Quote:
Originally Posted by burn_this_city
Ford announced they cancelled spending $700M in Mexico and instead are investing in Michigan.
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They're cancelling a $1.6b new plant in Mexico. They're still shifting production of the Focus to Mexico from the US, but are shifting it to an existing plant instead of a new one. And it sounds like that's in response to declining sales not making a new factory worth it:
'Ford Chief Executive Mark Fields said the decision to cancel the new Mexico factory was in part 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.'
Also sounds like the $700m is to tool up for new more advanced products:
'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.'
Doesn't hurt to spin it to sound like it's in support of Trump, Ford is probably salivating at what a new Republican tax scheme will do to their pockets.
http://www.reuters.com/article/us-fo...-idUSKBN14N1EO
Like with the Congress ethics thing, even the "anti-Trump" media still give Trump the headlines he wants which make it seem like he's 100% responsible for effects that happen after he says or tweets something.
Trump also tweeted today about GM bringing in the Cruz in tax free from Mexico, and he's mostly wrong again as the sedan Cruz which is what sells in the US
is made in the US. The hatchback which hardly sells in the US (2.4% of Cruz sales in the US are Mexican hatchbacks) but is more an international product is made in Mexico. If Trump imposed a duty then GM would simply stop offering the hatchback in the US. They're not going to move an entire plant to the US to sell a few thousand more cars in the US while making the product more expensive for the international market.
http://www.cnbc.com/2017/01/03/gm-fi...in-the-us.html