Donald Trump isn’t even president of the United States yet and he is already adding several big public relations wins under his belt. The latest PR win comes from Ford, which announced it is scrapping plans to build a plant in Mexico and will instead use those funds for a plant in Michigan.
Ford announced on Tuesday that it will cancel a $1.6 billion plant that was going to be constructed in Mexico. Instead, the automaker will spend $700 million on an assembly plant in Michigan, which will result in the creation of 700 jobs.
What happened exactly? According to Ford CEO Mark Fields, the company felt confident in Trump’s “pro-growth policies.”
“We are encouraged by the pro-growth policies that President-elect Trump and the new Congress have indicated they will pursue,” Fields said in a statement. “And we believe that these tax and regulatory reforms are critically important to boost U.S. competitiveness, and of course drive a resurgence in American manufacturing and high-tech innovation.”
It isn’t all sunshine and lollipops for Trumpsters, though. Ford confirmed that it will still shift production of its Focus compact to Mexico at a current plant in Hermosillo. The Ford Focus is currently manufactured in Wayne, Michigan.
The Flat Rock plant will now produce gas-electric hybrid versions of the F-150 pickup truck and the Mustang sports car and a new batter-powered sports utility vehicle.
Ford shares surged about three percent on the news.
This is another company that has decided to stay in the U.S. since Trump’s election. Who knows if Ford will receive some kind of tax incentive or if it will raise the price of its cars? Carrier already announced that it will raise prices by five percent in 2017.
With Ford out of the way, it should be interesting to see how Trump handles the current tumultuous relationship with General Motors over the next little while. As a matter of fact, it should be compelling to witness trade affairs over the next four years.
Let this be a warning to other corporations wanting to move operations to a foreign jurisdiction:
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!
— Donald J. Trump (@realDonaldTrump) January 3, 2017
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