Page 16 - MIN SJA 6 APRIL 2016
P. 16
U.S. NEWS A7
Wednesday 6 April 2016
Ford to build small-car factory
in Mexico, adding 2,800 jobs
TOM KRISHER 1994 North American Free This photo shows a sign designed to attract employment seekers that lines a booth for job recruit-
AP Auto Writer Trade Agreement, tax im- ers at a Job Fair in Pittsburgh. On Tuesday, April 5, 2016, the Labor Department reported on job
DETROIT (AP) — Ford Mo- ports and punish U.S. com- openings and labor turnover for February.
tor Co. plans to build a panies including Ford.
new $1.6 billion auto as- Trump said in a state- (AP Photo/Keith Srakocic)
sembly plant in Mexico, ment that transactions
creating about 2,800 jobs like Ford’s will not hap- US Financial Front:
and shifting small-car pro- pen when he is president. American hiring reaches nine-year high
duction from the U.S. at “Cheap goods are not
a time when moving jobs cheap when you con- C. S. RUGABER calculates a net total of at just a 1 percent annual
south of the border has sider the cost of lower AP Economics Writer job gains after subtracting rate or less in the first three
become a major issue in wages and higher unem- WASHINGTON (AP) — U.S. those who quit, retired or months of this year, after a
the U.S. presidential cam- ployment,” he said, add- hiring jumped to a nine- were laid off. tepid 1.4 percent increase
paign. ing that he would enforce year high in February, a sign The latest jobs report in last year’s fourth quarter.
The company announced trade rules and reduce of robust business demand showed that employers But employers’ willingness
the plant in the San Luis Po- the incentive for compa- for new workers, while the added a solid 215,000 po- to fill jobs suggests they see
tosi state Tuesday without nies to send business else- number of open positions sitions in March, while the the slowdown as mostly
saying specifically what where. slipped. unemployment rate rose to temporary.
cars it will build there. But In response, Ford high- The Labor Department re- 5 percent from 4.9 percent. Cheaper gas and mod-
the United Auto Workers lighted its investments in ported Tuesday that 5.4 Yet the increase in the rate est wage gains are putting
union has said Ford plans the U.S., saying that the million people found jobs, occurred mostly for positive more money in Americans’
to shift production of the company spends more a 5.8 percent jump from reasons: More Americans pockets, which could boost
Focus compact and C- than 80 percent of its January and the most since began hunting for jobs, spending and growth in the
Max small gas-electric hy- capital in the U.S. and has November 2006. More though not all were imme- coming months.
brid from suburban Detroit committed to spending Americans also quit their diately hired. That pushed The number of people
to Mexico, where the cars another $8 billion to $9 bil- jobs. Both figures point to up the number of unem- quitting their jobs rose to
can be made at lower lion in the next four years. a healthier, more dynamic ployed, despite the job a healthy 2.95 million in
cost and more profitably. “Since 2011 we’ve invest- labor market. gain. February, though that re-
The UAW’s new four-year ed over $10 billion in our Businesses have been re- Employers are adding jobs mained just below Decem-
contract with Ford, signed facilities. We’ve hired over luctant to accelerate hir- at a steady clip, even as ber’s recent peak.
last year, guarantees new 25,000 people” in the U.S., ing for much of the nearly the economy has shown Workers typically quit when
vehicles for the Wayne, CEO Mark Fields said last seven year old recovery. some signs of slowing. they have another job
Michigan, assembly plant month at the New York But the raw hiring numbers Americans barely in- lined up, usually for higher
and a $700 million invest- auto show. have now returned to pre- creased their spending pay. So more quitting is
ment that preserves the Auto and other manufac- recession levels. That sug- in February for the third generally a good sign for
plant’s 3,924 jobs. Union turing jobs having been gests businesses are more month in a row, holding the economy.
members have said they moving south for years. confident about the econ- back growth and pointing Federal Reserve Chair Ja-
expect the factory to Mexican auto produc- omy’s future. to ongoing caution despite net Yellen monitors the hir-
get a new version of the tion more than doubled Tuesday’s figures track to- the job gains. ing and quits figures closely
Ranger small pickup and in the past decade, and tal hiring. The monthly jobs Many analysts now expect to gauge the job market’s
a new small SUV called the consulting firm IHS Au- report released last week the economy will expand health.
the Bronco. tomotive expects it to rise
The announcement came another 50 percent to just
on the day of the key Wis- under 5 million vehicles by
consin primary and drew 2022. U.S. production is ex-
a strong response from pected to increase only 3
Republican front-runner percent, to 12.2 million ve-
Donald Trump, who called hicles, in the next 7 years.
Ford’s move “an abso- Joe Hinrichs, Ford’s presi-
lute disgrace.” Trump has dent of the Americas, said
railed about corporate Ford is a global company
America moving jobs to that builds cars where it
Mexico to take advan- makes the most finan-
tage of what he calls a cial sense. He confirmed
lopsided trade deal and new plant would build
has vowed to rewrite the small cars starting in 2018.
