Ford cancels plans for Mexico plant after Trump threatens to tax GM
President-elect threatened to tax General Motors for importing cars from Mexico, prompting rival Ford to announce it won’t open planned assembling plant in the…
Ford is rethinking its strategic expansion plan. Detroit's second carmaker announced the cancellation of a $ 1.6 billion investment in Mexico as President-elect Donald Trump threatened rival GM with rising taxes for selling models imported from Mexico.
In return, Ford will spend $700m to expand the production of electric cars in Michigan, reports El País, the leading Spanish newspaper.
Trump tweeted early Tuesday that GM was sending Mexican-made Chevrolet Cruzes to the US tax-free. He told GM to make the cars in the US “or pay big border tax!”
Meanwhile, Ford announced it would not open a planned facility for assembling Ford Focuses, which would have brought $1.6bn and 2,800 jobs to the state of San Luis Potosí. Instead the company will add 700 jobs at a cost of $700m to a US plant in Michigan, the company announced, as part of its planned expansion of electrified and automated vehicles.
As reported in El País.
LEAVE A COMMENT:
Join the discussion! Leave a comment.