Category Archives: Automotive

Trump attacks on Mexico plants sets ominous tone

Automotive News -Donald Trump hasn’t even taken the oath of office yet. But already he is roiling the auto industry by expanding his long-running attacks on importers beyond the usual target, Ford Motor Co. — first to General Motors over Mexican production of the Chevrolet Cruze and then to Toyota Motor Corp. over a plant it’s building south of the U.S. border.

Ford’s Mexico move is about production efficiency

Automotive News – On the surface, Ford Motor Co.’s decision to scrap a $1.6 billion Mexican plant and invest $700 million in Michigan is a public relations victory. It makes peace with the incoming Trump administration that repeatedly berated Ford on the campaign trail. But in reality, the decision has more to do with good business practices — namely, using plant capacity and coping with a drop in demand for small cars — than any tariff threat or aggressive tweets from the president-elect.

The real reason Ford ditched plans for Mexico plant

Washington Post – Analysts say Ford’s decision to ditch plans to build a Mexico plant stemmed more from its long-term goals than the new administration or devotion to U.S. workers. The company aims to invest $4.5 billion in electric vehicles by 2020.

Ford cancels plans for $1.6 billion small car plant in Mexico

A Ford dealership in the United States.
A Ford dealership in the United States.

By Christina Rogers and John D. Stoll / Wall Street Journal

Ford Motor Co. said Tuesday it is scrapping plans for a new $1.6 billion assembly plant in Mexico, instead choosing to build small cars in an existing Mexican factory, and invest $700 million in a Michigan facility that will build electric vehicles.

The move is a surprising turnaround for Ford after facing criticism by President-elect Donald Trump for more than a year in relation to its Mexico plan.

Last month, Chief Executive Mark Fields said it was looking to work with the incoming administration on Trump’s trade agenda, but indicated it was too late to change its specific plan to build a new factory in Mexico.

The announcement comes just hours after Trump criticized Ford rival General Motors Co. for sending some of its Chevrolet Cruze production from Mexico to U.S. dealerships and paying no taxes. Trump has used the auto industry as an example of why the North American Free Trade Agreement needs to be retooled.

GM counters Trump on claim Chevy Cruz built in Mexico

Tech Crunch – On Tuesday morning, Donald Trump tweeted that the Chevrolet Cruze sold in the U.S. is being manufactured in Mexico and sold tax-free via dealers across the border in the U.S. GM responded to the claim with a statement clarifying exactly where it makes the Cruze it retails in the U.S., which it turns out is primarily in Ohio.

Electric-car startup to manufacture in Arizona, Sonora

Arizona Daily Sun – A California startup will build a $700 million plant in Casa Grande to manufacture luxury electric vehicles. The plan by Lucid Motors will involve having at least some of the parts built in Mexico and shipped to Arizona for final construction.

Ford going ahead with moving production to Mexico

Reuters – Ford Motor Co is moving ahead with plans to shift production of small cars to Mexico from Michigan, while “two very important products” will be built in its U.S. factories, Chief Executive Officer Mark Fields says. President-elect Donald Trump has criticized Ford for the decision to shift production of Focus small cars to Mexico in 2018, and said he would consider levying tariffs on Mexican-made Fords.

Small cars, not U.S. job, moving to Mexico

CNBC – Before Donald Trump takes to the debate stage Wednesday night for one last chance to prove U.S. trade policy is letting Mexico steal Michigan and Ohio’s auto jobs, he might want to do some research on manufacturing trends in the global auto industry.

Mexico’s biggest and fastest-growing carmakers aren’t American brands like Ford and General Motors’ Chevy. The biggest Mexican carmaker is Nissan, and the newest plants belong to Audi and Kia, with big BMW and Toyota plants in the pipeline.

Surging small-car market is Mexico’s other auto success

Automotive News – It’s not just the wages. There’s another motivation for automakers flocking to Mexico to build small cars that would be tough to build profitably in high-wage nations like the U.S., Japan and Germany: the booming local market.

Mexico’s auto market is enjoying an 18 percent gain in new-vehicle sales through September, on top of 2015’s sales gain of 19 percent, breaking all volume records. And the meat of the market is small cars.