Ford
Cancels $1.6 billion Mexican Plant; Announces $700 million Investment in
Michigan, by Irina Ivanova, 1/3/17 Moneywatch
U.S. automaker Ford announced
Tuesday it is canceling a planned $1.6 billion production facility in Mexico,
while also investing $700 million in expanding a plant in Michigan to build
electric and self-driving cars. The investment in the Flat Rock Assembly Plant,
south of Detroit, would create 700 direct new jobs, the company said in a press
release.
Ford CEO Mark Fields told CBSN the
main reason for the change of plans was a market decline in the demand for
small cars. “We just don’t need the capacity anymore,” he said. Fields did,
however, say Ford sees a “more positive” U.S. manufacturing environment under
President-elect Donald Trump.
“We look at a lot of different
factors,” he said. “We do what’s right for the business, but one of the factors
we look at is what we expect to be a more positive manufacturing business
environment under President-elect Trump, and also looking at the pro-growth
policies and reforms, both tax and regulatory reforms, that he’s been talking
about. It is a consideration, and it is a vote of confidence that he’ll be able
to deliver on those things.”
Fields confirmed that he spoke to
Trump and Vice President-elect Mike Pence, who he said were “very pleased” at
the announcement. Speaking earlier with CNN, however, he emphasized that the
announcement was unrelated to Trump’s tweet Tuesday morning lambasting General Motors for supposedly importing Mexico-made cars.
Trump accused GM of shipping Chevrolet
Cruze cars “tax free across the border.” GM responded, however, that only
a small portion of
the Cruze cars sold in the U.S. were made in Mexico. Most are manufactured in
Lordstown, Ohio.
Comments
I looks
like large auto manufacturing companies are factoring in the 20% reduction in US
corporate tax and avoiding the 35% tax on imports for sale in the US.
American
electronics should be the next big sector to make their moves. American
consumers are sick of the “disposable” electronics scam.
Trump’s
policy changes are allowing us to go back to the model making it where you sell
it.
Norb
Leahy, Dunwoody GA Tea Party Leader
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