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Mexico, with its trade advantage, catches eye of VW

Tennessean / Chattanooga Times Free Press -- Local Volkswagen officials say they’re fighting within the giant automaker to win a second vehicle for the Chattanooga assembly plant.

A lack of free trade pacts between the United States and other nations may steer future VW production to Mexico rather than Tennessee, according to industry experts and others.

Jay Baron, chief executive of the Center for Automotive Research in Ann Arbor, Mich., said Mexico has free trade agreements with 44 countries. The U.S. has 19, he said.

As a result, cars built in Mexico can be exported to more countries without the manufacturer having to pay import duties, which can boost the price of a vehicle by up to 10%.

That Mexican trade advantage encouraged Volkswagen to put its Audi plant in Mexico rather than in Chattanooga; Huntsville, Ala.; or another

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Submitted Oct 23, 2012 By: DellDude2

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KhelbenArunson Champion Author Michigan Posts:4,456 Points:719,815 Joined:Apr 2008	Message Posted: Oct 24, 2012 7:46:33 PM Ignore KhelbenArunson Report Abuse ok
rjhenn Champion Author Des Moines Posts:22,459 Points:2,231,875 Joined:Aug 2005	Message Posted: Oct 24, 2012 5:42:05 PM Ignore rjhenn Report Abuse defiancegasman has it right. Free trade is just another way to export jobs.
remay Champion Author Houston Posts:6,978 Points:2,119,565 Joined:May 2006	Message Posted: Oct 24, 2012 3:50:55 AM Ignore remay Report Abuse Hope they KNOW who they are doing business with...
tomok Champion Author Portland Posts:33,073 Points:2,347,460 Joined:Aug 2006	Message Posted: Oct 24, 2012 2:09:39 AM Ignore tomok Report Abuse Mexico, with its trade advantage, catches eye of VW and rightly so! When Mexico has free trade aggreements with 44 countries and the labor is much less, locate there to build your vehicles. Fred does Not see the advantage of more free tgrade agreements in certain instances. 'Coming out of the closet' Fred's lousy, smoke and mirrors, lack of jobs, dog and pony show and in the crapper economy, the 'jobs' are Not here. Fred's economy is not improving but continues to hurt the population and the job numbers continue to be down! People will still drive and buy fuel no matter what but it sure helps to have a job too! Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high! XII/XXII/MMXII!
NedW Champion Author Indianapolis Posts:5,625 Points:1,144,345 Joined:Mar 2008	Message Posted: Oct 24, 2012 1:33:11 AM Ignore NedW Report Abuse ...courtesy of bi-partisan free trade agreements like NAFTA, etc.
jmaustin80 Sophomore Author Alaska Posts:159 Points:189,875 Joined:Mar 2012	Message Posted: Oct 24, 2012 12:06:37 AM Ignore jmaustin80 Report Abuse Who cares about Mexico, they already have a big enough hand in our vehicle manufacturing.
bvrbill Champion Author Eugene Posts:3,238 Points:520,800 Joined:Jul 2011	Message Posted: Oct 23, 2012 9:26:28 PM Ignore bvrbill Report Abuse Hate to see good jobs going to other countries.
defiancegasman Champion Author Ohio Posts:7,080 Points:1,323,260 Joined:May 2006	Message Posted: Oct 23, 2012 9:19:15 PM Ignore defiancegasman Report Abuse Free TRADE is really FREE AMERICAN JOBS GIVEAWAY. It only allows the "THIRD WORLD" countries to pay their workers a few dollars and hour, if that and allows them to SHIP THE GOODS here, free of any duty. Don't know of any area in AMERICA where you can raise a family on less than $10/hour without being on welfare or some type of FEDERAL AID!! It's BAD for the companies too, because their workers can NOT even buy the cars they are making. The FREE TRADE is just returning the world to the days of KINGS and SERVES!!
PrinceLH Champion Author Ontario Posts:2,707 Points:540,970 Joined:Jun 2011	Message Posted: Oct 23, 2012 9:14:09 PM Ignore PrinceLH Report Abuse Obama is a liar of the highest order.
obimerrill Champion Author Cincinnati Posts:1,455 Points:292,640 Joined:Jul 2012	Message Posted: Oct 23, 2012 9:07:22 PM Ignore obimerrill Report Abuse So because Obama has blocked the free trade agreements, cars built here cost more and thus companies are building them elsewhere. Interesting that Obama's policies can now be proven to be sending jobs out of this country.
JagXKR Champion Author British Columbia Posts:3,169 Points:1,093,480 Joined:Dec 2009	Message Posted: Oct 23, 2012 9:07:10 PM Ignore JagXKR Report Abuse They are way ahead of the game when it comes to trade.
southrob Champion Author Tucson Posts:3,610 Points:690,125 Joined:Mar 2011	Message Posted: Oct 23, 2012 9:05:15 PM Ignore southrob Report Abuse dhan for cheap gas
PissedATthePump All-Star Author Pennsylvania Posts:507 Points:119,580 Joined:May 2012	Message Posted: Oct 23, 2012 9:02:21 PM Ignore PissedATthePump Report Abuse ok
Cellsite Champion Author Appleton Posts:1,241 Points:289,085 Joined:Jun 2012	Message Posted: Oct 23, 2012 9:00:09 PM Ignore Cellsite Report Abuse Ok.
tidalwave3 Champion Author Tallahassee Posts:1,308 Points:1,466,180 Joined:Jun 2008	Message Posted: Oct 23, 2012 8:56:34 PM Ignore tidalwave3 Report Abuse So what
fuelsaverMN Champion Author Twin Cities Posts:2,282 Points:559,080 Joined:Mar 2011	Message Posted: Oct 23, 2012 8:54:41 PM Ignore fuelsaverMN Report Abuse No more free trade agreements.
fuelsaverMN Champion Author Twin Cities Posts:2,282 Points:559,080 Joined:Mar 2011	Message Posted: Oct 23, 2012 8:53:35 PM Ignore fuelsaverMN Report Abuse That is awful.
saleboss Champion Author Phoenix Posts:3,929 Points:1,177,875 Joined:Feb 2006	Message Posted: Oct 23, 2012 8:53:19 PM Ignore saleboss Report Abuse What advantage does Mexico have?
radiorumor Champion Author Texas Posts:2,822 Points:756,560 Joined:Feb 2011	Message Posted: Oct 23, 2012 8:51:16 PM Ignore radiorumor Report Abuse Before long we'll be sneaking into Mexico
WIWalt Champion Author Wisconsin Posts:1,741 Points:418,470 Joined:Mar 2012	Message Posted: Oct 23, 2012 8:50:41 PM Ignore WIWalt Report Abuse Gas Prices?
lowspeed All-Star Author Akron Posts:736 Points:203,230 Joined:Aug 2008	Message Posted: Oct 23, 2012 8:47:55 PM Ignore lowspeed Report Abuse ok
Gas4Gore Champion Author Detroit Posts:2,431 Points:425,825 Joined:Jan 2010	Message Posted: Oct 23, 2012 8:47:55 PM Ignore Gas4Gore Report Abuse Okay
kbierley Champion Author Dayton Posts:10,730 Points:1,415,690 Joined:Nov 2003	Message Posted: Oct 23, 2012 8:46:06 PM Ignore kbierley Report Abuse Trade Advantage?
Suzzoom Champion Author Nevada Posts:2,378 Points:508,090 Joined:Jan 2011	Message Posted: Oct 23, 2012 8:45:18 PM Ignore Suzzoom Report Abuse Where are all those politicians who said free trade would be bad for the US economy?
fenster66 Champion Author Pittsburgh Posts:3,360 Points:676,040 Joined:May 2011	Message Posted: Oct 23, 2012 8:44:45 PM Ignore fenster66 Report Abuse Ok....
CCLighthouse Champion Author Hartford Posts:1,018 Points:215,955 Joined:Aug 2012	Message Posted: Oct 23, 2012 8:42:45 PM Ignore CCLighthouse Report Abuse I don't blame Europe for not accepting our G. M. O. food for export. It is not good for us and it is not good for anyone else! : (
usnerd Veteran Author Dayton Posts:317 Points:230,805 Joined:Jul 2012	Message Posted: Oct 23, 2012 8:38:59 PM Ignore usnerd Report Abuse Sounds like posturing to get the best contract negotiations.
BigKart All-Star Author Indianapolis Posts:776 Points:227,850 Joined:Apr 2011	Message Posted: Oct 23, 2012 8:36:27 PM Ignore BigKart Report Abuse That doesn't make sense. There are more Mexicans here than there! We could build them here with Mexican labor! (I think..)
Dodge_Me Champion Author Atlanta Posts:2,214 Points:557,730 Joined:Mar 2006	Message Posted: Oct 23, 2012 8:34:39 PM Ignore Dodge_Me Report Abuse that sucks
BREW9 All-Star Author Tampa Posts:896 Points:2,914,905 Joined:Jun 2004	Message Posted: Oct 23, 2012 8:33:23 PM Ignore BREW9 Report Abuse ok
tanostoyano Sophomore Author Chicago Posts:206 Points:119,465 Joined:Sep 2012	Message Posted: Oct 23, 2012 8:33:22 PM Ignore tanostoyano Report Abuse Hate Jetta drivers!
kcboy Champion Author Utah Posts:3,983 Points:1,510,725 Joined:Jun 2005	Message Posted: Oct 23, 2012 8:33:21 PM Ignore kcboy Report Abuse Good luck
Mustache_33 All-Star Author Toronto Posts:900 Points:181,455 Joined:May 2012	Message Posted: Oct 23, 2012 8:32:28 PM Ignore Mustache_33 Report Abuse what matters is to keep VW in Chattanooga (for job purposes). There is always a market for FORD buyers and VW buyers. It's all about making the best deal for both labor and corporations.
nwsynthetics Champion Author Oregon Posts:1,014 Points:347,625 Joined:Dec 2011	Message Posted: Oct 23, 2012 8:32:13 PM Ignore nwsynthetics Report Abuse Price of doing business. say bye,bye to jobs in US
JettaKnight Champion Author Toronto Posts:1,518 Points:2,104,220 Joined:Nov 2005	Message Posted: Oct 23, 2012 8:29:37 PM Ignore JettaKnight Report Abuse genie_racing Colorado "Hmmm, remember that giant sucking sound of jobs leaving this country after NAFTA was signed? "Free Trade" pacts never seem to help THIS country very much. They always seem to help everyone else." Yeah. Right. When the FIRST Free Trade Agreement was signed between Canada & the U.S., WE heard the giant "sucking sound" of OUR jobs going south to the U.S. Don't feed us your B.S. about agreements NEVER benefiting YOU. We had a Prime Minister that was a MAJOR suck-up to the U.S. & bent over backwards to give away OUR jobs & resources for next to nothing, while the Canadian CITIZENS that got the REAMING!! The ONE time it doesn't go YOUR way, too many of you whine like spoiled little brats. Grow up and face the REAL world. Kudos to those of you that are mature enough to realize the TRUE nature of a global economy. This article is about a company doing EXACTLY what one of YOURS would do in ANY other country.
mstearno Champion Author Dayton Posts:8,080 Points:1,734,140 Joined:Jan 2008	Message Posted: Oct 23, 2012 8:28:10 PM Ignore mstearno Report Abuse good for them
GManCo Champion Author Colorado Springs Posts:5,006 Points:953,540 Joined:Sep 2010	Message Posted: Oct 23, 2012 8:26:59 PM Ignore GManCo Report Abuse We need to solve this problem.
mvoth1 Rookie Author Kansas City Posts:38 Points:20,110 Joined:Jun 2012	Message Posted: Oct 23, 2012 8:24:50 PM Ignore mvoth1 Report Abuse I have been driving Fords and Pontiac's since the 60's...What VW does, doesn't affect me in the least...Think about your American Co's first. Get better at what we're doing and you won't need to worry about VW, Nisson or anyone else for that matter...Remember what the slogan "Made In Japan" did to our economy back in the 60's and 70's well how do you like "Made In China"? No difference but somebody sure got rich and it wasn't me...I can remember when a fully equipped Boss Mustang run about $2500.00 but of course wages were $3.00/hr but guess what you could afford more, then.. Now, you couldn't touch that very same car for less than $25,000 or buy a new one for less than $40,000 but wages are $7.50/hr. Why you couldn't afford the tires...Today! Enjoy your day! GLTU!
naspa Champion Author Cleveland Posts:1,281 Points:354,100 Joined:Jan 2012	Message Posted: Oct 23, 2012 8:23:59 PM Ignore naspa Report Abuse Business is business.
Is246 Champion Author Albuquerque Posts:1,019 Points:428,710 Joined:Apr 2011	Message Posted: Oct 23, 2012 8:15:30 PM Ignore Is246 Report Abuse Good for them.
PoohMcGoo Champion Author Alabama Posts:3,077 Points:802,635 Joined:Dec 2010	Message Posted: Oct 23, 2012 8:14:30 PM Ignore PoohMcGoo Report Abuse That's the global economy we live in.
REKEY Champion Author South Carolina Posts:8,589 Points:1,701,365 Joined:May 2008	Message Posted: Oct 23, 2012 8:13:30 PM Ignore REKEY Report Abuse Hope they build better than China does!
furiousfowl Champion Author Riverside Posts:16,870 Points:2,752,105 Joined:May 2005	Message Posted: Oct 23, 2012 8:11:12 PM Ignore furiousfowl Report Abuse CHEAP LABOR!
OGW Champion Author London Posts:5,334 Points:1,534,725 Joined:Sep 2005	Message Posted: Oct 23, 2012 8:11:02 PM Ignore OGW Report Abuse I wondered why we are getting more Audis in the shop but building them in Mexico means they will fail sooner than later.
kishoreCA Champion Author Ventura Posts:3,129 Points:394,845 Joined:Mar 2012	Message Posted: Oct 23, 2012 8:09:05 PM Ignore kishoreCA Report Abuse another loss
iamforiu Champion Author Indiana Posts:3,585 Points:713,690 Joined:May 2011	Message Posted: Oct 23, 2012 8:06:30 PM Ignore iamforiu Report Abuse interesting
serrog Champion Author Nova Scotia Posts:5,579 Points:1,515,055 Joined:Oct 2008	Message Posted: Oct 23, 2012 8:05:04 PM Ignore serrog Report Abuse Gas Prices????????????????????????
genie_racing Champion Author Colorado Posts:6,020 Points:811,605 Joined:Jul 2006	Message Posted: Oct 23, 2012 8:01:49 PM Ignore genie_racing Report Abuse "A lack of free trade pacts between the United States and other nations may steer future VW production to Mexico rather than Tennessee..." Hmmm, remember that giant sucking sound of jobs leaving this country after NAFTA was signed? "Free Trade" pacts never seem to help THIS country very much. They always seem to help everyone else.
nru Champion Author Twin Cities Posts:1,758 Points:985,105 Joined:Feb 2006	Message Posted: Oct 23, 2012 8:01:33 PM Ignore nru Report Abuse It's all crass comercialism - pocket over patriotism. We need to stop this stuff as a country, or we will go under.
30mpg80 Champion Author Lexington Posts:10,061 Points:1,489,805 Joined:Nov 2008	Message Posted: Oct 23, 2012 7:59:29 PM Ignore 30mpg80 Report Abuse It all adds up