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Audi picks Mexico over US to open new factory

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    U.S. News & World Report chairman Mort Zuckerman weighs in

  • Duration 4:37
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How do you fix in Mexico to open up shop choosing to build a factory NN jobs in the -- -- with drug -- -- a deadly violence episode.

What message should this be sending to Washington.

-- -- -- US news and world report more welcomed the program.

Thank you -- and is now and he goes to Mexico builds a plant that not America goes to Mexico.

The man who runs out he says Mexico has good infrastructure and competitive cost.

Doesn't America have those things to wanted to go then on here.

Well the answer is no we don't have either good enough infrastructure and we're certainly not competitive on cost we have lost six million.

Blue collar industrial jobs over the last decade.

Many of them to China many of them to India because we find that they can manufacture good product at much lower costs particularly if they have a high engineering component.

This is that fundamental -- with between.

The electronics and the automation of manufacturing.

And the fact of lower wage rates we are going to be an -- and -- competitive position in manufacturing for a long time to -- which we connect.

-- match -- manufacturing costs that you and I look at this -- six dollars and 23 cents Allan mine action wages in Mexico 34 dollars and 74 cents in the united star -- America we can't match that that's it -- there's no way he -- can get Al wage costs down about slow we can't that's exactly why I think in strategic terms we are in a very uncompetitive position in terms of manufacturing.

The only where place where we're gonna be competitive in manufacturing is high value added goods and for those we have to have the right kind of employees who are engineering.

Talented technical people who can do that.

We are the number one player in the world in terms of the new high tech world why is that because we have a very innovative high tech component in terms of -- talent.

And that is something that we've got to build on.

Do you think that president Obama's push to unionize nation.

In manufacturing across America is that a -- area.

To the likes of Saudi coming via under the threat that may -- at some point in the future that be forced to take a -- is that a problem.

Now of course it's a problem I mean in the sense that it produces the very higher costs that you just referred to and makes it impossible for us to be competitive.

So this is something we're gonna have to think through very carefully.

It's just like what happened in agriculture in the 1930s.

When we had all of these new tractors in machines and finishing machines and a bit like that they make people irrelevance we now have.

A whole different kind of manufacturing process in which we need money fewer people what is more -- come competition internationally.

Much tougher it is a very serious issue because a lot of people who have lost their jobs we've lost six million industrial jobs just in the last half dozen years.

Those jobs they're not -- becoming -- that's a pretty bleak outlook it is simply saying good bye to these jobs -- not gonna come back because that kind of manufacturer will no longer be at home in America that that it's -- that is a huge problem that we have to face and we have to find a way to deal with so what -- we have to you don't belong -- and President Obama do about that.

Well number one of course he wouldn't have to do something to instantly and still had a sense of confidence.

In America and American business which he has not -- it's quite the -- quite the opposite but beyond that we have to do a much bigger job in terms of our infrastructure.

We have to change the tax code we have to improve the engineering technical -- -- we have to increase the number of H one B visas.

Which takes a lot of engineers on the order to hold 200000 engineers.

That's the kind of manufacturing and we need here because amongst other things it's not just the way -- jumpstart.

When these plants are built people learn a lot about scaling up in terms of manufacturing.

That's scaling up is now taking place abroad not here and we're losing all the things you learn when you scale up and the innovation that goes with -- -- -- big supporter President Obama what you.

-- I made many mistakes in my life you know.

It's -- you certainly you worry supporter of Iowa Bubba and I wasn't about to -- no mistake I think he has been a disappointment as the president of the United States without question you think Mitt Romney would be a better president I don't know enough about him I suspect on the basis of what I know we'll have to see how the campaign goes.

Before we come to -- do you think but I -- Oprah either candidate.

Could have -- kind of effect on America and manufacturing in America that you want to see what I would say by far and it's not even close Mitt Romney whom I have known for many many years has a much deeper and broader understanding of how this economy works how the American economy works and what we need to be effective.

And competitive.

-- by far greater understanding that that President Obama as he came out of the university.

That is not exactly the background where you really understand -- things -- you know.

Mitt Romney was involved in a whole array of businesses and has learned a lot about that.

Wolves are coming thanks for joining us -- what your vision -- very welcome.

Them.

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