Thread: Bloomberg:GM Ford boost Mexico output with $26 a day workers

http://www.businessweek.com/news/2010-0 ... ate2-.html

Updates Ford share price in 20th paragraph.)

By Thomas Black

June 9 (Bloomberg) -- Mexico’s share of North American auto production may rise at a quicker pace as General Motors Co., Ford Motor Co. and Chrysler Group LLC seek out workers making less than 10 percent of what their U.S. counterparts earn.

The lower labor costs may help the U.S. companies build smaller cars profitably amid demand for fuel-efficient vehicles in the wake of last year’s recession. Mexico’s gains will come at the expense of workers in the U.S. and Canada, said Dennis DesRosiers, president of DesRosiers Automotive Consulting Inc.

“There is going to be more capacity put into North America and Mexico is going to get more than its fair share,â€

Mexico is also a tremendous market for Americas used cars. A big part of the price you get when you sell a used car here is caused by the demand from Mexican buyers for American used cars.