The Strategist

Trump claims he saved a Ford plant in the US

11/18/2016 - 15:42

Donald Trump moved beyond rhetoric in order to justify trust of voters of the State of Kentucky. The US President-elect urged carmaker Ford Motor Company to change direction, and keep production in the United States.

Gage Skidmore
Gage Skidmore
Trump persuaded Bill Ford, Chairman of the company, to abandon an idea to move production from a plant in Lincoln, Kentucky, to Mexico. He is wearing his heart on his sleeve and is exulting at his success. Having finished these complex negotiations, he immediately said about this on his Twitter, and told how much effort it took to turn Ford back to the US side.
"My friend Bill Ford, chairman of Ford just called, and informed me that he will keep the Lincoln plant in Kentucky, will not transfer it to Mexico" - Trump wrote on his page on Twitter social network.
Trump made this step as a sign of gratitude to voters who gave him the most support in the election. Trump also said that he’s been working with Bill Ford in order to save the Lincoln plant in Kentucky. "I was obliged to do so for the great state of Kentucky, for their confidence in me" – commented Trump.
Bill Ford has also changed his attitude, and made a statement that he looks forward to continuing cooperation with the United States. As Reuters reported, citing Head of the automaker, now the plant, together with Trump, will adhere to a common policy to enhance US competitiveness, and to maintain production of this cars in America.
However, Trump called transition of the plant to Mexico full of "ugliness" during the entire election campaign. If this scenario turned out to be realistic, Trump would have threatened Ford with heavy tariffs.
Recall, Ford's management stated in 2015 that the automaker planned to invest $ 2.5 billion in construction of two new plants in Mexico. According to the company’s strategy, this would lead to creation of 3800 new jobs.
Earlier this year, Ford representatives said that the company was going invest another $ 1.6 billion in Mexico to create the production of small cars, due to start in 2018.
Now, Ford has changed the strategy. Not only it is planning to build two Mexican plants by 2019, but to preserve jobs in the United States as well. So, the Kentucky plant in the United States employs almost 10 thousand people, and now there is no question about layoffs.
Meanwhile, Daniel Dale, a journalist of Toronto Star working in Washington, asked on Twitter about what a plant Trump meant. According to him, there were no plans to close Ford’s business in that area.
United States held presidential election on 8 November. Donald Trump, candidate of the Republican Party, won the race. The new US administration headed by Trump will take the office after inauguration of new President on January 20, 2017. During his election campaign, Trump has repeatedly promised to retain production in the United States.