Trump claims he stopped Ford relocation

Ford announced on Friday it will keep producing an SUV model in Kentucky, rather than move it to Mexico, in a decision overplayed by President-elect Donald Trump who claimed he had saved an entire plant from closure.

Trump repeatedly took aim at Ford and other groups during the White House campaign for moving production overseas in search of cheap labor -- and Thursday night he announced the firm's U-turn as a personal victory.

"Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky - no Mexico," Trump tweeted.

"I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!" added the Republican -- who won 62.5 percent of that state's popular vote.

Trump's tweets were initially met with derision since Ford had not made public any plans to shift production from Lincoln to Mexico.

Ford on Friday confirmed there was some substance to the claims.

Under last year's contract agreement with the powerful United Automobile Workers union, Ford indeed made plans to move production of the Lincoln MKC out of Louisville to make room for expanded production of its Escape model. The Kentucky plant produces both small SUVs.

The company said in a statement, "Today, we confirmed with the President-elect that our small Lincoln utility vehicle made at the Louisville Assembly Plant will stay in Kentucky." 

"Cuautitlan plant in Mexico was likely the plant for MKC," Ford spokeswoman Christin Baker told AFP.

But the billionaire appears to have significantly overstated the impact of the decision -- on several accounts.

- No impact on jobs -

While Ford confirmed that it was indeed considering moving the one model to Mexico, it certainly had no intention of shuttering the Louisville, Kentucky plant. 

In addition, the decision will have no impact on jobs.

Baker said that employment at the Louisville plant would have held steady regardless of any production changes, in accordance with the four-year union agreement.

According to The Wall Street Journal, the automaker has been in contact with Trump's transition team since his election, and saw the Lincoln move as a relatively painless way to hand him a victory even before he moves into the White House.

But the reversal has no impact on Ford's wider decision -- confirmed earlier this week -- to move production of the Focus to Mexico from Michigan, a state Trump narrowly won in last week's election. 

Ford already produces the Lincoln MKZ sedan in Hermosillo, Mexico, and in early April announced a $1.6 billion investment in a new site in the country.

- Rhetoric swung votes -

One of the main themes of Trump's campaign was to bring back manufacturing jobs that American companies had moved overseas in search of cheap labor. Ford and the IT giant Apple were his favorite targets for criticism for their overseas operations. 

Trump even threatened to impose a 35 percent punitive import duty on cars produced in Mexico, and to renegotiate the 1994 North American Free Trade Agreement (NAFTA).

His rhetoric seems to have resonated since several states where the auto industry is strongly represented and that traditionally voted Democratic, such as Michigan and Wisconsin, voted for Trump, tipping the election in his favor. 

Ford said of its decision on Kentucky, "We are encouraged that President-elect Trump and the new Congress will pursue policies that will improve US competitiveness and make it possible to keep production of this vehicle here in the United States."

The company also defended its record, saying it employs more US auto workers and produces more American-made vehicles than any other firm, has invested $12 billion in US plants in the past five years and created nearly 28,000 US jobs.

"We continue to engage with President-elect Trump's team -- and the new Congress -- as they shape the policy agenda for 2017. We have shared our commitment to continue investing in the US and creating American jobs," Ford said.

Source: AFP