Mexico Responds To Ford's Decision To Scrap Its New Plant

[Right_in_Virginia]

Mexico Responds To Ford's Decision To Scrap Its New Plant
Zero Hedge, Jan 3, 2017, Tyler Durden

Mexico "regrets" Ford's decision to scrap the plan to build a plant in the central Mexican state of San Luis Potosi, the Economy Ministry said on Tuesday, adding that it has made sure Ford will reimburse any costs and expenses from the state government to facilitate the now defunct investment.

In a surprising statement on Tuesday at 11am ET, in an act of goodwill toward the president-elect, the second largest U.S. automaker said it will scrap the $1.6 billion factory in Mexico and will invest $700 million at a Michigan factory, after President-elect Donald Trump had harshly criticized the Mexico investment plan.

The Mexican ministry said that jobs created in Mexico have contributed to maintaining other manufacturing jobs in the U.S. that would have disappeared to Asian competition.

Meanwhile, Mexico vowed to maintain its commitment to making Mexico a competitive nation to attract investment, and reiterated its commitment to modernizing NAFTA in a way that strengthens competitive capacity of North America.

It may find roadblocks in that regard if Trump follows through with his threat to build a "great, big wall" between the two nations.


http://www.zerohedge.com/news/2017-01-03/

[Right_in_Virginia]

In a surprising statement on Tuesday at 11am ET, in an act of goodwill toward the president-elect, the second largest U.S. automaker said it will scrap the $1.6 billion factory in Mexico and will invest $700 million at a Michigan factory

 :thumbsup3:

[Frank Cannon]

Screw you Mexico. You have done nothing to control the cartels, insane floods of your people heading to the US and the drinkability of your water. You can all go straight to hell.

[TomSea]

Some small car building is going or will remain in Mexico, I didn't read the whole article.

[Oceander]

Pretty effing stupid.  Why is it people who claimed to hate it when Obama extorted businesses are now cheering when Trump extorts businesses?  There is only one word for that:  hypocrites.

[corbe]

   Sure seems like picking 'Winners and Losers' v2.0 to me.

[NavyCanDo]

Some small car building is going or will remain in Mexico, I didn't read the whole article.

Ford Fusions are still manufactured in Mexico and will continue to be. If you were to listen to Trump you would think Ford is bring everything back..

[Frank Cannon]

Pretty effing stupid.  Why is it people who claimed to hate it when Obama extorted businesses are now cheering when Trump extorts businesses?  There is only one word for that:  hypocrites.

Where's the extortion here? Ford can build whatever they want whenever they want. Looks to me that Ford looked around and observed that a large number of their potential customers were tired of supporting 3rd world hellholes.

Top notch Donny. You have created more jobs before you even became President than that sissy bedwetter Evan McMuffin  bothered to talk about on the stump.

[dfwgator]

Screw you Mexico. You have done nothing to control the cartels, insane floods of your people heading to the US and the drinkability of your water. You can all go straight to hell.

The Lily-White Euro Mexican Elite want to dump Mexico's indigenous population on the US.

[CSM]

Ford Fusions are still manufactured in Mexico and will continue to be. If you were to listen to Trump you would think Ford is bring everything back..

The reality of this news is that Ford just canceled their capacity expansion plan.  That should make us all very nervous!  Ford's current capacity in NA is approximately 2.6M units, they were going to expand that by 1.0M and would have had a new capacity of 3.6M.  The cancellation of the new plant means that their plan is is to remain at 2.6M units (they may get growth of .2 to .3M with added shifts or other actions.)

I see this being celebrated, but it should be sounding alarm bells for us all.   It is actually a sign that the top economic forecasters are looking at a reduction in the auto industry around 2018.5 -2020.  The auto industry is often the leading edge for the rest of the economy.  This means that we are looking at a recession just before the 2020 election! 

I would never claim to be able to see into the future, so I don't know the severity of it.  However, we do know that the banks are in bad shape and that we have been pumping the market into a bubble with constant QE's.  It could lead to a big one!

[InHeavenThereIsNoBeer]

I would never claim to be able to see into the future, so I don't know the severity of it.  However, we do know that the banks are in bad shape and that we have been pumping the market into a bubble with constant QE's.  It could lead to a big one!

I recently finished reading "This Time is Different", which is a study of the history of financial crises.  One point made was that banking crises are always preceeded by a housing bubble (or I may have that backwards, maybe it's housing bubbles always end in a banking crisis).  So I checked the CS index and sure enough, we were just above the peak 2007/2008 levels.

[dfwgator]

Some small car building is going or will remain in Mexico, I didn't read the whole article.

"Hey, hey, we're Adobe!
The little car that's made out of clay!
We're gonna save you some money
that you can spend in some other way!
Hey, hey, we're Adobe!
Hey, hey, we're Adobe!
Adobe!"

[Wingnut]

"Hey, hey, we're Adobe!
The little car that's made out of clay!
We're gonna save you some money
that you can spend in some other way!
Hey, hey, we're Adobe!
Hey, hey, we're Adobe!
Adobe!"

[jpsb]

The Lily-White Euro Mexican Elite want to dump Mexico's indigenous population on the US.

Yup that is what is really going on.