Trump's threat of 20 per cent tax on new cars built in Mexico cause VW, Mazda-Toyota, Volvo, Mercedes-Benz, BMW, Ford to add jobs and expand in U.S.
"Build plant in U.S. or pay big border tax" of 20 per cent added to the price of a new car, said President Donald J. Trump. Auto makers Volkswagen, Mazda-Toyota, Volvo, Mercedes-Benz, BMW, Ford are expanding and adding jobs in America rather than Mexico. Why? Because of President Trump's proposed tax of 20 per cent added to the price of new cars coming from Mexico.
VOLKSWAGEN: today
Volkswagen announced a $340 million expansion at its Chattanooga, Tennessee plant. No estimate was made on the number of new jobs. The German car-maker had already invested $900 million in a plant there:
https://media.vw.com/en-us/releases/998
MAZDA/TOYOTA JOINT VENTURE: March 8th
In a joint venture between Mazda and Toyota, they will spend a total of $1.6 billion to expand their operations to build cars in Huntsville, Alabama. This will create 4000 new jobs.
The Corolla production in Alabama was originally earmarked for a new plant in Mexico.
President Donald Trump criticized Toyota on Jan.5th, 2017 for their plans to build a new plant in Mexico. Within days, Toyota announced plans to spend ten billion dollars in the U.S. over the next five years.
VOLVO: Sept. 25th
Volvo is building its first American auto plant. It will be built near Charleston, S.C. It means 3,900 new jobs. The cost is one billion dollars.
DAIMLER AG (Mercedes-Benz): Sept. 21st
Mercedes-Benz said it will spend one billion dollars to expand in Tuscaloosa, Alabama. No estimates were given about the number of new jobs created.
https://www.daimler.com/company/locations/tuscaloosa/
BMW: Aug. 26th
BMW said it will spend $600 million to created a thousand new jobs in Spartanburg, S.C.
PRESIDENT TRUMP: Jan. 5th, 2017 10:14 a.m.
All the above business activity started with President Trump sending a message over the internet which said “no way” to Toyota’s plans for building new cars in Mexico.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax."
FORD: Jan. 3rd, 2017
On Tuesday, Ford announced it will instead invest $700 million in its Flat Rock, Michigan, plant and add 700 direct new jobs.
Ford decided to cancel its plans to spend $1.6 billion to build new cars in Mexico due to "market demand", said its CEO Mark Fields. Trump had nothing to do with it, said Fields.
Editor's note: President Trump said during his Presidential Campaign that if elected, he would prevent Ford from opening a new plant in Mexico.
FORD: Nov. 17th, 2016
President-elect Trump said, "I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. He will be keeping the Lincoln plant in Kentucky - no Mexico".
Spokeswoman Christin Baker said Ford confirmed with Trump that their "Louisville Assembly plant will stay in Kentucky".
"We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve U.S. competitiveness and make it possible to keep production of this vehicle here in the United States," she Baker.
In 2015, Ford told workers at the Louisville plant will be closed by 2019 and moved elsewhere.
https://www.cnbc.com/2016/11/17/trump-says-ford-not-moving-us-plant-to-mexico.html
FORD: Sept. 15th, 2016
Ford confirmed that all of the company's small-car production will leave U.S. plants and head to Mexico by 2019.
https://www.cnbc.com/2016/09/15/ford-to-move-all-small-car-production-to-mexico-from-us-ceo.html
Editor's note:
