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What’s good for G.M. is good for Mexico…

3 June 2009

or, so argues Edgar Amador in The [Mexico City] News.

Company managers are appointed to maximize profits for its shareholders, but in this case it’s a little bit different. GM’s largest shareholder [is the United States government]…

…  if GM really wants to become a contender again, it has what it takes south of the Rio Grande: a partner with 105 million people, with lower labor costs, ample infrastructure to ship exports abroad and flexible labor regulation.

Cities such as Silao, Ramos Arizpe, Saltillo, Toluca and San Luis Potosí already host some of GM’s vanguard facilities in the world.

Mexican GM plants assemble mostly four-cylinder vehicles and may be set up to manufacture hybrid and ecology friendly cars, such as the one required by the new U.S. government blueprint. Mexican plants, for GM, are among the lowest cost and most efficient plants in the conglomerates.

The easiest way out for GM is to move as much of its production capacity as it can down to Mexico. But that’s easier said than done. What would U.S. taxpayers say the moment they find out that their taxes used to bail out GM are being used to ship jobs, not cars, south, that they are paying taxes so that their precious few jobs are GM … G(one) to M(exico)?

I think the point is that the United States is locked into its consumerist economy. In which case, saving the jobs related to the sales and service of a good s a more pressing goal than creating the goods themselves.

At least in the short term, while the U.S. plants (and entire management and labor situation is reformulated) Mexican workers may be what’s good for G.M. and the U.S. taxpayers.

(By the way — I notice that this was the only Mexico-related article on the  “New” News’ editorial page — the lead editorial dealt with Burma and the United Nations Security Council (although Mexico is a member of the Security Council this year, there was no mention of the fact, nor any suggestion that Mexican diplomats take a lead on this issue),  and the others with internal politics in the United States.   The only “News” produced story I could find was an overview of the back and forth over projected debates between the chairs of PAN, PRI and PRD).

Malcolm… hire David Agren back, and give him a raise!.  And, maybe you can drag Kelly Arthur Garrett out of retirement.)

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