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President-Elect Trump: Auto Industry "Finally" Bringing Jobs To US

11 January 2017

Fiat Chrysler CEO Sergio Marchionne listens to a question during a briefing at the North American International Auto show, Monday, Jan. 9, 2017, in Detroit.

Most of the major automakers in the USA have substantial vehicle making operations in Mexico, as well as complex networks of parts makers that supply their factories in the U.S. and support jobs and investment in states such as OH and MI.

For its part, Ford Motors Company, under pressure from Trump, canceled an investment for 1.6 billion of a plant in San Luis Potosí. Mexico is for us a very big market as well.

The Audi plant, the first for the brand in North America, has a production capacity of 150,000 cars a year and employs as many as 4,200 people.

Ford said Monday that it would produce a new pickup and sport utility vehicle in a factory that is losing auto production to Mexico.

Ford said production would be shifted to an existing MI assembly plant, and that it would spend $700 million on US production of an all-electric version of the vehicle. Overall, she said of Trump, "we have much more in common" than areas of disagreement.

The largest United States vehicle makers have production facilities in Mexico, including companies like Mercedes Benz and BMW, which will begin producing cars there in 2018 and 2019 respectively. He gave a TED Talk that's famous within the company as setting in motion the 113 year-old company's current mission of mobility, that in the last year, involved the purchase of commuter van start-up Chariot.

These investments plans in the United States shouldn't be seen as a result of Trump's criticism.

Marchionne wanted to get out the news about adding jobs and investment in the United States in case the company encountered more criticism from Trump, a person familiar with the situation said on Sunday.

Ford's description contrasts Trump's public persona.

Trump has also turned his attention toward General Motoros with the threat of a "big border tax" over compact cars being made in Mexico. Donald Trump kept Ford near the top of his list of companies he would "stop" from taking jobs overseas, along with Carrier and Apple. "If tomorrow morning President-elect Trump decides to impose a border tax on anything that comes up from Mexico, then we'll have to adjust".

Trump has stated he prepares to renegotiate the North American Free Trade Agreement (NAFTA) in between the United States, Canada and Mexico, and actually promised to enforce a 35 percent tariff on vehicles exported to the United States from Mexico.

In November 2016, Macy's CEO Terry Lundgren said he supported the company's decision to discontinue its business relationship with Trump.

"Everybody in this industry is kind of realizing simultaneously [Trump] could be quite good for us", said Joseph Hinrichs, Ford's president of the Americas.

Trump has harshly criticized the trade policies of previous USA presidents, claiming they resulted in millions of job losses in the United States.

President-Elect Trump: Auto Industry