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  • What's Trump got to say about this one?


    Ford to build the Focus in China instead of Mexico




    by Chris Isidore @CNNMoney
    June 20, 2017: 4:10 PM ET



    Ford Executive Chairman: We need to be quicker


    Ford will shift production of the Focus compact car from the United States to China. And in a first for the automaker, it will ship many of these cars back to the U.S. to sell.

    But the move is more bad news for Mexico than it is for the United States. While the Focus has been built at the Michigan Assembly plant in Wayne, Michigan for years, Ford (F) had previously announced plans to shift its production to Mexico. Ford (F) wants to make room for larger, more profitable vehicles at the Michigan plant, which employs 3,600. The factory won't lose any jobs as a result of the move.

    Ford will start building its new small pickup, the Ranger, in 2018, after the Focus moves to China. In 2020, it will build the new Bronco, the SUV model it is bringing back, at the Michigan plant.

    Related: Ford offers buyouts to 15,000 factory workers

    Ford also said Tuesday that it will invest $900 million in its Kentucky truck plant to build the new versions of the Ford Expedition and Lincoln Navigator, there. It said that investment would protect 1,000 jobs at that plant.

    But the company's decision to shift production of small cars to Mexico became a hot-button issue during last year's presidential campaign, when then-candidate Donald Trump repeatedly attacked the company' for exporting jobs from the United States. He even falsely accused Ford of planning to shift all of its auto production and jobs to Mexico.

    In January, Ford announced that it had canceled plans to build a new plant in Mexico to build the Focus. Trump heralded that as a victory, even though Ford said it would still build the Focus in Mexico, just at an existing plant.

    When asked about Ford's move Tuesday, White House press secretary Sean Spicer deferred to Commerce Secretary Wilbur Ross, who did not criticize the automaker.

    "The Ford decision shows how flexible multinational companies are in terms of geography," Ross said in a statement. "I believe that as President Trump's policies and reforms take hold, more companies will begin to locate their facilities in the U.S."

    Ford's plan to shift the Focus to China is a sign of the weak demand for small cars in the United States and of the growing importance of China, which is the largest autos market in the world. U.S. sales of the Focus are down 20% so far this year.

    Related: Why Ford fired its CEO


    China also is a very inexpensive place to make cars. Ford estimates it will save $500 million a year by building in China rather than at the Mexican plant it had been looking at.

    "Building in China [for the U.S. market] will become more common," said Michelle Krebs, senior analyst for AutoTrader. "The small car market has fallen far more than any one anticipated. Ford needed to find a low-cost way to produce them. They're already making the Focus in China. This just made sense."

    Ford is under great pressure to cut costs to shore up the billions of dollars it needs to invest in electric cars and self-driving vehicles. It recently announced plans to trim $3 billion in annual costs, including plans to cut 1,400 white collar jobs, and replaced its CEO.

    Ford already makes the Focus at two different plants in China.

    Only two other cars are currently built in China and exported to the United States -- the Buick Envision, and the Volvo S60 Inscription. But neither of those cars were ever built at a U.S. factory. The Envision has only been built in China, which is General Motors' largest market. And Volvo does not have a U.S. plant yet. That automaker, once owned by Ford, is now owned by Chinese automaker Geely.

    --CNN's Jeremy Diamond contributed to this story.
    - See more at: http://money.cnn.com/2017/06/20/news....5Lb6Pdpu.dpuf
    "Hey Giants, who's your Daddy?"

  • #2
    60, no one can say Trump isn't trying to work on jobs. But quite honestly it will be more of the same. Job growth? Yes, but there were 75 consecutive months of job growth under Obama. Were they 'good' jobs or 'bad' jobs??? Who's to say; but you don't hear that there was job growth. Trump will do what he can by twisting an arm here and twisting an arm there but the gov can only do so much. No matter what they say. If taxes were absolutely zero companies would be ion the US. If taxes are raised 50% they will leave.
    Ford is doing what is best for Ford. Is it best for the US? If it is best for Ford then yes they will do what is best for US. If it isn't best for Ford then they won't do what is best for US. I chuckle when jobs are announced but nothing is said when they are lost. Nike announced a number of job cuts; Sears announced 200+ store closings which is bound to result in job losses but you don't hear that from Washington.
    Wait until next year is a terrible philosophy
    Hope is not a strategy
    RIP

    Comment


    • #3
      Originally posted by NoDakIggle View Post
      60, no one can say Trump isn't trying to work on jobs. But quite honestly it will be more of the same. Job growth? Yes, but there were 75 consecutive months of job growth under Obama. Were they 'good' jobs or 'bad' jobs??? Who's to say; but you don't hear that there was job growth. Trump will do what he can by twisting an arm here and twisting an arm there but the gov can only do so much. No matter what they say. If taxes were absolutely zero companies would be ion the US. If taxes are raised 50% they will leave.
      Ford is doing what is best for Ford. Is it best for the US? If it is best for Ford then yes they will do what is best for US. If it isn't best for Ford then they won't do what is best for US. I chuckle when jobs are announced but nothing is said when they are lost. Nike announced a number of job cuts; Sears announced 200+ store closings which is bound to result in job losses but you don't hear that from Washington.
      Of course I don't have the answer, but technology is putting a lot of people out of work. Amazon is probably doing a number on jobs too. Too tell you the truth it seems like Sears was mismanaged for the last 35 years. They screwed me so bad 30 years ago that I never went back. They were advertising nationally "Sears Service is our#1 priority". It took them 8 weeks to finally install my screen door that I ordered from them and then I was stupid enough to go back there a few years later and try to buy a snow blower. That story would take 2 beers and a half hour to tell you but when I got to the end you would spit your beer out laughing! Oh yeah, I forgot to tell you about my table saw that I dropped off to have repaired and they lost it. Fuck'em
      "Hey Giants, who's your Daddy?"

      Comment


      • #4
        Oh I know what you are talking about. I got sooooo pissed at Sears about 12 years ago I thought I would lose my mind. My son followed suit about 10 years ago and I was afraid he was going to explode he was so pissed. If he could have thrown a fridge on the managers head he would have. Sears is, and has been, irrelevant in the retail industry for a number of years.
        My point was that they announced many closings but there isn't a peep about the job losses. The same with Nike. And I thought I had heard somewhere that Ford was looking to reduce jobs (white collar I believe) by 10%. We will hear from Washington about the gains but little to nothing about losses. It isn't just a Trump thing. It's the way of the world. Just blow smoke about good stuff. Spin everything to make it look good.
        Wait until next year is a terrible philosophy
        Hope is not a strategy
        RIP

        Comment

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