Donald Trump's policy is already starting to take effect on businesses in the United States even before his first day in the Oval office. In a surprising announcement on Tuesday, Ford Motor Company stated that the company had moved to cancel its $1.6 billion project to build an assembly plant across the border in Mexico.
The project had been circulating in the news for a while when President-elect Donald Trump was a candidate on the campaign trail. Trump at the time heavily critiqued large corporations that were shifting jobs out of the country for cheap labor in other countries.
The unexpected move from Ford is being celebrated by the Republican party as a win for Trump's policy. In addition to the sudden changes, the company had also planned to move the assembly of small cars to its plant after completion. However, as the President-elect camp celebrates, analysts are warning that the announcement is not as big a success as the party had claimed. Ford Motors had not completely scrapped its plan to ship small cars out of the country; it could still be shifted, just into an existing Ford plant in Hermosillo, Mexico.
Ford Motor bringing back jobs to Michigan
Additionally, the company's sudden change of plan will bring back many jobs to the US and will have cash to fund its budget.
Ford plans to develop its infrastructure in the United States with an oversight into the future. The Ford plant in Flat Rock, Michigan will be extended and provide more jobs for the American people. Ford will also move its new battery base to Michigan. The decisions made by the Ford Motor Company will bring in a significant influx into the domestic market.
Donald Trump's policy forced Ford's operation back to the USA
The key reason for the sudden change, according to Ford, was the sales behavior in the US market. Research conducted shows that more people are opting for Sports Utility Vehicles, crossovers, and light trucks. And the demand for small passenger cars has steadily declined over the last few years.
The president of the company stated that they had taken the market sentiment along with the intended policy changes from the Trump administration into consideration.
The Donald J. Trump effect caused Ford to make an about turn; it will keep the production of its best-selling models within the US borders while shifting its slower selling and older models to the overseas market.
