Ford backs down on Mexico Factory plans - Trump Tweets
January 04, 2017 – Trump’s first tweet today was about Ford scrapping their plans to build a $1.5 billion automotive manufacturing plant in San Luis Potosi, Mexico. The plan was to produce Ford Focus, and possibly other compact cars, in this plant. Off course, the Mexican government was looking forward to see this investment come into their country, but to their disappointment, Ford Motors today announced the cancellation of this plan. It is no secret that Trump is a Pro-Business man; he wants companies to operate and hire people in United States of America instead of moving jobs to some other country.
It looks like Ford back downed under pressure. Trump is sending a clear message to all business owners. The message is that if you want to sell something in USA, you better make it in USA too. Today, Trump sent a message to another giant motor company GM [General Motors.] He said that if GM wants to sell cars in USA, then it could either produce them in USA or pay big border tax. If Trump actually imposes such big border taxes, then that will increase the vehicle price to an unreasonable level; GM won’t be able to sell such high priced cars in USA! So basically, Trump is going to take such actions to make companies start producing products in the country.
Ford Motor Company, founded more than 100 years ago, is the second largest US automotive company. In 2015, Ford posted a total revenue of approximately 150 Billion US Dollars! More than 200,000 employees are working for Ford. In today’s announcement, Ford broke the news about creating 700 new jobs. Instead of building the proposed plant in Mexico, Ford is now going to invest more than $700 million in its current plant in Michigan. It is safe to assume that the said 700 new jobs are coming to the State of Michigan. The unemployment rate in the State of Michigan is currently at 5.4%, much higher than USA’s average unemployment rate, which currently is standing at a record level of 4.9%. These 700 new jobs is good news for Michigan.
Now you would assume that Ford is investing $700 million in their Michigan plant [possibly on upgrades and improvements] so that they can start producing Ford Focus in it, but that is not the case here. Ford announcement focused more on the part where they aren’t making the new plant in Mexico and also on creating 700 new jobs, but they quietly stated that they are still going to produce Ford Focus in Mexico. Ford has an existing motor production plant in Hermosillo, Mexico; Ford Focus will be produced in this plant. So, I don’t really understand what all this ruckus is about; I mean, they are still going to produce Ford Focus in Mexico so how is this a win for Trump? What will Ford do about the Big-Border taxes that Trump is threatening to impose?