He states that as production moves outside of the U.S. to low-wage countries, American workers suffer at home. This is a serious issue for the company, but it is projected that UAW members will see their wages grow domestically. This will make Ford's move to Mexico even more advantageous for the company. Moreover, top management at the company explained that over the next few years, Ford will spend more than $9 billion in the U.S., which is expected to create or maintain 8,500 jobs. Increasing its presence in Mexico is not the only initiative Ford is implementing. As a part of its strategic "Óne Ford" plan the company has allocated billions of dollars to expand its global production capabilities in places like Spain, Germany, China, the Middle East, and Africa. While Ford's improves its financial outlook, how will it deal with the negative attention generated by moving jobs outside the United States? Is it pos- sible for the company to increase its profitability and reduce its dependence on foreign production? In the current political dimate should the company rethink its plans? You Make the Call 2-35. What is the decision facing Ford? 2-36. What factors are important in understanding this deci- sion situation? 2-37. What are the alternatives? 2-38. What decision(s) do you recommend? 2-39. What are some ways to implement your recommen- dation? Baad oz Danid Mer, Tat Mour Campanys oe Moica lart a New Detopment The Motiay Fad Aol a, zene, ntgutel andnesingeneonGDuOsmata-campunp-noe-maico-aano-de ccead Aprl 11, 201, Ban Saey, Reson Fod Pekad Maco ta a asors-adneko-neut ccead Apl 11, 01, Ana Lan arada Oans, Caostng 0usa Gt Soles Denat rae Peo7, 201 p.conarymaneytantor01OUO a Moica" Fot.com uay 20, 2019, wwattod.com/hestaPagesCcatraingONOasoGna2OSaries20 OMinap cmad Ar 13, 0 Marketing in Action Case Real Choices at Ford Ford Motor Company has committed to investing $1.6 billion to construct a small car plant in the San Luis Potosi State in Mexico. This will result in the creation of more than 2,800 jobs in the country. The Center for Automotive Research states that U.S. automotive labor costs average around $30 per hour and are substantially higher than those in Mexico which average around $5 per hour. This means that moving production to Mexico will allow Ford to lower its cost for small cars and make Ford more competitive in the global auto marketplace. The move will, in turn, allow Ford to reallocate its U.S. facilities to- ward larger vehidles with higher profit margins, like SUVS and F-Series trucks. Furthermore, Mexico has the necessary trans- portation infrastructure to efficiently export the cars back to the U.S. and other markets. Mexico has been a part of Ford's manufacturing history since 1925 when the company became the first automobile manufacturer in the country. According to Gabriel Lopez, pres- ident and CEO of Ford of Mexico, "Ford of Mexico is the fourth largest producer of vehicles, the fourth largest producer of en- gines and the second country in the global auto parts supply company facilities." Over the past 90 years Ford has provided more than $8 billion to build and develop its production capa- bilities in the country. Currently, Ford has two assembly plants, two stamping plants, and an engine plant in Mexico. Increas- ing production output in the country is consistent with Ford's long-term manufacturing plans. The additional investment in Mexico is not without its crit- ics. The issue of jobs leaving the country has always been a part of political debate in Washington, D.C. The announcement of Ford's plans was made during the most recent presidential campaign and created dissent among the candidates. One can- didate called for increased tariffs and penalties for U.S. firms, like Ford, that choose to relocate manufacturing to foreign markets to lower costs. Ford has reacted with a vigorous de- fense of its business practices. As per CEO Mark Fields, "more than 80 percent of our North American investment annually is in the U.S., and 97 percent of our North American engineering is conducted in the U.S." Dennis Williams, President of the United Auto Work- ers (UAW) union, is another voice of dissent to the move.