build cars in the US of A, rather than Mexico? And what of Canada? Chaos theory need apply.

Robert Farago
Robert Farago

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  • Bertel Schmitt Bertel Schmitt on Apr 25, 2009

    shiney2: History tells us that any meddling with market forces usually prolongs agony. The one and only exception I would allow is banks. People need assurance that their cash deposits (but not their at risk investments, such as stocks & bonds ) are safe. Otherwise we are back to bartering. I would let banks fail, but deposits must be insured. It's part of the promise to the people that the piece of paper called money actually has value.

  • The_mexican The_mexican on Sep 04, 2009

    If the car in the picture was in fact made in Mexico, it must be a "Dinalpin". DINA (DIesel NAcional) manufactured the Alpine for Renault in the 60's, thus the name.

  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
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