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Essay / The Ford Motor Company Mexico Case Study
The strategic planning division sees some negatives, but we also see some positives that would affect us if we were to leave. The automaker Ford would be leaving a country with a larger and narrow market to sell our cars to that wouldn't be so expensive, but we wouldn't have to worry about how much the auto decree is going to eat into our profits in Mexico . . We would also reduce costs because we would not have to import cars to Mexico, but the Ford car company would lose all the profits from the sale of these cars. One thing we could do would be to open a factory in Mexico to get around the auto executive order due to high tariffs on foreign imports of finished automobiles. This would mean we would have to hire more workers domestically, which would cost Ford more, but the labor cost would be cheaper than in the United States. But we would have to spend money to make sure these factories were up to industry standards, because it could cost more if we put non-acceptable cars on the market. This would also have positive effects, because we would have a factory and a foothold in the Mexican market. After reviewing everything and taking into consideration the future of the Ford automobile company, we recommend staying in the country because leaving Mexico would bring more negatives than positives. We think this way because we are considering opening a factory in Mexico to bring more positives than leaving the country, as for example we would be leaving a major market that could exclude us if we left the country to circumvent the automobile decree. This would also remain true to Ford's global strategy of expanding to meet demand across the world.