Credit Risk: Trump’s false accusation of a Ford plant closure – New York Daily News
Throughout this year’s presidential primaries and general election, President-elect Trump repeatedly criticized companies for moving factories, production and jobs to Mexico. He specifically called out Ford Motor Company for a plan to move automotive production and jobs there and threatened to impose a 35 percent tariff on those vehicles. This shows a misunderstanding not only of the actual facts in the Ford plant case, but of how tariffs work.
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Certainly, Ford did itself no favors in September when company President and CEO Mark Fields remarked on CNN and in a statement that, long-term, Ford would move all small car production to Mexico with an unclear message about why and how there would be no net loss of American production and jobs. This announcement also may have had an effect on the political winds in the Rust Belt, and particularly in Ohio and Michigan, two states intertwined both with presidential cycles and the auto industry in equal measure.
The confusion came to a head when Ford announced this week that the auto giant would not move Lincoln MKC production from its Louisville, Kentucky assembly plant to Mexico, seemingly at odds with its own best business interests. This decision, in turn, gave President-elect Trump enough ammunition to close out this little automotive and political passion play.
Trump hit the Twitter machine Thursday night, claiming credit for turning around Ford Motor Company’s plans to ship production and jobs off to Mexico. Trump’s tweet, identical to his misleading narrative begun earlier this year, implied that Ford’s entire Louisville Assembly Plant – he incorrectly called it a “Lincoln” plant – was under threat of closing with jobs leaving. He then claimed credit for saving the plant and the jobs therein.
This was, and is, untrue.