Tuesday, May 6, 2008

Ford in Brazil. How will that affect brand image in the US?

If you click on this link, you will see a video shot last year of a new Ford plant in Brazil.

One look at this and you will instantly be able to tell what is wrong with the domestic manufacturing plants of US auto makers. It pointedly shows why there are problems building auto plant in the US and why more will go off shore. U.S, unions have fought this kind of automation for years for fear of losing jobs and now ironically they are losing jobs because they haven't automated.

Ford and GM are in an impossible spot with their employees in the U.S. The theory is that high wages by world standards and rising health care are squeezing all the profits from these companies. But then there is Toyota building more plants in the U.S. and showing a nice profit to boot. Maybe Toyota will begin to advertise, "Made in America" while Ford and GM go south of the border just like their profits. Toyota should play up the fact that they are increasing jobs in America as a part of their marketing strategy.