Ford has just announced it will drop plans for a billion dollar plant in Mexico, instead putting that investment back into Michigan where it’s said that it will create at least 700 jobs:
#Breaking News: Ford cancels plan for #Mexico plant. $F pic.twitter.com/w1hUgyQzMk
— FOX Business (@FoxBusiness) January 3, 2017
Here’s more:
FOX NEWS – Ford Motor Company on Tuesday announced plans to cancel the building of a $1.3 billion plant in Mexico and instead invest $700 million in a Michigan assembly plant, directly tying the decision to “pro-growth policies” championed by President-elect Donald Trump.
Trump had previously been critical of Ford’s plans to build in Mexico.
CEO Mark Fields, speaking at an event at the Flat Rock Assembly Plant, said the policies that Trump “and the new Congress have indicated they will pursue” were vital to the company’s decision.
“We believe these tax and regulatory reforms are necessary to boost U.S. competitiveness,” Fields said.
The investment in the Flat Rock plant is set to create 700 jobs, according to Fields.
I think it’s probably right that Ford is making this move because of the anticipated policies of the Republican congress and Trump administration. But I also can’t help but wonder how much of his was done because of the threats Trump made last year to Ford. If Trump had never made these threats, I would be cheering this on as a win for both Trump and Republicans. But as it stands, it’s hard to emphatically cheer for something that has been sullied in part by authoritarianistic threats.
But I am glad to see the move happen. Let’s just hope that both Congress and Trump come through with some much needed tax, economic, and regulatory reform quickly so that this announcement by Ford wasn’t made in vain.
UPDATE: Ford CEO says this was not done because of Trump bullying:
Ford CEO on @CNBC: We called President-elect Trump & VP-elect Pence; they were "happy" that we are making investment in Michigan pic.twitter.com/LEjDFNnj6l
— CNBC Now (@CNBCnow) January 3, 2017
Ford CEO: Main reason for canceling Mexico plant not due to Trump pressure, it's due to "market demand"; don't see volume expected for plant
— CNBC Now (@CNBCnow) January 3, 2017
That is what they say, but I’m not sure I believe them completely…