Category Archives: Manufacturing

Why auto makers are building factories in Mexico, not the U.S.

The wave of investment has turned Mexico into the world’s seventh-largest producer of cars.
The wave of investment has turned Mexico into the world’s seventh-largest producer of cars.

By Dudley Althaus and William Boston / Wall Street Journal

A barren patch in the rugged hills along the Tennessee River is a sign of how Mexico has accelerated past the U.S. South in the global competition for auto investment.

The tract of cleared woodland lies alongside a factory Volkswagen set out to build in 2008. But four years later, when Audi decided to move global production of its Q5 SUV to North America, the prize went to Mexico.

“Mexico had more than 40 different free-trade agreements,” said Rupert Stadler, Audi’s chief executive. The pacts give exporters from Mexico duty-free access to markets that contain 60% of the world’s economic output.

While the bulk of Mexico’s auto exports go to the U.S. and Canada, its partners in the North American Free Trade Agreement, auto makers increasingly are turning to Mexico as a platform for selling world-wide.

http://www.wsj.com/articles/why-auto-makers-are-building-new-factories-in-mexico-not-the-u-s-1426645802

Mexico rescues 129 garment workers “abused” by South Korean firm

Workers told prosecutors that they were "victims of physical and sexual abuse, as well as threats, psychological harm and grueling work days.”
Workers told prosecutors that they were “victims of physical and sexual abuse, as well as threats, psychological harm and grueling work days.”

By Yemeli Ortega / AFP

Mexican authorities have rescued 129 workers, including six children, who said they were exploited and physically and sexually abused at a garment factory run by South Koreans.

Four South Korean nationals have been handed over to prosecutors in the western state of Jalisco after workers identified them as the owners or managers of the company named Yes International, the National Migration Institute (INM) said.

Authorities raided the company in the town of Zapopan on Wednesday after receiving an anonymous tip, INM coordinator Ardelio Vargas Fosado told reporters, describing the South Koreans as a “gang of suspected human traffickers.”

http://news.yahoo.com/mexico-rescues-129-workers-abused-korean-firm-212651990.html