President Trump- The Implications

[Conan71]

At least according to Ford officials, FOMOCO is impressed by Trump's pro-business attitude.  How much that actually weighed on this decision to scrap plans for a plant in Mexico and renovating their Flat Rock plant is anyone's guess.  Perhaps it could have been a dead fish mailed to Bill Ford with a return address in Trump Tower which influenced the decision.

Ford Motor, which had been bashed by Donald Trump for shipping jobs outside the U.S., announced Tuesday that it will cancel production of a $1.6 billion plant in Mexico, and will instead invest $700 million in Flat Rock, Michigan.

The U.S. auto giant said it will add 700 direct new jobs in Flat Rock to produce high-tech electrified and autonomous vehicles, plus the Ford Mustang and Lincoln Continental.

Ford had originally planned to build its Ford Focus in San Luis Potosi, Mexico. The company said it will continue to build its Focus at an existing plant in Hermosillo, Mexico, to improve company profitability.

Ford Chairman Bill Ford Jr. said he spoke with President-elect Trump on Tuesday morning to tell him of the decision to invest in the U.S. and cancel the Mexico plant, according to Reuters.

"We're also encouraged by the pro-growth policies that President-elect Trump and the new Congress have indicated that they will pursue," Ford President and CEO Mark Fields said in a statement.

A source told Reuters there were no negotiations between Trump and the company.

In Twitter posts, Trump claimed credit for Ford's announcement.

During the final weeks of the presidential campaign, Trump slammed what he called Ford's "horrible" plans to move all small car production to Mexico within three years.

"It used to be cars were made in Flint and you couldn't drink the water in Mexico," he said in a September speech in Flint, Michigan. "Now the cars are made in Mexico, and you can't drink the water in Flint. That's not good." He was referring to the lead water crisis in the the Michigan city.

Trump also claimed that he helped stop Ford from moving an entire factory from Kentucky to Mexico.

It is not clear how many jobs would have been impacted if the low-selling MKC had moved to Mexico.

Earlier Tuesday, Trump attacked General Motors on Twitter, saying the auto giant is making a Chevy Cruze model in Mexico and then sending them to U.S. dealers tax free. Trump had previously bragged about a deal with United Technologies unit Carrier to keep some jobs in Indiana.

Ford's changes are a part its plan to become an auto and mobility company. The company said it will invest $4.5 billion in electrified vehicles by 2020.

"As more and more consumers around the world become interested in electrified vehicles, Ford is committed to being a leader in providing consumers with a broad range of electrified vehicles, services and solutions that make people's lives better," Fields said in the company's announcement.

The electrified vehicles announced on Tuesday include, fully electric small SUV, coming by 2020 and a hybrid version of its best-selling F-150 pickup.

http://www.cnbc.com/2017/01/03/ford-canceling-plans-for-16-billion-plant-in-mexico-investing-700-million-in-michigan-expansion-instead.html

[cannon_fodder]

I suspected there is a mix of reasons, Trump's political pressure being among them.  Also, fear that Trump would pressing Congress into tariffs if bad PR kept popping up around US manufacturing interests in Mexico. If you cant avoid that by not building one plant for 4 years, good move.

Or, we could believe what Ford said:

Ford CEO Mark Fields said the company decided in recent weeks not to build the plant because of declining demand for small cars in the U.S

The Mexican plant was meant to build the Ford Focus. They simply are not building a new plant to build small cars. The $700mil in Michigan will go towards electric vehicles and autonomous cars... higher tech manufacturing that is not well suited for Mexico.
http://www.nwitimes.com/business/transportation/update-ford-cancels-plan-to-build-new-mexican-plant-adds/article_841643da-8d35-51d1-a26d-bef931c66318.html

If you were on the fence about building a new plant in Mexico for economic reasons, Trump's anti-trade rhetoric and bad PR could certainly convince you to cancel those plans.  If it was an either or decision, that's a "W" for sure and Trump's interference with private business may have helped.  But, this is not an instance of Trump bullying a company into bringing Mexican jobs back to America fair and square.  That takes economics (not counting government bribes), no matter what The Donald says.   

On a related note:  the Peso dropped on the news.  It is down 20% since Trump was elected. Do you think Trump has any notion of the fact that bad economic news for Mexico is bad news for illegal immigration into the US?  An economically strong and stable Mexico is in our interest.  By all means, American jobs come first, but no one should take pleasure in Mexico's pain... even if just for self interest reasons.

[erfalf]

It was a much wider backlash than Trump.   Unless he orchestrated this with the House to get some Brownie Points...!   And we all know what he would want to be doing with Brownie Points....

They learn from the best...

http://www.politico.com/story/2010/06/lawmakers-seek-to-gut-ethics-office-038345

Both parties have been at this for some time. Which says to me either it really is a problem, or that congressmen like to act above the law regardless of party. I tend to believe the later.

[patric]

To be sure, there may be some who give Trump's Twitter account credit for the course correction. But though it surely had an impact on some of the members, Trump's tweets merely rode the crest of public opinion against the changes, rather than leading it. It is a mistake to give Trump too much credit, just as it is a mistake to take his Drain the Swamp plan seriously.

http://www.cnn.com/2017/01/03/opinions/house-ethics-drutman-opinion/

[erfalf]

To be sure, there may be some who give Trump's Twitter account credit for the course correction. But though it surely had an impact on some of the members, Trump's tweets merely rode the crest of public opinion against the changes, rather than leading it. It is a mistake to give Trump too much credit, just as it is a mistake to take his Drain the Swamp plan seriously.

http://www.cnn.com/2017/01/03/opinions/house-ethics-drutman-opinion/

Is this not the same as the "lead from behind" approach that seems to work out well for another recent/current President?

[saintnicster]

To be sure, there may be some who give Trump's Twitter account credit for the course correction. But though it surely had an impact on some of the members, Trump's tweets merely rode the crest of public opinion against the changes, rather than leading it. It is a mistake to give Trump too much credit, just as it is a mistake to take his Drain the Swamp plan seriously.

http://www.cnn.com/2017/01/03/opinions/house-ethics-drutman-opinion/

And to point out another act of copying, the article also references the then Democratic party wanting to "drain the swamp" too.

Both parties failed on both issues, for now

[dbacksfan 2.0]

And to point out another act of copying, the article also references the then Democratic party wanting to "drain the swamp" too.

Both parties failed on both issues, for now

That was Cruella Pelosi that claimed the need to "Drain The Swamp"

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/06/AR2006100600056.html

[patric]

Trump will ask Congress, not Mexico, to pay for border wall

http://www.cnn.com/2017/01/05/politics/border-wall-house-republicans-donald-trump-taxpayers/

[Red Arrow]

Trump will ask Congress, not Mexico, to pay for border wall

http://www.cnn.com/2017/01/05/politics/border-wall-house-republicans-donald-trump-taxpayers/

Congress can get Mexico to pay.

[saintnicster]

Trump will ask Congress, not Mexico, to pay for border wall

http://www.cnn.com/2017/01/05/politics/border-wall-house-republicans-donald-trump-taxpayers/

Already planning on increasing the deficit! Don't people at least pretend that they won't be creating debt?

[heironymouspasparagus]

They warned us that if a majority of Americans voted for Hillary Clinton, we would get historic corruption in Washington.

They were right!

[Conan71]

They warned us that if a majority of Americans voted for Hillary Clinton, we would get historic corruption in Washington.

They were right!

Well played, H!

[cannon_fodder]

In the last 24 hours Trump has:

- again denied all US intelligence agencies in favor of believing a wanted man and Vladimir Putin and makes up reasons why... but it sounds so truthy!  Why is he asking Twitter about US intelligent reports that he has access to and for which he can literally summon the author and ask questions?  Oh right, propoganda purposes.
http://www.cnn.com/2017/01/05/politics/intel-report-says-us-identifies-go-betweens-who-gave-emails-to-wikileaks/index.html

- again used his twitter in an attempt to interfere with private enterprise (this time Toyota moving a plant from Canada to Mexico)

- advised all US political ambassadors they will be terminated immediately so the spots can be filled with Trump donors (the customary allowance for family circumstances, emergencies, or ongoing business have been revoked)

- pushed to defund Planned Parenthood's sexual health services (abortion is already not funded by Federal Law).  So we decrease abortions by refusing to provide birth control...  (the Planned Parenthood thing is a political obsession)

- formally admitted that the US will pay to build a border wall that experts say won't do much to address the actual issue (but we will totally get paid back). He now refers to the border wall as "the Great Wall (for sake of speed),"  ignoring both the fact that the Great Wall failed to keep out invaders and that typing "for the sake of speed" was far longer than just typing "border wall."

- took time to mock Arnold Schwarzenegger's "Apprentice" ratings and brag about a meeting with the editor of Vogue, he apparently still doesn't have time for answers from intelligence briefings...


Trump has not mentioned year end reports showing
- Unemployment below 5%
- Real wages rising at increasing rates
- Corporate profits up
- Stock markets near record highs
- 2016 saw fewer terror attacks on US targets, far fewer military deaths, etc. etc. etc,

How long after Trump is sworn in before he starts pointing these things out and taking credit?

[Hoss]

In the last 24 hours Trump has:

- again denied all US intelligence agencies in favor of believing a wanted man and Vladimir Putin and makes up reasons why... but it sounds so truthy!  Why is he asking Twitter about US intelligent reports that he has access to and for which he can literally summon the author and ask questions?  Oh right, propoganda purposes.
http://www.cnn.com/2017/01/05/politics/intel-report-says-us-identifies-go-betweens-who-gave-emails-to-wikileaks/index.html

- again used his twitter in an attempt to interfere with private enterprise (this time Toyota moving a plant from Canada to Mexico)

- advised all US political ambassadors they will be terminated immediately so the spots can be filled with Trump donors (the customary allowance for family circumstances, emergencies, or ongoing business have been revoked)

- pushed to defund Planned Parenthood's sexual health services (abortion is already not funded by Federal Law).  So we decrease abortions by refusing to provide birth control...  (the Planned Parenthood thing is a political obsession)

- formally admitted that the US will pay to build a border wall that experts say won't do much to address the actual issue (but we will totally get paid back). He now refers to the border wall as "the Great Wall (for sake of speed),"  ignoring both the fact that the Great Wall failed to keep out invaders and that typing "for the sake of speed" was far longer than just typing "border wall."

- took time to mock Arnold Schwarzenegger's "Apprentice" ratings and brag about a meeting with the editor of Vogue, he apparently still doesn't have time for answers from intelligence briefings...


Trump has not mentioned year end reports showing
- Unemployment below 5%
- Real wages rising at increasing rates
- Corporate profits up
- Stock markets near record highs
- 2016 saw fewer terror attacks on US targets, far fewer military deaths, etc. etc. etc,

How long after Trump is sworn in before he starts pointing these things out and taking credit?

[erfalf]

How long after Trump is sworn in before he starts pointing these things out and taking credit?

Well, he's "not a politician" right, so probably just a shade under when a standard politician would.