Auto industry’s relationship with Trump takes dramatic turn
FLAT ROCK, Mich. — The auto industry’s relationship with President-elect Donald Trump took a dramatic turn Tuesday as Ford Motor Co. decided to shift investment dollars targeted for Mexico to the U.S., while Trump threatened General Motors with a tax on some imported small cars.
Ford is cancelling plans to build a new $1.6 billion factory in San Luis Potosi, Mexico, and will instead invest some of that money in a U.S. factory that will build new electric and autonomous vehicles.
Ford said last spring it would move production of the Ford Focus small car to the new plant from Michigan. Trump repeatedly criticized the plan, and Ford was among the companies he threatened to hit with a 35 per cent tariff on products made in Mexico and exported to the U.S.
Trump added General Motors to that group Tuesday, saying in a tweet that the Cruze small cars GM makes in Mexico and sends to U.S. dealers could face “a big border tax!”