Back in January, Ford announced they would be building a new $1 billion plant in Mexico for production of the Ford Focus. President Trump got very upset and issued threats at the car company.
Ford eventually relented and kept the plant in Wayne, Michigan, which delighted Trump and allowed him to crow:
Ford said last week that it will expand in Michigan and U.S. instead of building a BILLION dollar plant in Mexico. Thank you Ford & Fiat C!
— Donald J. Trump (@realDonaldTrump) January 9, 2017
So it should be interesting to see how the president handles the latest news from Ford that they will move production of the Focus to China beginning in 2019. The cars made in China will then be sold in the U.S. market. So does that mean Trump will once again threaten tariffs and taxes?
Joe Hinrichs, Ford’s head of global operations, says the move to China makes perfect sense because it will allow production at lower costs. And he didn’t sound too worried about additional taxes when the cars are returned to the United States:
“[We] have looked at how we can be more successful in the small car segment and deliver even more choices for customers in a way that makes business sense. We think the significant capital savings outweigh any of the risks associated with any adjustments to the border.”
Ford is trying to put a positive spin on the move to China, stressing that no jobs will be lost in the United States because they will use the Wayne, Michigan, plant for production of larger vehicles, including the midsize Ranger pickup truck. However, no new jobs will be created, either. Instead, jobs which would have been added here will now be located in China.
So far, there has been no reaction from the president on the news from Ford. Commerce Secretary Wilbur Ross said Ford’s move “shows how flexible multinational companies are in terms of geography.” As if we didn’t already know that.
Sounds like all this “winning” has left President Trump speechless.
Featured Image Via YouTube
