Case Study_ The Wall Street Journal Case in the News.docx

General motors co ford motor co and fiat crysler

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Motor Co., General Motors Co., Ford Motor Co., and Fiat Crysler Automobiles NV (Jones, 2016). With the success of many of these companies, this has caused an investment wave and placing Mexico in seventh place of the world’s producer of cars. According, to industry analysts Mexico produces a total of 3.2 million cars and trucks annually (Jones, 2016). Background There are many advantages which companies have if they decide to manufacture in Mexico. Such as saving 80% of dependable labor, real estate, and overall operating cost. In addition, businesses have access to a variety of consumer in the industry to export their products easily and cheaply. Another advantage includes Mexico’s workforce demographics which totals 47
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Why Auto Makers Are Building New Factories in Mexico 3 million people of labor force with the median age of 26. In addition, workers are not just qualified but currently has 115,000 graduated engineers annually. Mexico is part of the North American Free Trade Agreement which makes their economy diverse. Along with their cultural environment, it helps companies to balance risk effectively. Finally, their ease of entry is simple because Mexico provides access to shelter services through a system known as maquiladora ( Advantages of Manufacturing in Mexico). With many advantages, it is clear why many well- known companies decide to move their operational factories and companies to Mexico. Business
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