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Old January 3rd, 2017 #1
RickHolland
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Default Chided by Trump, Ford scraps Mexico factory, adds Michigan jobs

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Ford Motor Co (F.N) on Tuesday scrapped a planned Mexican car factory and added 700 jobs in Michigan following criticism by Donald Trump, as the U.S. president-elect turned his attention toward rival General Motors Co (GM.N) with the threat of a "big border tax" over compact cars made in Mexico.

Ford CEO Mark Fields called the move "a vote of confidence" in Trump, but primarily a response to a decline in North American demand for small cars like those that would have been made at the Mexican plant. He said Ford would have made the same decision even if Trump had not been elected.

Ford will cancel plans unveiled in April to spend $1.6 billion to build the new plant in San Luis Potosi, Mexico, a project Trump urged the automaker to abandon and called an "absolute disgrace" during the election campaign.

The No. 2 U.S. automaker also said it would invest $700 million to expand the Flat Rock, Michigan factory and would make new electric, hybrid and autonomous vehicles there.

Trump's efforts to browbeat the U.S. car industry show he may go further than other modern presidents to try to influence corporate decisions, especially those related to trade and investment.

In a Twitter post hours before Ford's announcement, Trump wrote, "General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!" GM, the largest U.S. automaker, said making some of the Cruze cars in the plant in Coahuila, Mexico was part of its strategy to serve global customers, not sell those vehicles in the United States.

Trump's GM tweet was his latest broadside aimed at an American company over jobs, imports and costs even before he takes office on Jan. 20.

Mexico's government said it regrets Ford's decision and has ensured that the company will reimburse San Luis Potosi state for any costs associated with the investment.
Read more: http://www.reuters.com/article/us-us...-idUSKBN14N1T0



Ford scraps plan for $1.6 billion plant in Mexico after Trump criticism

Quote:
Ford Motor Co (F.N) said Tuesday it will cancel a planned $1.6 billion factory in Mexico and invest $700 million at a Michigan factory, after President-elect Donald Trump had harshly criticized the Mexico investment plan.

The second largest U.S. automaker said it would build new electric, hybrid and autonomous vehicles at the Flat Rock, Michigan plant and add 700 jobs.

Ford Chief Executive Mark Fields said the decision to cancel the new Mexico factory was the result of sagging demand for small cars in North America and not because Trump was elected president. He told Fox Business that the automaker would have made the same decision even if Trump had not been elected.

"There was no quid pro quo because there was no negotiation" with Trump over the decision to cancel the plant, Fields said.

Fields told reporters the decision related to the need to "fully utilize capacity at existing facilities" amid declining sales of small and medium sized cars such as the Focus and Fusion.

Fields also endorsed "pro growth" tax and regulatory policies advocated by Trump and the Republican-led Congress. "This is a vote of confidence for President-Elect Trump and some of the policies he may be pursuing," Fields said.

Trump repeatedly said during the election campaign that if elected he would not allow Ford to open the new plant in Mexico, which he called an "absolute disgrace" and would slap hefty tariffs taxes on imported Ford vehicles.

Ford executive chairman Bill Ford Jr. told reporters he spoke with Trump to notify him of the decision. The company said the decision was influenced by Trump's policy goals such as lowering taxes and regulations but that there were no negotiations over the decision announced on Tuesday.

By contrast, Trump's team held talks with United Technologies Corp (UTX.N) in November before the company agreed to keep about 800 jobs at its Carrier air conditioning unit in Indiana out of 2,100 set to go to Mexico. Trump has also held high profile meetings with the chief executives of Boeing and Lockheed Martin to talk about the cost of military contracts.

Also on Tuesday, Trump threatened to impose a "big border tax" on General Motors Co (GM.N) for making some of its Chevrolet Cruze cars in Mexico.

The New York businessman, who has vowed to bring back American jobs that have been outsourced overseas and be tough on illegal immigration from Mexico, takes office on Jan. 20.

Fields said Ford will build a battery electric SUV with a 300-mile driving range at the Michigan plant by 2020 -- taking on companies like Tesla Motors Inc (TSLA.O), Volkswagen AG (VOWG_p.DE) and GM -- and will launch production there by 2021 of a fully autonomous vehicle without a steering wheel or a brake pedal for use in ride services fleets.

Ford also plans new hybrid versions of its F-150 pickup truck, Mustang and police vehicles by 2020 as the auto industry faces rising fuel efficiency mandates.

Ford will add 700 jobs at the Flat Rock plant, Fields said, to cheers from union workers gathered at the factory for the announcement.
http://www.reuters.com/article/us-fo...-idUSKBN14N1EO
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Old January 3rd, 2017 #2
Robbie Key
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Trump is in the cahoots with Big Business.
 
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