Originally Posted by Grapesoda

The reason is Mexico has non-tariff agreements with 40 plus countries. This allows all products made in Mexico to be sold in 40 markets with no tariff and it allows Mexico to bring in Parts with no triff from countries 40 countries. Car companies a $1,500 per unit savings just on Parts alone. However the cheaper labor costs are offset by the lack of Transportation Network we have in United States. The real profits coming from the lack of tariffs