Tuesday, January 3, 2017

“Confident” in Trump, Ford renounces to invest in Mexico – The World

The automotive group american was required to spend $ 1.6 billion to a project of construction of plant in Mexico. 700 million will eventually be invested in Michigan.

The World | • updated | By

The method that is Trump to repatriate industrial jobs in the United States would begin to bear fruit ? The president-elect, has taken the habit of focus through tweets inquisitors car manufacturers are quick to relocate their production, welcomed, Tuesday, 3 January, a dramatic turnaround from Ford. The second american manufacturer has therefore announced that it was opting to build a new plant in Mexico, while investing in Michigan.

In April, Ford had announced plans to invest $ 1.6 billion to San Luis Potosi, in central Mexico, in a factory employing 2,800 people. This decision had attracted the wrath of Mr. Trump, who has not ceased during the presidential campaign to denounce the harmful effects of the free trade agreement in north america signed in 1994. This allows us manufacturers do not pay customs duties on vehicles manufactured in Mexico and imported back then in the United States, from the time when 65 % of the components are of north american origin.

An assembly line of a Ford Focus in Wayne, Michigan, in January 2015.

in Early December, the CEO of Ford, Mark Fields, had assured that it would work with the new administration on issues of free trade, but it was too late for it to cancel its investment in Mexico.

A month later, Mr. Fields makes a 180 degree turn. Not only the mexican plant will not see the day, but, in addition, $ 700 million will eventually be invested in Flat Rock, south of Detroit, with 700 jobs to the key to produce an electric vehicle that will be launched in 2020. In contrast, the production of the Ford Focus will leave the plant in Warren (Michigan) to Mexico, but in an existing plant, Hermosillo.

Read also : Donald Trump poses as a savior of jobs in Indiana

A ” vote of confidence “

Mr. Fields has justified its change of foot by the fact that the market conditions had changed, explaining that the manufacturer had now to take advantage of the climate, ” pro-business “, Mr. Trump has promised to introduce. American businesses are waiting for in fact many of the tax reform announced during the campaign. It aims to reduce the corporate tax rate from 35% to 15 %. At the same time, the president-elect has threatened to institute a tax of 35 % for products manufactured by american companies in Mexico, to then be re-imported in the United States.

Mr. Fields has qualified his reversal of ” a vote of confidence in favour of the elected president and the policies it can lead to. (…) We believe that these tax reforms and regulations are of crucial importance for strengthening the competitiveness of the United States, and, of course, lead to a renaissance of the u.s. manufacturing sector “, he stated, before add : ” we must not delude ourselves, Ford is a global car manufacturer, but our home is here, in the United States. “

The ministry of economy of mexico late Tuesday, the decision and announced that it would ” the repayment by the company of any expenditure made by the local government to facilitate this investment “. the ” The jobs generated in Mexico have helped to keep industrial jobs in the United States, which would have otherwise disappeared due to the asian competition “, he added.

Read also : Donald Trump’s announcement that Sprint is going to repatriate 5,000 jobs in the United States

The ” policy of the tweet “

a Few hours before this announcement, Mr. Trump tried to put pressure on General Motors (GM). the ” General Motors sends models Chevy Cruze products in Mexico to automobile dealers in the United States without paying customs duties at the border. Manufacture in the United States or pay a significant tax border ! “, has tweeted the president-elect.

However, one may wonder whether, in this specific case, Mr. Trump has chosen the right example. GM has in effect immediately responded by stating that the version of this sedan assembly in Mexico is destined for the world market and that only a small number of these vehicles are marketed in the United States. The bulk of production of Cruze comes from the factory in Lordstown (Ohio). According to GM, over the first eleven months of 2016, about 4 500 cars of this model were imported back to the United States, on a total of 172 000. In total, 19 % of north american production for GM is made in Mexico, compared to 13 % for Ford, according to figures from the site WardsAuto.com.

This pass of arms between Mr. Trump and GM comes as the manufacturer plans to remove 1 250 jobs to Lordstown, due to the falling demand for small cars. The weakness in the price of gasoline encourages, in fact, the customers to keep away from this type of model in favor of bigger vehicles such as 4 × 4 and pick-up. The sales of Chevrolet Cruze have plunged 18% in one year.

The “policy of the tweet” by Mr. Trump, consisting of to draw the attention of the big american companies taking to witness its 18.5 million subscribers, has become a habit. On 17 November, the president-elect had already targeted Ford is attributing the merit of having convinced the group not to transfer its production from the factory of Louisville (Kentucky) to Mexico, before the constructor declares never having had the intention to close the site in question, or remove the lower employment.

The same method had been used on December 12, against the group’s weapons Lockheed Martin, whose capitalisation had slumped to $ 4 billion after a tweet from the president-elect stating that the costs for the manufacture of the fighter plane F-35 were ” out of control “. Boeing had experienced the same mishap a few days before, about a message criticizing the price of the future presidential planes, Air Force One.

Read also : The United States, Michigan has bet on the “bulldozer” Trump

Trump announces his first press conference for the 11th of January

Donald Trump has announced Tuesday, January 3 by a message on Twitter that he would hold his first press conference as president-elect of the United States on the 11th of January in New York. the ” I will hold a press conference general January 11 at N. Y. C. Thank you, “, he stated in a message on the social network Tuesday in the early evening.

The real estate tycoon, who is expected to take office on 20 January, had originally planned to give a press conference on 15 December. It should in particular provide details on how it plans to stop managing his vast real estate empire international in order to avoid any conflict of interest, the time of his presidency. But this press conference is announced at the end of November had finally been postponed. The president-elect a republican had announced that it would send to the press in January, before taking office, but without specifying a date. His last press conference back in the month of July.


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