MCALLEN, Texas — Dozens of Mattel Inc. employees were on their way to another day of work making Power Wheels in Mexico's industrial heartland when gunshots erupted around them and a grenade ripped into one of their buses, killing one worker and wounding five.
The battle between drug traffickers and the army near the city of Monterrey last week was the sort of violence that is frightening U.S. companies away from new investments south of the border, where organized criminals are increasingly turning to kidnappings, extortion and cargo thefts despite a government offensive against drug cartels.
As a result, only half of the U.S. firms surveyed recently by the U.S.-Mexico Chamber of Commerce said they would go ahead with new investment plans in Mexico and several companies, including Whirlpool Corp., have recently announced they would put new factories elsewhere citing concerns about safety.
Story here.
Discuss. One out of 10 companies reported kidnappings and 60 percent said their employees were beaten or threatened in 2010, according to the U.S.-Mexico Chamber of Commerce.
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