Ford has canceled a $1.6 billion investment in the new factory in Mexico. Company would instead open 700 new jobs in Michigan. Speaking about the reasons for this shift, CEO Mark Fields, told in an interview for CNN that they showing the commitment to the electric vehicles, as they confirm seven of thirteen vehicles this week.
‘’We’ve committed to back a year or two ago in the term of the investment out $4,5 billion in developing this type of products. The reason why we are doing all that this year is because our view is that electrification is going to grow. That’s why we want to be a leader in this field, and at the same time we are investing in U.S. to build some of the most advanced products, both fully electrified SUV and fully autonomous vehicle’’, Fields said.
While Ford brought back the investments to U.S., Trump redirecting his critics to GM
President elected Donald Trump attacked Ford many times on rallies, and on Twitter in the previous year, so the question is rising does Ford canceling the construction of the huge factory in Mexico because the president elect. Fields, however didn’t respond directly. He said: ‘’When we make decisions like that as the company, first we do what’s right for our business. And we look all factors, including what we view as positive U.S. manufacturing business environment under president elect Trump. Its literally vote of confidence around some of the pro-growth policies that he has been outlining and that’s why we are making this decision to invest here in the U.S and in our plant in Michigan.’’
Even though the Ford officials previously stated the that production in Mexico will cost 40% less, now the White House new administration encouraging manufacturers with the pro-growth outlined policies. This particularly refers to the corporate tax rate that will be down to the 15% rate, and regulatory policies, such as fuel efficiency standards and overall burdens that are on businesses.
During the election campaign and afterwards threatened Ford with massive taxes — as high as 40% — on cars made in Mexico and sold in the U.S. On Tuesday, he tweeted: “General Motors is sending Mexican-made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!”
‘’He (Donald Trump) said very clearly, he wants to create positive business environment for businesses to invest in the U.S. and we need to see how this is going to roll out’’, said Field, but he didn’t want to comment possible connection of president elected tweet and Fords decision to develop American jobs.