Toyota to spend $1 billion on new factory in Mexico. | Page 2 | GTAMotorcycle.com

Toyota to spend $1 billion on new factory in Mexico.

This is a common practice prevalent in many corporate companies. They shift or open new bases for cost cutting measures & to increase their profit by exploiting loophole policies of the regional government. This mainly happens with developed countries where awareness of labor law is not so much. China, India, Bangladesh, Vietnam are many such countries which are on the Radar of many business houses now adding Maxico also.
 
backmarkerducati said:
I disagree, as noted above this is not just an Ontario Liberal problem.

The are many ways to control costs and to make the environment prime for manufacturing.

If we raise corperate taxes but at the same time provide aggressive tax breaks per employee, we encourage hiring. In the end Ontario is a big market for selling so smart taxation will pay big benefits.

Hydro rates are likely about 10% of the cost, lowering these rates lowers cost.

Environmental laws need to be relaxed intelligently, lowering cost.

Employment laws need to be relaxed, again intelligenctly. Less redtape is key.

A low dollar is ideal, IMO right about where we are now is ideal. We have been too high for too long.

I can go on for pages.... the important part is to encourage manufacturing through policy and taxation. Mexico has its issues like security.... low wages are just a small part of the equation.
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No matter what we do here we will never have cheaper labor, less taxes, looser regulations, cheaper hydro, less employment laws than Mexico. Do Ontario laborers want to race to the bottom of pay and standards? This is the consequence of free trade with a partner offering cheaper manufacturing. Teriffs making it more expensive to important that build local are the only way to combat companies moving to save a buck. Just look at the Kellogs plant in London. When teriffs used to exist most American companies had Canadian factories to avoid these fees. Once lifted it becomes cheaper to import the product from whatever country has cheapest manufacturing and close down local production.

Low level manufacturing is gone to China, India and Mexico. No amount of Ontario government measures short of paying companies to operate here will make a difference.
 
Manufacturers must be laughing their arses off just before they leave. With the new carbon capture tax& all that crap, it's no secret they will take their ball & go home
 
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