Ford cancels plans for Mexico plant after Trump threatens to tax GM
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.