Daily Management Review

Ford ‘Will Be Keeping The Lincoln Plant In Kentucky - No Mexico’: Trump


11/18/2016


Ford abandons its plans of shifting small car production to Mexico



The executive chairman of Ford Motor Co., Bill Ford Jr, told the president-elect of the United States, Donald Trump that Ford Company “would not” shift the Kentucky plant’s production to Mexico. In Twitter post, Trump wrote:
“I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me! He will be keeping the Lincoln plant in Kentucky - no Mexico.”
 
Repeatedly, Ford revealed that there was no “plans” of closing any of its “U.S. plants”. Moreover, the current contract of “United Auto Workers”, expiring in the year of 2019, does not allow Ford to do so. Christin Baker, Ford’s spokeswoman stated that Ford “confirmed with the President-elect that our small Lincoln utility vehicle made at the Louisville Assembly plant will stay in Kentucky.”
 
While, she also added:
“We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle here in the United States”.
 
However, Ford has plans of shifting its “small-car” productions to the “south of the border”. At the Kentucky’s “Louisville assembly plant”, which employs around “4,700 people”, Ford is building the “Ford Escape and Lincoln MKC SUV”. For around eighteen months, Trump criticised Ford on its “Mexican investments”.
 
During Trump’s presidential campaign, he promised that if he is elected then he “would not allow Ford to open a new plant in Mexico”, while it would also pose “hefty tariffs” on any of Ford’s vehicles manufactures in Mexico. In the year of 2015, Ford had said that it had plans of investing “$2.5 billion” for building “two new plants” in Mexico which would provide a total of “3,800 jobs in all”. Furthermore, Ford also informed that in the beginning of 2018, it will invest an additional amount of “$1.6 billion in Mexico” which would be used for its “small-car” production facilities.
 
Last September, Ford even gave a confirmation that its entire “small-car production will leave U.S. plants” to settle for Mexico by the year of 2019, while none of the plants would close, whereby resulting in no loss of jobs. However, in the following month, Bill Ford paid a visit to Trump on the latter’s “extensive attacks on the automaker's investments in Mexico”, while Ford also found Trump’s criticism to be “infuriating” and “frustrating”.
 
 
 
References:
http://www.reuters.com/