It looks President-Elect Donald Trump is already having an effect on the economy before he is ever even sworn into office. Some claims about companies moving operations back to the US due to Trump were a bit unfounded.
However, it looks like Ford is actually citing Trump as the reason they are planning on investing back in Michigan.
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Ford’s CEO, in an interview with CNN Money, has announced that the company will invest $700 million in a new Michigan auto plant, moving some of it’s proposed $1.6 billion investment in Mexico back to the United States. President-Elect Trump’s ‘pro-business’ environment was cited as a major deciding factor in the move.
According to the CNN Money report:
Ford is canceling plans to build a new plant in Mexico. It will invest $700 million in Michigan instead, creating 700 new U.S. jobs.
Ford (F) CEO Mark Fields said the investment is a “vote of confidence” in the pro-business environment being created by Donald Trump. However, he stressed Ford did not do any sort of special deal with the president-elect.
“We didn’t cut a deal with Trump. We did it for our business,” Fields told CNN’s Poppy Harlow in an exclusive interview Tuesday.
The $700 million investment will go to the Flat Rock, Michigan plant to produce more electric and self-driving cars. Ford believes electric vehicles will outsell gas-powered vehicles within the next 15 years…
…The news is a major U-turn for Ford. Last year, the company announced it would invest $1.6 billion in Mexico to transfer production of the Ford Focus from Michigan to Mexico to save costs. Now the Focus will be built at an existing plant in Hermosillo, Mexico, and Ford will instead expand its plant in Michigan.
“This is a vote of confidence” in Trump and the economy, said Fields. We are “encouraged by pro-growth policies, particularly reform around tax and regulatory policies.”
The announcement will likely be seen as a major win for the Trump administration as the billionaire businessman promised to enact policies that would bring American companies back to the United States during the presidential campaign. Trump tweeted a link to a Fox News story about the announcement.
Critics of Trump have accused the President-Elect of utilizing crony-capitalism to accomplish this goal.
Here is the full video of the Fields interview with CNN Money: