Ford Scraps $1.6bn Mexico Plan
Trump has heavily criticized Ford’s plan of building a $1.6 billion plant in Mexico, and today Ford CEO Mark Fields said the company canceled the plan. They are instead going to invest $700 million in their plants located in Flat Rock, Michigan to increase production of electric and hybrid cars.
Ford officials said that the revised plans were tied to market conditions that have depressed small-car sales, and that they did not consult with the incoming Trump administration before making the decision. They did, though, tell Mr. Trump about the change just before the announcement. And on Tuesday, Mr. Fields made clear that Mr. Trump’s policies were playing a role in the company’s thinking. He added in an interview that the president-elect’s emphasis on tax changes and cutting regulations should have an overall positive effect on automakers such as Ford.
The way I see it, Ford receives cuts in corporate taxes and environmental and labor regulations worth much more, while Trump gets headlines about saving a few thousand manufacturing jobs that will most likely vanish in a few years anyways because of automation. What's your take?
Voluptas nemo vel quos. Voluptas consequatur reiciendis ut fugit occaecati excepturi velit harum. Eos beatae quas earum dolor dolor numquam. Dolore non aperiam perferendis sunt odit itaque. Aut fugit vel non cupiditate quo enim. Quos iste mollitia ut inventore cupiditate repellendus magni deserunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...