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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle



Ford Move Reversed, A Victory for Trump

President-elect Donald Trump seems to believe he did a great service to American autoworkers by persuading Ford Motor company to keep its Lincoln plant in Louisville, Kentucky, and not moving its production to Mexico. Trump made a post to twitter saying, “Got a call from my friend Bill Ford, chairman of Ford, who advised me that he will be keeping the Lincoln plan in Kentucky—no Mexico.”

The reality of the situation goes deeper, however. Ford had stated that it was transferring the production of small Lincoln sports vehicles to Mexico, not that it was moving its entire plant. Although the decision has since then been reversed, in its entirety it had no effect on the jobs of American autoworkers.

The decision was made simply to keep the mix of products at the Lincoln plant, which is responsible for the production of the Ford Escape, some smaller S.U.V.s, and the MKC. Since Ford took a few hits of criticism from Trump during his campaign in regards to the move to Mexico, the choice to keep the MKC at the Kentucky plant could only be seen a move toward political peace.

Trump’s promise to protect manufacturing jobs won him the vote of many workers in Michigan, Ohio, and Kentucky. To further persuade working-class American’s, Trump took to twitter again stating, “I worked hard with Bill to keep the Lincoln plant in Kentucky. I owe it to the great state of Kentucky for their confidence in me.”

This post, like the previous one, overplays certain facts. One of them being that Ford said it made its decision before Trump spoke with Bill Ford that Thursday. Another fact is that the Lincoln plant in Kentucky isn’t solely responsible for just Lincoln vehicles. The MKC and Escape are only a small percent of the cars that are being made by the plant.

During his campaign, Trump openly attacked Ford’s choice to move some of its production to Mexico, and even had the idea to tax the company 35 percent for every car imported into the U.S. from Mexico. However, Ford continues to stress that the movement of the MKC to Mexico would have no impact on American jobs whatsoever. In fact, the Escape alone would be enough to keep the Kentucky plant open.

On Friday, Ford spokeswoman, Christine Baker stated, “We are encouraged the economic policies he will pursue will help improve U.S. competitiveness and make it possible to keep production of this vehicle here in the U.S.”

The idea behind moving the MKC to another plant for production follow’s Ford’s initial plan to increase the production of the Escape, which has been geared toward 2018. Since the beginning of this year, Ford has made over 300,000 Escapes and 37,000 MKCs. The Louisville plant operates on three shifts and employs over 4,700 workers. This means cars are being produced daily. Normally, most auto plants run with two shifts. This is considered to be full capacity for the plant, which would then lead to, at most, 250,000 cars a year. So far, Ford seems to be ahead of the game. 

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