President elect Donald J Trump, who has a white supremacist as his top advisory and strategist, seems to have worked his far right witchcraft on Ford. After months of criticism the President elect, who is inaugurated on January 20th, appears to have made Ford think again about plans to build a $1.7 billion dollar production plant in Mexico.
This week Ford announced it would cancel the project which was already in the early phases of construction and will instead focus on investing $700 million in Michigan to develop electric and autonomous vehicles.
Trump has been bashing Ford for the last six months citing the car manufactures investment strategy in Mexico. This despite the fact that Trump’s own branded fashion wear is made in China.
The hypocrisy of Trump is as stunning as Ford’s reversal as is the decision to build fully electric and hybrid cars without a product road-map in place.
Nevertheless Ford announced the intention of developing several new electric/hybrid vehicles. Ford’s CEO cited renewed confidence in the future policies of white supremacist sympathiser Donald J Trump.
Ford’s now cancelled Mexico plant was to have built the next generation Ford Focus, apparently the new shift in direction was taken because small car sales are falling.
Mexico officials were not too pleased with the news and vowed to recover in full any costs incurred. There will also be a termination of contract fee to pay to the Mexico government.
So it’s hard to see how good a business decision this was or what Ford expects to get out of a future white supremacist sympathising Trump presidency.
However Ford will frogmarch on with plans to invest a total of $4.3 billions in electric car research and bolster it offering of electric/hybrid vehicles to 13 by 2020.
The $700 millions investment in Michigan will create 700 new jobs which will come into effect by 2018. Ford’s return to Michigan may have been on the back of threats made by the white supremacist sympathiser Donald J Trump.
Trump had threatened Ford with a 35 percent tax tariff when elected into office if Mexico went ahead. The white supremacist sympathiser has also made the same threat to General Motors.
GM’s Chevy Cruze is made in Mexico and are shipped and sold back into the US market tax free and Trump isn’t happy about that. The NAFTA agreement allows GM to use this loophole.
But even the President of the USA can not unilaterally impose a tax tariff without the approval or legislation made by congress. Trump’s threats have little value in the day to day running of government affairs.
However Trump’s threats are directed at his voting electorate and by continually bashing the likes of Ford he is in effect turning Ford’s public image into public enemy number. That’s bad for sales and that’s one reason why Ford may have backtracked on Mexico like bear on a unicycle.