Daily Management Review

Trump thanks Ford and Fiat Chrysler for keeping jobs in U.S.


01/09/2017


US President-elect Donald Trump thanked Ford Motor Company and Fiat Chrysler, which recently announced heavy investments in the US auto industry.



Ninian Reid
Ninian Reid
The day before, on January 8, the company Fiat Chrysler Automobiles NV announced its intention to invest $ 1 billion in modernization of plants in the states of Michigan and Ohio. By 2020, the carmaker intents to release three new Jeep models and move in the US production of heavy pickups Ram, now assembled at Saltillo plant in Mexico.

Previously, Ford cancelled construction plans in the Mexican state of San Luis Potosí in favor of its Michigan plant.

January 3, Trump threatened General Motors Corporation with tax increases in case of refusal to give up US sales of cars produced in Mexico.

"General Motors supplies dealers in the United States with Chevy Cruze made in Mexico, and does not pay taxes at the border. Make in the United States or pay higher border tax" - Trump commented.

January 9, executive director of General Motors, Mary Barra said that the company will not shift production of cars from Mexico to the United States because of Trump’s criticism. According to her, the company has already taken production decisions and made long-term investments in the production, which cannot be undone.

"This is a capital-intensive business with long-term investment on which we made decisions two, three and four years ago", - she said.

According to the Mexican automotive industry association, 80% of all domestically produced cars go to export, of which 86% are exported under the NAFTA in the United States and Canada. Total in 2015, Mexico exported 2.8 million passenger cars (the fourth largest in the world), of which 1.993 million hit in the US. The car industry provides 3.2% of Mexico's GDP, and about 900 thousand jobs.

Over the last decade, car companies, manufacturers of heavy machinery and equipment invested billions of dollars in their plants in Mexico. Just in April 2016, representatives of Ford announced plans to spend another $ 1.6 billion to expand Mexican production facilities to release low-end models. General Motors, in turn, was going to spend on Mexican plants additional 5 billion over the next several years.

source: cnbc.com






Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat