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...reason GM Mexico has remained profitable while mounting losses have pushed the parent company's U.S., Canadian and European operations to the brink of disaster boils down to the lower cost of doing business in Mexico. GM and other automakers, including Ford and Chrysler, have managed to keep the cost of production south of the California and Texas borders at Third World levels, owing largely to Mexico's weak unions...

Author: /time Magazine | Title: Canada Spends Big to Save GM, So Why Not Mexico? | 7/3/2009 | See Source »

...Mexico produced in 2008 were exported throughout the Americas and the Middle East. But the vast majority - 68% of the total - ended up being sold in the U.S. market. (Historically GM has profited by importing vehicles into its home market from Canada and Mexico by taking advantage of lower fixed costs...

Author: /time Magazine | Title: Canada Spends Big to Save GM, So Why Not Mexico? | 7/3/2009 | See Source »

...Most of that increased output will end up in the U.S., but GM Canada may ultimately pay the highest price for the shift in production. The reason is that, going forward, slashing output in Oshawa - its main production facility, located east of Toronto - comes at a much lower political price than doing the same in the U.S., where the U.S. Treasury and United Auto Workers control nearly...

Author: /time Magazine | Title: Canada Spends Big to Save GM, So Why Not Mexico? | 7/3/2009 | See Source »

...high sales taxes and rates for corporate income, but very low property taxes. State income taxes are very progressive, with a large proportion of revenue comes from households earning more than $100,000, as well as from taxes on stock options and capital gains. Low-income households, meanwhile, face lower tax rates that in most other states. This tax system, says Steve Peace, director of finance under Gov. Gray Davis, "worked in a highly leveraged, supercharged economy. Those days are gone...

Author: /time Magazine | Title: California's Budget Crisis: Is There a Way Out? | 7/2/2009 | See Source »

...auction, analysts warned that Iraq's plans for attracting the investment necessary to crank up its output were overly optimistic. Iraq plans to retain ownership of its oil, but make long-term agreements with foreign companies to run the operations. But Oil Minister Hussein Shahristani demanded that oil companies lower their profit expectations, offering to pay them $2 for every barrel pumped in Iraq rather than the $4-a-barrel rate sought by oil executives. Chevron, which had negotiated for a year to develop Iraq's second-biggest field, West Qurna, pulled out of the deal on Tuesday, saying...

Author: /time Magazine | Title: The Reasons Behind Big Oil Declining Iraq's Riches | 7/2/2009 | See Source »

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