Trump Wins Again: Ford Cancels Plan For $1.6 Billion Mexican Plant, Will Invest In Michigan Instead
by Tyler Durden
Jan 3, 2017 11:17 AM
Trump's "strong hints" to US-based manufacturers are starting be heard loud and clear, and nowhere so more than at Ford, which just hours after observing the beat down Trump gave to competitor GM on Twitter, announced that it is scrapping plans for a new $1.6 billion plant in San Luis Potosi, Mexico after itself coming under criticism by Donald Trump for shifting small-car production south of the border, and announced it would instead invest $700m in a plant expansion in Flat Rock, Michigan.
Mark Fields, Ford’s chief executive officer, announced the plan today at a press conference at the automaker’s factory in Flat Rock, Michigan, south of Detroit. The second largest U.S. automaker builds the Mustang sports car and Lincoln Continental sedan from its Flat Rock plant, which employs more than 3,700 workers according to Bloomberg. Ford idled the factory for a week in October due to declining Mustang sales, which fell 13 percent in the first 11 months of 2016.
Until February of last year, Ford also built the Fusion family sedan in Flat Rock. After sales for the model slumped, the automaker consolidated production of Fusion at its primary plant in Hermosillo, Mexico. Fusion sales fell more than 10 percent last year through November.
Ford was a target of President-elect Donald Trump during his campaign for plans to move small car production from the U.S. to Mexico. The Dearborn, Michigan-based company changed course on a plan to move production of the Lincoln MKC sport utility vehicle south of the border. Fields said Trumpinfluenced the automaker’s decision to continue building the MKC in a Louisville, Kentucky, factory where it also produces the Ford Escape SUV.
And so, it would appear that Trump was right, and won, again.
Curiously, according to CNBC, a high level Ford source said that "Trump had nothing to do with Ford's decision to expand its Michigan plant."
Sure, it was just a bigly coincidence.
We look forward to his victory lap on Twitter in moments.
by Tyler Durden
Jan 3, 2017 11:17 AM
Trump's "strong hints" to US-based manufacturers are starting be heard loud and clear, and nowhere so more than at Ford, which just hours after observing the beat down Trump gave to competitor GM on Twitter, announced that it is scrapping plans for a new $1.6 billion plant in San Luis Potosi, Mexico after itself coming under criticism by Donald Trump for shifting small-car production south of the border, and announced it would instead invest $700m in a plant expansion in Flat Rock, Michigan.
Mark Fields, Ford’s chief executive officer, announced the plan today at a press conference at the automaker’s factory in Flat Rock, Michigan, south of Detroit. The second largest U.S. automaker builds the Mustang sports car and Lincoln Continental sedan from its Flat Rock plant, which employs more than 3,700 workers according to Bloomberg. Ford idled the factory for a week in October due to declining Mustang sales, which fell 13 percent in the first 11 months of 2016.
Until February of last year, Ford also built the Fusion family sedan in Flat Rock. After sales for the model slumped, the automaker consolidated production of Fusion at its primary plant in Hermosillo, Mexico. Fusion sales fell more than 10 percent last year through November.
Ford was a target of President-elect Donald Trump during his campaign for plans to move small car production from the U.S. to Mexico. The Dearborn, Michigan-based company changed course on a plan to move production of the Lincoln MKC sport utility vehicle south of the border. Fields said Trumpinfluenced the automaker’s decision to continue building the MKC in a Louisville, Kentucky, factory where it also produces the Ford Escape SUV.
And so, it would appear that Trump was right, and won, again.
Curiously, according to CNBC, a high level Ford source said that "Trump had nothing to do with Ford's decision to expand its Michigan plant."
Sure, it was just a bigly coincidence.
We look forward to his victory lap on Twitter in moments.
