The unions have priced US labor out of the market. When you can pay Mexico workers $1.90/hour (and they are glad to have it!), why would you pay US workers union wages?
General Motors enters 2019 as the top carmaker in Mexico.
The distinction comes as GM plans to shutter four U.S. manufacturing facilities this year, putting thousands of jobs at risk and drawing political and labor criticism of its decision to produce so many vehicles in Mexico, particularly the new Chevrolet Blazer SUV.
GM’s rise in Mexico is largely because of Nissan scaling back its sedan production there, slipping from the top position. GM, on the other hand, has been retooling its San Luis Potosi plant and Ramos Arizpe facility in recent years to shift to SUV and pickup production.
GM said its boost in production is to meet the strong demand for SUV and pickups, as sedans have fallen out of buyers’ favor.
“Production levels in all markets fluctuate with customer demand. For example, the continued growth in crossovers, pickups and SUVs is driving increases in production and employment at GM plants in Flint; Arlington, Texas; and Spring Hill, Tennessee,” GM spokesman Pat Morrissey said in an email.