Friday, January 6, 2017

#Trump Targets Toyota

Trump continues to attack automobile companies for investing in Mexico rather than the United States. Trump's latest target is Toyota. Trump tweeted, “no way” to Toyota’s plans for its proposal to manufacture its Corolla sedan in Mexico. He also suggested that a stiff tariff on Corollas would be imposed a big border tax if they did not follow his 'friendly' advise. Toyota responded by saying,

"Toyota has been part of the cultural fabric in the U.S. for nearly 60 years," the company said in a statement. "With more than $21.9 billion direct investment in the U.S., 10 manufacturing facilities, 1,500 dealerships and 136,000 employees, Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry."

While companies appear to be tolerating this bully tactic, smart money has to wonder but for how long. Capital and investment flows to countries with competitive advantages. Mexico has turned itself into a world class part automotive manufacturer. It would take decades of training, investment, and deregulation for the United States to become competitive. Slapping on border as a means of leveling the paying field for American workers is short-term fix that carries enormous economic consequences.

Headline: Trump Says ‘No Way’ to Toyota Plant in Mexico

DETROIT—Donald Trump blasted Toyota Motor Corp. for its plan to build a new Mexican plant, just hours after the head of the Japanese auto maker signaled a willingness to work with the new administration.

In a tweet, Mr. Trump said “no way” to Toyota’s plans for its proposal to manufacture its Corolla sedan in Mexico and threatened to impose a tariff on imported Corollas.



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