Every few days in the wake of Donald Trump’s victory it seems there’s another company announced that they’ll be bringing jobs back to the U.S., many of such deals negotiated by the President elect himself.
Before the market opened today, Trump sent out a Tweet blasting General Motors for sending production of a certain vehicle overseas.
Of course, the problem isn’t individual companies like GM, it’s the incentives created by America having the highest corporate tax rate in the world. Regardless, the timing of a statement just released by Ford couldn’t have been better for them when it comes to them avoiding becoming a target of Trump. Ford Motor Company just announced plans to cancel the building of a $1.3 billion plant in Mexico and instead invest $700 million in a Michigan assembly plant, directly tying the decision to “pro-growth policies” championed by President-elect Donald Trump.
Trump had previously been critical of Ford’s plans to build in Mexico. “These ridiculous, job-crushing transactions will not happen when I am president,” Trump said last September when Ford first announced the plant in Mexico.
As CNN reported:
Ford CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment president-elect Donald Trump is creating. However, he stressed Ford did not do any sort of special deal with Trump.
“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday. He said Ford did speak with Trump and vice-president elect Mike Pence this morning.
The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gasoline-powered vehicles within the next 15 years.
Trump repeatedly slammed Ford on the campaign trail, claiming the company was moving good manufacturing jobs to Mexico. He vowed to slap a 35% tariff on Ford vehicles made in Mexico and sold in the U.S.
This move will bring back 700 jobs in the auto industry to Michigan. Not a bad feat for a man who isn’t even President yet!