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Ford scrap Mexico plant, invest in Michigan instead - CEO cites Trump policies


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Old 03-01-2017, 19:18
Palafrugel
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$1.6 billion Mexican plant scrapped - money will be invested in the US Michigan plant instead. Seems the US is already moulding to Trump's and those who voted for him - views on US jobs first.

http://www.foxnews.com/politics/2017...-policies.html

http://www.bbc.co.uk/news/business-38497898
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Old 03-01-2017, 19:24
Dotheboyshall
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25% tax on cars imported from Mexico by US companies.
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Old 03-01-2017, 19:27
andykn
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$1.6 billion Mexican plant scrapped - money will be invested in the US Michigan plant instead. Seems the US is already moulding to Trump's and those who voted for him - views on US jobs first.

http://www.foxnews.com/politics/2017...-policies.html

http://www.bbc.co.uk/news/business-38497898
You should have read the article first:

"Ford said it needed to re-organise to use existing facilities more efficiently amid falling sales of its smaller cars...

...Ford said it would now invest some of that sum in Flat Rock"
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Old 03-01-2017, 19:30
Palafrugel
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You should have read the article first:

"Ford said it needed to re-organise to use existing facilities more efficiently amid falling sales of its smaller cars...

...Ford said it would now invest some of that sum in Flat Rock"
You must have missed this, selective reading perhaps?

CEO of Ford Mark Fields on why Mexico was abandoned today:

“As we think about the investments here in Michigan, as you can imagine, Neil, we look at a lot of factors as we make those. One of the factors that we’re looking at is a more positive U.S. manufacturing business environment under President-elect Trump and some of the pro-growth policies he said he’s going to pursue. And so this is a vote of confidence.”
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Old 03-01-2017, 19:31
LostFool
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25% tax on cars imported from Mexico by US companies.
Wouldn't that be against the NAFTA agreement - or is he going to rip that up too?
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Old 03-01-2017, 19:32
andykn
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You must have missed this, selective reading perhaps?
I prefer to look at the reality rather than the sucking up to Trump. The reality is that Ford don't need a big new factory so are spending less on an existing one.
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Old 03-01-2017, 19:33
andykn
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Wouldn't that be against the NAFTA agreement - or is he going to rip that up too?
AFAIK he has suggested he might.

That's what happens when a free trade area is under threat, producers move to where the bulk of the consumers are...
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Old 03-01-2017, 19:38
Palafrugel
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I prefer to look at the reality rather than the sucking up to Trump.
You don't have to suck up to Trump or anyone else, just be capable of reading what the Ford CEO clearly said - crystal clear in fact, about why he abandoned Mexico. We can try it again, maybe you should have read the article?

CEO of Ford Mark Fields on why Mexico was abandoned today:

“As we think about the investments here in Michigan, as you can imagine, Neil, we look at a lot of factors as we make those. One of the factors that we’re looking at is a more positive U.S. manufacturing business environment under President-elect Trump and some of the pro-growth policies he said he’s going to pursue. And so this is a vote of confidence.”
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Old 03-01-2017, 20:42
mounty
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but will Mexico put up with it? They could come back with an even sweeter offer
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Old 03-01-2017, 20:52
James_Orton
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I wonder if Mexico will put with it? They could come back with an even sweeter offer
no american company would risk going against a US president. The mexicans are up against someone who believes moving manufacturing back to the US and making it hard to dump cheap goods in the american market.

It's a policy that makes it hard for non US companies to do business.
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Old 03-01-2017, 21:02
Mark_Jones9
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Which Trump policies are pro business?
Lower corporation tax, ....
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Old 03-01-2017, 21:04
andykn
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You don't have to suck up to Trump or anyone else, just be capable of reading what the Ford CEO clearly said - crystal clear in fact, about why he abandoned Mexico. We can try it again, maybe you should have read the article?
He abandoned building a new plant (in Mexico) because Ford aren't selling enough cars to justify a new plant, deciding to spend some of the money on an existing factory (in the US).

The rest is just sucking up to Trump.
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Old 03-01-2017, 21:07
LostFool
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but will Mexico put up with it? They could come back with an even sweeter offer
Maybe Mexico could build a wall to stop American companies leaving..

Or put a supertax on Big Macs.
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Old 03-01-2017, 21:10
rusty123
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25% tax on cars imported from Mexico by US companies.
I didn't think countries could apply selective punitive import taxes in that manner because it breaches WTO rules.

I can only conclude I must be mistaken because otherwise that means the business world has considerably dumbed down.

When will he start tweeting threats to the likes of Google and McDonalds I wonder...

or even practice what he's preaching with his own business empire or perhaps start paying taxes himself?

I know, I know. I'm dreaming

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Old 03-01-2017, 21:14
LostFool
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I didn't think countries could apply selective punitive import taxes in that manner because it breaches WTO rules.
Trump doesn't care about rules. He makes them up for himself as only a billionaire can do.

Or at least he hasn't until now. When he is sworn in he's going to suddenly find that he doesn't have as much power as President as he thinks he has. The Constitution, Supreme Court and Congress won't be his personal playthings.
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Old 03-01-2017, 21:21
Mark_Jones9
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Trump doesn't care about rules. He makes them up for himself as only a billionaire can do.

Or at least he hasn't until now. When he is sworn in he's going to suddenly find that he doesn't have as much power as President as he thinks he has. The Constitution, Supreme Court and Congress won't be his personal playthings.
US Presidents have the power to withdraw from trade treatise and impose trade tariffs. The supreme court has upheld that right, regarding it as foreign policy.
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Old 03-01-2017, 21:31
rusty123
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Trump doesn't care about rules. He makes them up for himself as only a billionaire can do.

Or at least he hasn't until now. When he is sworn in he's going to suddenly find that he doesn't have as much power as President as he thinks he has. The Constitution, Supreme Court and Congress won't be his personal playthings.
I don't really care whether he cares about the rules, delusions of grandeur or even a bit of a god complex

I just want clarity as to what the rules are because I can't get my head around why, on the off chance he's talking through his wrinkly passage, that people are letting him get away with it
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Old 04-01-2017, 14:08
Palafrugel
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US Presidents have the power to withdraw from trade treatise and impose trade tariffs. The supreme court has upheld that right, regarding it as foreign policy.
My understanding also. This move seems to be a triumph for US manufacturing and Trump - love him or loathe him - seems to have had an early victory here.
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Old 04-01-2017, 14:15
jmclaugh
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This move seems to be a triumph for US manufacturing and Trump - love him or loathe him - seems to have had an early victory here.
Pretty much sums it up.
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Old 04-01-2017, 14:20
trevgo
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I have to smile at all these Europhobe Brexiters, haranguing the EU for being protectionist and anti free trade whilst adoring Trump for doing EXACTLY THAT!

Anyone who believes The D is going to make life easy for post Brexit UK has a massive disappointment coming. And in Farage's case, extreme embarrassment.
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Old 04-01-2017, 14:38
andykn
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My understanding also. This move seems to be a triumph for US manufacturing and Trump - love him or loathe him - seems to have had an early victory here.
The slow demise of Ford is not a triumph for US manufacturing.
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Old 04-01-2017, 14:38
mimik1uk
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its a good political victory for Trump and he needs it given he has the lowest approval ratings of any president elect since they started tracking them in the 1970s

whether Ford would have made the same decision for purely business reasons without the threats from trump is open to debate, the information suggests they would have, but if they can do it and score some brownie points with The Orange One then its good PR for them too
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Old 04-01-2017, 14:41
John146
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The slow demise of Ford is not a triumph for US manufacturing.
Slow demise?, they are making record profits, and, intend to create another 700 jobs at their Michigan plant

http://money.cnn.com/2016/01/28/news...ngs/index.html
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Old 04-01-2017, 14:49
andykn
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Slow demise?, they are making record profits, and, intend to create another 700 jobs at their Michigan plant

http://money.cnn.com/2016/01/28/news...ngs/index.html
Ford was going to build a new factory in Mexico but has had to scale back those plans:

"Ford said it needed to re-organise to use existing facilities more efficiently amid falling sales of its smaller cars...

...Ford said it would now invest some of that sum in Flat Rock"
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Old 04-01-2017, 14:54
Palafrugel
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Ford was going to build a new factory in Mexico but has had to scale back those plans:

"Ford said it needed to re-organise to use existing facilities more efficiently amid falling sales of its smaller cars...

...Ford said it would now invest some of that sum in Flat Rock"
Small car production, such as the compact Focus model, will still move to Mexico, just into an existing Ford plant in Hermosillo.

CNN Money: Ford cancels Mexico plant. Will create 700 U.S. jobs in 'vote of confidence' in Trump

NY Times: Ford, Criticized by Trump, Cancels Plans to Build Mexican Plant
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