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The attack of Trump Ford and GM is already beginning to have consequences

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Donald Trump in a file photo.

The president now Donald Trump has not ceased to attack the motor industry of your country, Ford Motor Company is the main affected by the angry comments and threats of the controversial businessman, now turned to politics. Although many specialists have cried out for the inconsistency of the arguments of Trump against the factories that brands have in Mexico, this has not ceased to announce retaliation against those companies, threatening to impose high taxes, entry to vehicles imported from Mexico.

The repeated threats of Trump have not fallen on deaf ears, and Ford has confirmed this week that cancels the project for the construction of a new factory in ground mexican, valued at $ 1,600 million. Instead, it will invest approximately half of that amount in Michigan, as part of the estimated 4,500 million dollars provided for in the plan of electrification of its range by 2020.

Ford just revealed the cancellation of the project in Mexico after having submitted this plan, which already included an important package of measures for its facilities in Michigan. do you Really have it annulled the project of the factory or just have been delayed? and most importantly, the money that they thought to allocate to the factory’s mexican actually went to Michigan or that item was already covered in your new plan of electrical 2020.?

Without forgetting the screw prior to Trump with regard to the production of the Lincoln MKC, which had already been previously decided not move to Mexico, but even so, Trump sold it to their followers as a victory of yours.

Coincidentally, the same time Ford revealed the cancellation of the project of the new factory, Trump changed for the first time your goal and this time he has targeted against General Motors, and by what we see without having the most minimal information.

On this occasion, and, as always, on Twitter, Trump has launched a direct attack on General Motors for the Chevrolet Cruze manufactured in Mexico, threatening to impose a deposit tax of customs to these. What they told Trump and that doesn’t seem to know their advisers is that of the tens of thousands of units that General Motors exports each year, precisely the Cruze from Mexico are a minority, a number so low that it is almost anecdotal for a market like the north american.

The Cruze in its variant sedan and the most successful in north America is assembly plant in Lordstown, Ohio, while the hatchback version is only manufactured in Mexico. The sales of the latter are very low and not sufficient to justify a new production line in Lordstown, hence that last year were imported from Mexico 4.500 Cruze hatchback.

A ridiculous figure for a manufacturer like Chevy, that manufactured in Lordstown most of 319.000 Cruze sedan only in 2016, and more if we compare it with other models that also arrive from Mexico, such as near 80,000 units of the Chevrolet Trax that were sold last year.

That Trump would use the Cruze arrived from Mexico as an example just goes to show the misinformation that handle and his cabinet. Interestingly, the CEO of GM, Mary Barra, is one of the named by Trump to the council to form employment.

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Entrance of the factory in Lordstown.

it is Not casual nor is it that the factory in Lordstown has made cuts in his third work shift in the past few months, is the perfect breeding ground to be able to paint the scenario that tries to exploit Trump, a company cut jobs in the united States at the same time that brings vehicles from the outside.

The Cruze hatchback it serves us as an example to understand the real need of the factory-the mexican for the larger us corporations. a controversial topic since the own Roger Moore leaped to fame with his first documentary, “Roger & me”, in the decade of the eighties.

In Mexico really only manufactured models of small size, those who sell less in north America and who have a profit margin smaller. The best selling models in the USA are still the pick-ups, led by the F-Series of Ford and its popular F-150, models that are only manufactured in a u.s. territory.

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Chain assembly of the Cruze hatchback mkI in Russia.

For these models, factories mexican are the table of salvation. Not to be cost-effective, these factories, these models simply disappear, leaving the free market to other models such as the japanese or koreans. A model like the Cruze hatchback, with less than 1,000 copies per month, would be more cost-effective to remove it than to try to make it on american soil.

The question we ask is, after the motor industry what Trump will be charged against the rest of the industries that manufacture in other countries?, the list could be endless if we try to enumerate all the large north american corporations that manufacture their products in China or any other country. Where is manufactured the smartphone of Donald Trump.?

What is for sure is that many manufacturers, as we believe that it is by Ford in these moments, to try to follow the game to the “new big boy on the patio”, into believing that it is getting away with it for a short time that going to be, and it will not be surprising that step, try to make some revenue. It would be no surprise if within a few years we hear talk of a “new project” factory of Ford in San Luis Potosí, Mexico.

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