by James Stayer

Created on: February 19, 2007   Last Updated: December 07, 2009

This issue has heated up lately with the news that more international companies are moving production here to the United States of America, while several American based companies are either closing doors completely or downsizing dramatically. The issue at hand that is causing most of the debate and concern is the gas mileage and crash test safety, along with the longterm quality concerns. With the impact that most American based companies have felt from customers going to cars produced by companies with international headquarters, even though the cars may be built in the United States of America, most American based car manufacturers either have already addressed the issues of quality and safety or are starting a rapid improvement plan.

As the American car companies begin to increase the safety features and efficiency of the gas motors, and also enter into the electric car production, the demand for cars will begin to even out. As the wages start to match those of international based companies - I find it surprising that German car manufacturing companies are finding it economy feasible to build vehicles here in the United States, while most companies in the United States of America are always so quick to assume that the best labor in terms of cost is south of the border. Although the wages in Mexico maybe small compared to the wages for a worker based in Michigan, the cost of logistics and quality have to be taken into effect. Once the cost of poor quality is added to the wages of the employee in Mexico, the cost of assembly starts to near that of a vehicle built in the United States of America. Then when you add in the cost and time of logistics and customs, the drastic savings that caught managements eye and fooled them into moving assembly to Mexico, has vanished.

The fact that international car manufacturing companies are building manufacturing plants here in the United States of America should be an indication to the American based companies to keep the labor pool here in the United States. This is undoubtably one reason that people here will overlook a comparable model, just knowing that the American based company sent the work to produce that model south for cost reasons, but the customer still has to pay the same price. It becomes a matter of national pride, I would rather buy the model that is built by my countryman out of two equal models.

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