Donald Trump, Economy, Issues

Ford cancels Mexico plant, will invest $700 million in Michigan

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Photo: Ford Motor Company/Flickr (cc by-nc 2.0)

Photo: Ford Motor Company/Flickr (cc by-nc 2.0)

The American auto industry isn’t what it once was, but it looks like Donald Trump’s presidency could change that. Ford Motors CEO Mark Fields announced Tuesday that they have canceled plans to build a new plant in Mexico. Instead, they will invest $700 million to expand an existing plant in Michigan, creating 700 jobs in the process.

Fields called the decision a “vote of confidence” in the pro-business Trump administration:

“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.

The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gas-powered vehicles within the next 15 years.

[…]

Last year, Ford announced it would invest $1.6 billion in Mexico to transfer production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will instead expand its plant in Michigan.

Prior to the announcement, Trump threatened to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S. However, Fields said that Ford’s decision to cancel the Mexico plant was “done independently” of Trump.

  • RLTMLT

    Wise decision, I can’t remember the last time I saw a so-called American Built Car on the road ! I’ve been giving my business to the Koreans who build a far superior machine for the money ! No longer bothered by the Union claims that people like me are taking jobs away from American workers, many of these foreign cars are assembled in non-union factories in Right-to-Work states in this country to avoid the high import duty put on finished foreign built goods !

    • Robert

      RLTMLT
      It think it is dismal when the only car made in America not assembled in America is Toyota Camry and next year the Second Car made in America is a Subaru, and they do not get the tax incentives the American Companies get from the State or Federal, and still make huge profits enough to pay top wages for their workers, and no union, by worker choice.
      HAVE A GOOD DAY

      • mike74

        the unions have destroyed the American work force and the ability for company’s to compete in a open market

        • Robert

          mike74
          The Union got in because of the companies exploiting the worker and making bad conditions to work in. Then he union for greed had the workers slow down so that more had to be hired so more union dues to the Union The point is there was wrong on the factor side which let to the Union getting involved and then the union was wrong for what they did. The Companies who left here left for sheer greed, and I can understand their greed, in the 1960s hostile takeover laws were passed by The Republicans in power at the time, Pickins from Texas at the time called a Corporate raider, If you have the backing you can bid 10% over the stock price and after a review by the Federal that it does not create a monopoly you own the company unless the owners can get enough money to over bid you fo 51% of the stock., In 1960 there were 1536 oil companies in the USA today there are 3 major oil companies. Get rid of your competition and make more money, yet competition in this country is what made the country what it was before companies moved to cheap labor to make more money. If anyone thinks they will give up that huge difference in labor costs I do not think they will, yet foreign firms operate here under the same laws and without the tax breaks that American companies get and make huge profit and their workers do not want Union .
          HAVE A GOOD DAY

          • RLTMLT

            More a social club than a meaningful force for American Workers ! Currently 7% of American jobs are unionized and most of these are low end housekeeping jobs in major hotel chains, the union movement in this country is essentially on Life Support !

          • Robert

            RLTMLT
            I think your post hits it where it is greed at all points it ts just that most Americans have this greed for more money, maybe it is a natural,instinct maybe i should do some medical research to better my knowledge of the matter..
            HAVE A GOOD DAY

          • RLTMLT

            My parents survived the Great Depression with a set of values that seemed strange to me having grown up in the Go Go Fifties ! My father was lucky enough to have a government job during that difficult period but my parents hardly lived like royalty. They appreciated everything their work ethic provided them and their family. I’m a former Democrat and respect what FDR did to assist average Americans through that terrible period of our past history but todays Democrat Party has since morphed into a group of privileged neoliberal narcissists that think society owes them a royal life style !

          • Robert

            RLTMLT
            Same here my family I always thought were really poor, only to find out later how thrifty they were, and they taught us everything on how to survive no matter how bad the situation got we were country folks and could live off the land, I was reading a composite written by a English person living in this country his estimation was if a total disaster struck the USA where there were no utilities or easy to get survival items the people who live in the city ghetto’s and the poorer country people would have much better chance of survival than most of the population. I do believe that when you put rich people in Congress how can they can not understand how the lesser class people even think, they also in most cases do not care, it has never been a trickle down effect as hey say it is look out for me and the rest can do the same, and I do not think that has any party affiliation. If history is any indicator the Republican party of present is for the rich and for the religious right. The rich in most cases only invest if they have a guarantee of wealth coming back through lack of regulations which put workers in danger or making an inferior product. I invest in some small businesses with other than Americans who want to start business here, and have yet to be let down a couple went under but in a short time they brought me my money by working for someone else, I have found most have high honor on their word, I especially think this of Latino and Korean people. Every American i helped start a business still owes me with the exception of 3, and I helped over 200. I do think Americans have had it so easy they expect someone to come offer them a job not go search for work and again i do not think it is along any party lines, it in my opinion is lack of 3education that most thought was a waste of time so the chose to party rather than learn .
            HAVE A GOOD DAY

          • RLTMLT

            It pretty much boils down to Class, and that’s a curse that has been inflicted on various societies since time immemorial. The word never held any significance for me as I always viewed it for what it was, self promoting economic groups that perpetuate strict class divisions within a society ! This doesn’t mean that I support Socialist or Communist forms of government where personal ambitions and drive are discouraged, but no one in this so-called Capitalist System is immune from walking on someone else’s back to rise to a higher social and economic level. Class totally repudiates the term Social Cohesiveness, only the Liberals still buy into that fantasy !

          • Robert

            RLTMLT
            Yes I do agree with you about, and it will always be with nus because some think they are above others. I would beg to disagree with you on Democratic Socialism, which is really the modern capitalism with social protection thrown in, i lived in Democratic Capitalism in Germany and Norway and saw how happy the people were that lived there.
            The strived for advancement and betterment more than Americans do. My children were so small when we lived there that they would not remember anything about it but after graduating college the best offers came from Europe and now 4 of my children live and work in Europe 2 daughters in England one daughter in London and one daughter in Cumberland, one daughter in Germany and a son in Norway both daughters in England work in the financial sector and the one in Germany and my son in Norway work in the power industry, all make more take home pay than their College counter parts in the USA and have more available to them in their respective countries, each says they will not be moving back but my son in Norway just is in the process of buying his girlfriend, who is also an American who works in Austria, fathers ranch in Oklahoma and lease it out about 1200 acres of farm land.
            In those countries there is no free ride they find jobs for you and if you do not take the job your benefits are cut off.
            I do think there is a lot of misinformation about democratic Socialism, Canada has been Democratic Socialist at least 150 years and Americans go there every day to work.
            HAVE A GOOD DAY

          • RLTMLT

            I stand corrected, Europe has been able to create and maintain a workable version of Capitalist Socialism that is acceptable to it’s citizens. I have to yield to Europe’s version as they have spent countless centuries perfecting it through trial and effort ! Weve only been here two hundred and forty one years !

          • mike74

            I agree with you on most things but the company’s that left were because they could not be compete and to keep there pricing at a level that the average person could afford . I am a former marketing product engineer and had to compete with nonunion at the same quality . I was also part owner of a mechanical contracting company and had to deal with the union for 10 years but the time came we could not compete anymore from a cost and quality standpoint and we went bankrupt and I lost a lot of money . so I speak from experience unions at one time had there place but it has long past the only function of them today is to pad there own pockets . they do not care about the rank and file. Right to work states are where the company’s are that you speak of this is because there is no union bloat . I live in NYS …….

          • Robert

            mike74
            Unions were a big part of the problem. I had a friend who worker for a company called Dresser Corp, on the Eastern Shore of Maryland. He got out of the Army and took a job with Dresser, they made Gasoline pumps, his job was on a lathe making a specific sized pipe and threading it. On Monday of week three while he was still on probation period the union leader called him in the office and said they needed to have a little talk. the bottom line was if he did not slow down the work he was doing then he probably would not get hired permanently, because he was putting out to many pipes daily. The wrong is on both sided like it is in just about everything else, the pendiluim never seems like it stops in the center.
            Companies moved away for extremely cheap labor, the company I helped start and was involved in running up until we sold in 1996, we went form 6 partners and 10 workers to over 700 workers and 4 partners, and were making millions every year as soon as we sold in 2 years everyone was out of work and the work was being done in Thailand.our $26 hourly worker was replaced by one making pay equal to $45 for a 7 day 12 hour a day week. No American Company can compete with extremely cheap foreign labor. If trump puts a import tax on the companies the only people it will hurt is the consumer,, any more we are not the only major consumer of any one product, You also notice that most of Trumps businesses are in foreign Countries not here and Trump is all for getting rid of worker protection which OSHA is really a laugh, they used to give me a two week notice as to when they were coming, plenty of time to make it look good if you are not in compliance, which we always were, I am a stickler for worker protection, I used to fight with one worker all the time because she would not wear the mask at the soldering station trough, I had to finally relocate her to a packing station.
            There is and was wrong on both sides the big Corporations getting rid of Competition, so they are the only ones who makes the product so they make all the money.
            Competition is what made this a great product country and when you get rid of Competition then you are stagnated with the same thing that has no need to improve because it is ll that is available so then you go to overseas sources, which leads the USA to where it is now.
            HAVE A GOOD DAY

      • RLTMLT

        One has to wonder what has kept the unions in operation considering that neither major political party claims to support their activities. Taft Hartley was passed in 1947 to severely limit the activities of unions in this country and to date, no Democrat Administration has made any effort to overturn that legislation. As Bill Clinton said one time, “we appreciate the union’s backing of our candidates in public elections but we do not openly support union activities !”.

        • Robert

          RLTMLT
          That is part of what is wrong with our political system those big donors wanting something back for their contributions, and without the money one stands a chance of loosing the election. It has always been said that we have the best Congress that money can buy.
          HAVE A GOOD DAY

  • I drive an 85 Cougar, a 76 Cordoba and an 07 Harley. The o0nly newer car Thai would consider owning is a MOPAR. They can keep the others new ones.

  • That said, yah Ford.

  • mike74

    I ught a Ford in many years because they just do not make a car that meets my standards for quality and safety . the American cars are no where what they were in the 60’s and 70’s . the unions have driven the cost of the cars up to a point that is crazy and they are far from worth it

  • WVF

    To all Donald Trump naysayers: want to try to convince me that his election had nothing to do with this decision? The man is getting real results and he still has 16 days before he even becomes President!

    • RLTMLT

      WVF, you’ll get no argument from me ! It’s way past time for this country to adopt leadership that can cut deals beneficial to both sides rather than constantly dictating to the rest of the planet from the point of a very expensive gun ! Trump has less to fear from Liberal Democrats than the Neocon Wing of his own party who are desperately attempting to start a New Cold War that only benefits their wealthy friends that make up what president Eisenhower wanted to call the Military Congressional Industrial Complex in his 1960 departing speech ! His political allies convinced him to remove the word “Congressional” from his reference !

      • WVF

        Right-on, RLTMLT! We finally have a real leader, and he’s not going to get sucked into mindless globalist wars, which the RINO’s and rotten Democrats profit from.

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