Will Mattel's latest recalls slow down corporate flight to countries with cheap labor?

Question

This could prove to be more expensive for Mattel than if they had not moved to Mexico and to China. Bring the jobs back to Americans, Barbie.

Oh man...I was hoping for different answers... but I suppose you are all correct. It's like the corporations are making the USA a "bedroom community", with less industry.

Answer 1

What I think is troubling is all of the problems we have been having with Chinese imports over the last couple of years, from tainted food and toothpaste, to children't toys made with lead paint. And, I have to believe that the problems found are just the tip of this giant iceberg of inferior/illegal/poisonous products that the sweathouses in China are churning out for Americans to consume.

The problem seems to be corruption and lack of proper safety controls on the Chinese side. And, as long as they make money hand over fist off us us, they are going to take the risk and continue business as usual.

Unfortunately, I also think the greedy SOBs in the US are also going to overlook these problems, take the one-time hit of a recall, and also continue business as usual. The American consumer be damned.

Answer 2

This seems possible to me, though one never knows how greedy a corporation may be...or who really owns/makes decisions for said corporation!

It's true this lead-paint recall will cost Mattel a bundle, and hopefully have them think twice in the future about building new factories abroad. I just fear that because the old factories are already in place, Mattel will want to use them again, after a good dusting. They might sell them, but I don't know if Chinese and Mexican buyers want factories for toy production. Maybe...

I did read that the Chinese CEO where the toys were made has killed himself... very sad for his family ...and a 'just-possible' deterrent to the Chinese welcoming Mattel back. No one wants that kind of grief and shame. (Though $$$ tempt...)

Barbie and all the Fischer-Price toys should come home... but then again, who will sit all day in a smelly factory painting eyelashes on dolls? Do you think the average American will? Mattel will surely have to up their ante on pay if they move home, and probably by a significant amount.

Hope it has to happen, personally. The jobs are needed here, as long as workers are safe (OSHA) and can make enough to live on.

Answer 3

Doubt it, but you may find out that other third world countries are going to get some of the work. Diversification is going to be a word used a lot .
I 'll also bet that heads will start rolling when situations like this arise at other import companies. With Matell someone dropped the ball and didn't do all their checks. Due Diligence wasn't excercised.

Answer 4

Mattel cannot be outsourced anymore, they do crap jobs. If they worked in America, they would pay taxes like everyone else and make BETTER products.

Answer 5

I do doubt that. But, it may companies may diversify to multiple countries with cheap labor. Too much dependence on China is unhealthy.

Answer 6

Probably not, I heard on NPR that the recall previoius to this one that Matell had to deal with cost them $30,000,000 and yet they did not pull out of China after that !

Answer 7

Not a chance. The flight will continue because in the long run they will make more money.

Answer 8

Absolutely not. This is merely an aberration. There's too much profit to be made.

Bring it back to the U.S.? Not a chance.

Answer 9

I don't know but China should stop making those. China wants to kill us. It's nuts.

Answer 10

it may very well bankrupt mattel