Ford scraps Mexico plant following Trump criticism

[webfact]

Ford scraps Mexico plant following Trump criticism

 

 

Ford Motor Company has scrapped a planned Mexican car factory and is instead extending its operations in Michigan by creating 700 jobs.

 

The cancellation of the 1.6 billion dollar plant followed criticism by Donald Trump of General Motors over its production of models in Mexico.

 

Ford CEO Mark Fields claims the decision was just a coincidence and was made due to a fall in North American demand for small cars like those that would have been made at the Mexican plant.

 

“We’re also encouraged by the pro-growth policies that President-elect Trump and the new Congress have indicated that they will pursue.”

 

Ford is not abandoning production completely in Mexico, but is switching production of its Focus model to its existing plant in Hermosillo there to improve profitability.

 

In his tweet the President-elect repeated his campaign message targeting General Motors, saying they should make products in the US or pay a promised a border tax.

 

General Motors has defended its production of some of its Cruze line by saying the cars were for global customers and not meant for the US market.

 

Part of Trump’s appeal to voters in last year’s presidential election lay in his pledge to boost domestic jobs. His apparent efforts to brow beat the US car industry show he’s prepared to go further than previous leaders in trying to influence corporate decisions.

 

-- © Copyright Euronews 2017-01-04

[ilostmypassword]

Ford had said it would move production of its Focus small car in 2018 from Michigan to a factory being built in San Luis Potosí, Mexico, a move Mr. Trump had said could lead to 35% tariffs totaling more than $1 billion annually against the company. Ford instead said it would move that car’s assembly to a plant it owns in Hermosillo, Mexico.

http://www.wsj.com/articles/trump-targets-gm-on-chevy-cruzes-imported-from-mexico-1483448986

Hermosillo, Mexico is exactly where in the USA?

[Berkshire]

I read another article about this very story which indicated in short, Ford was going to do what they had planned to do all along.  In other words, Trump played no role in their decision.  But the Ford CEO is a smart business man.  He knows that by complementing Trump (“We’re also encouraged by the pro-growth policies that President-elect Trump...."), they will remove themselves as targets for Trump's tweeting rage.  He knows that one negative tweet from Trump could mean millions in market cap for the company's stock price in the short term.  So just like world leaders, CEOs are finding out that if they publicly kiss-up to Trump, they would never be attacked.  In private, they can do whatever they darn please.  I just wonder how long this facade will go on. 

[craigt3365]

http://www.huffingtonpost.com/entry/ford-mexico-plant_us_586bcf32e4b0d9a5945c8b7b

 

Quote

 

He later falsely claimed he’d convinced the company to keep a plant open in Kentucky. In fact, Ford had never planned to close the plant.

 

The company said that Trump was likewise not responsible for its latest decision.

 

“We didn’t cut a deal with Trump. We did it for our business,” Ford CEO Mark Fields told CNN on Tuesday.

 

 

 

[craigt3365]

On the other hand:

https://www.bloomberg.com/news/articles/2017-01-03/ford-cancels-1-6-billion-mexico-plant-after-trump-s-criticism

Quote

“One of the factors we’re looking at is the more positive U.S. business environment that we foresee under President-elect Trump and the pro-growth policies that he’s been outlining,” Fields told reporters at Ford’s factory in Flat Rock, Michigan, where the company is investing $700 million and adding 700 jobs. “This is a vote of confidence around that.”

 

Edited January 4, 2017 by craigt3365

[globin]

1 hour ago, craigt3365 said:

http://www.huffingtonpost.com/entry/ford-mexico-plant_us_586bcf32e4b0d9a5945c8b7b

 

 

 

When I go to this link there is a restricted video accompanying the article, who is censoring this news?

[craigt3365]

12 minutes ago, globin said:

When I go to this link there is a restricted video accompanying the article, who is censoring this news?

Some sites have restrictions as to where you are located.  I'm not sure about this one, but seems to be the case. 

[KKr]

3 hours ago, Berkshire said:

facade

did you mean Charade, and your spell checker Facade, or Facade?

[ilostmypassword]

4 minutes ago, KKr said:

did you mean Charade, and your spell checker Facade, or Facade?

I think it's a portmanteau of farce and charade.

[KKr]

4 hours ago, Berkshire said:

facade

did you mean Charade, and your spell checker Facade, or Facade?

 

14 minutes ago, ilostmypassword said:

I think it's a portmanteau of farce and charade.

Tx, did not spot that 
So, it's the fourth alternative of the multiple choice question: "All of the above"

[rudi49jr]

Jeez, Trump opens his big mouth and suddenly everyone is his lapdog? Just grow a pair ...

[Berkshire]

1 hour ago, KKr said:

did you mean Charade, and your spell checker Facade, or Facade?

 

 

fa·cade

fəˈsäd/

noun

noun: facade; plural noun: facades; noun: façade; plural noun: façades

1. the face of a building, especially the principal front that looks onto a street or open space.

   synonyms:

   front, frontage, face, elevation, exterior, outside "a vinyl-sided facade"

   • an outward appearance that is maintained to conceal a less pleasant or creditable reality.

Edited January 4, 2017 by Berkshire

[Grubster]

8 hours ago, Berkshire said:

I read another article about this very story which indicated in short, Ford was going to do what they had planned to do all along.  In other words, Trump played no role in their decision.  But the Ford CEO is a smart business man.  He knows that by complementing Trump (“We’re also encouraged by the pro-growth policies that President-elect Trump...."), they will remove themselves as targets for Trump's tweeting rage.  He knows that one negative tweet from Trump could mean millions in market cap for the company's stock price in the short term.  So just like world leaders, CEOs are finding out that if they publicly kiss-up to Trump, they would never be attacked.  In private, they can do whatever they darn please.  I just wonder how long this facade will go on. 

I believe most parts are made overseas for the big three US auto manufacturers, they are mostly assembled in the US and Canada. Those parts need to be made in the US and lets see if Trump gets on that wagon. I like what he says on this issue, but I will watch what he does.

[anotheruser]

9 hours ago, Berkshire said:

I read another article about this very story which indicated in short, Ford was going to do what they had planned to do all along.  In other words, Trump played no role in their decision.  But the Ford CEO is a smart business man.  He knows that by complementing Trump (“We’re also encouraged by the pro-growth policies that President-elect Trump...."), they will remove themselves as targets for Trump's tweeting rage.  He knows that one negative tweet from Trump could mean millions in market cap for the company's stock price in the short term.  So just like world leaders, CEOs are finding out that if they publicly kiss-up to Trump, they would never be attacked.  In private, they can do whatever they darn please.  I just wonder how long this facade will go on. 

 

So what you are saying is Trump through tweets did influence it? They said they didn't make a deal with Trump. The fact they didn't have to says something. 700 new jobs in Michigan is a great thing.

[Berkshire]

1 minute ago, anotheruser said:

 

So what you are saying is Trump through tweets did influence it? They said they didn't make a deal with Trump. The fact they didn't have to says something. 700 new jobs in Michigan is a great thing.

 

No, I'm saying that CEOs and world leaders simply need to flatter Trump and he will be off their backs.  I honestly hope this is not the case, but it appears to be that way. 

[anotheruser]

3 minutes ago, Berkshire said:

 

No, I'm saying that CEOs and world leaders simply need to flatter Trump and he will be off their backs.  I honestly hope this is not the case, but it appears to be that way. 

 

That in and of itself is influence.

[ilostmypassword]

3 hours ago, Berkshire said:

 

fa·cade

fəˈsäd/

noun

noun: facade; plural noun: facades; noun: façade; plural noun: façades

1. the face of a building, especially the principal front that looks onto a street or open space.

   synonyms:

   front, frontage, face, elevation, exterior, outside "a vinyl-sided facade"

   • an outward appearance that is maintained to conceal a less pleasant or creditable reality.

First off, I liked the comment alot where you used facade. That said, a farce can go on and a charade can go on because they're both activities. A facade can't go on because it's not an activity.  

[Berkshire]

10 minutes ago, anotheruser said:

 

That in and of itself is influence.

 

What?  So if Putin were to annex all of eastern Europe while telling Trump what a smart guy he is, Trump will do nothing.  That's influence? 

[anotheruser]

It is all a facade and a farce.

[anotheruser]

Just now, Berkshire said:

 

What?  So if Putin were to annex all of eastern Europe while telling Trump what a smart guy he is, Trump will do nothing.  That's influence? 

 

You don't think what Ford announced will have implications for what other companies do? Try  building a factory in Mexico now if you are the head of GM.  The fact they felt compelled to pay lip service will influence others after Ford. 

 

Expect even a company like Apple to try do something in the USA.

[Berkshire]

Just now, anotheruser said:

 

You don't think what Ford announced will have implications for what other companies do? Try  building a factory in Mexico now if you are the head of GM.  The fact they felt compelled to pay lip service will influence others after Ford. 

 

Expect even a company like Apple to try do something in the USA.

 

CEOs will only do what's best for their company's bottom line....and their stock options.  They know how to play the PR game pretty darn well.  So let's take Apple.  The only way Apple would move a significant portion of their manufacturing back to the US is to receive massive incentives (at the taxpayer's expense).  And even then, the cost of production would increase significantly, which would be passed onto the consumers.  The only losers would be the American people. 

[anotheruser]

6 minutes ago, Berkshire said:

 

CEOs will only do what's best for their company's bottom line....and their stock options.  They know how to play the PR game pretty darn well.  So let's take Apple.  The only way Apple would move a significant portion of their manufacturing back to the US is to receive massive incentives (at the taxpayer's expense).  And even then, the cost of production would increase significantly, which would be passed onto the consumers.  The only losers would be the American people. 

 

The one's that shop at Walmart I guess. It isn't as simple as you make it out. If prices go up at home but the people get jobs that pay a bit things equal themselves out. 700 jobs will transform entire parts of one area of Michigan.

 

However it happens whether or not it is Trump, which has already been said no direct deal was made, it is good news. 
The fact they cite Trump shows they are either afraid of him or respect hin enough to pay lip service. Either way it influences the political dialogue. When is the last time you heard somebody attribute any decision to build a plant in the USA to Obama?

Edited January 4, 2017 by anotheruser

[Berkshire]

Just now, anotheruser said:

 

The one's that shop at Walmart I guess. It isn't as simple as you make it out. If prices go up at home but the people get jobs that pay a bit things equal themselves out. 700 jobs will transform entire parts of one area of Michigan.

 

However it happens whether or not it is Trump, which has already been said no direct deal was made, it is good news. 
The fact they cite Trump shows they are either afraid of him or respect hin enough to pay lip service. Either way it influences the political dialogue. When is the last time you heard somebody attribute any decision to build a plant to Obama?

 

It's not Obama's style to expect CEOs to lavish praise on him.  Besides, CEOs know that it wouldn't influence him even a little bit.  With Trump, it's just too easy.

[anotheruser]

Just now, Berkshire said:

 

It's not Obama's style to expect CEOs to lavish praise on him.  Besides, CEOs know that it wouldn't influence him even a little bit.  With Trump, it's just too easy.

 

Well Obama had his own style and now there is another incoming president. You act like the announcement from ford is bad news.

 

[ilostmypassword]

3 minutes ago, anotheruser said:

 

The one's that shop at Walmart I guess. It isn't as simple as you make it out. If prices go up at home but the people get jobs that pay a bit things equal themselves out. 700 jobs will transform entire parts of one area of Michigan.

 

However it happens whether or not it is Trump, which has already been said no direct deal was made, it is good news. 
The fact they cite Trump shows they are either afraid of him or respect hin enough to pay lip service. Either way it influences the political dialogue. When is the last time you heard somebody attribute any decision to build a plant to Obama?

What Trump is alleged to have done is nothing as compared to what Obama actually did. Employment at the auto factories is 250,000 more than it was in 2009 when Obama bailed out the auto industry. Mitt Romney wasn't happy about that rescue at all. And the auto workers in Ohio let him know it in 2012.

[Berkshire]

Just now, anotheruser said:

 

Well Obama had his own style and now there is another incoming president. You act like the announcement from ford is bad news.

 

 

Geez man, it has nothing do with whether it's good or bad news.  Ford made a business decision and Trump took credit.  The precedent isn't whether companies will try to keep jobs in America.  It's whether simple flattery can lead to companies getting positive PR and influence the POTUS. 

[anotheruser]

17 minutes ago, ilostmypassword said:

What Trump is alleged to have done is nothing as compared to what Obama actually did. Employment at the auto factories is 250,000 more than it was in 2009 when Obama bailed out the auto industry. Mitt Romney wasn't happy about that rescue at all. And the auto workers in Ohio let him know it in 2012.

 

The auto unions were corrupt and wanted something like $80,000 a year after benefits for a simple bolt monkey. There is no way any company can afford unions like that and remain competitive. 

 

The unions basically bankrupted the company that fed them.

Edited January 4, 2017 by anotheruser

[iReason]

 

"In his tweet the President-elect repeated his campaign message targeting General Motors, saying they should make products in the US or pay a promised a border tax."

 

To the hypocritical huckster:

 

If and when the con-man wants to take credit for bringing jobs back to the US, he can start with all the jobs he and his daughter have personally outsourced labor to.

 

i.e: The countries of China, Mexico, Vietnam, Indonesia and Bangladesh.

 

Or, pay the 35% along with his daughter.

http://www.cnbc.com/2016/12/05/ivanka-trumps-imported-collection-could-be-subject-to-her-fathers-35-tariff.html

[anotheruser]

39 minutes ago, iReason said:

 

"In his tweet the President-elect repeated his campaign message targeting General Motors,

saying they should make products in the US or pay a promised a border tax."

 

To the hypocritical huckster:

 

If and when the con-man wants to take credit for bringing jobs back to the US, he can start with all the jobs he and his daughter have personally outsourced labor to.

 

i.e: The countries of China, Mexico, Vietnam, Indonesia and Bangladesh.

 

What does that have to do with the Ford deal?

[BlindMagician]

Will all US Cos start relocating to plants back to the US? Mass exodus from Thailand? That would be fun to watch the resulting implosion.