Got a job? Under this administration, you’re lucky if you do—and this latest news from one corporation doesn’t bode well for those who don’t.
Ford Motor Company made a major announcement this week, and while it may benefit some job-seekers in Mexico, those in America still standing in line at the unemployment offices are going to be shaking their heads in frustration.
Ford’s chief executive officer, Mark Fields, said earlier this week all small-car production is exiting America, stage right, and heading to Mexico. Why? The costs of production, absent hefty regulatory controls and corporate taxation, are significantly lower across the border. On top of that, Americans’ penchant for SUVs and larger vehicles have pushed small-car sales to the side for now, opening the doors for the market to move elsewhere.
Reuters has the story:
“We will have migrated all of our small-car production to Mexico and out of the United States [within two-to-three years],” Fields said, at a recent investor conference.
Donald Trump, Republican presidential hopeful, reacted with outrage to the news, saying the relocation decision was “horrible” and maintaining the United States “shouldn’t allow it to happen.”
Trump has been a vocal critic of Ford’s tight relationship with Mexico in recent months – though Fields has responded by saying his decisions are based on business realities, and have little to do with personal preferences.
The production announcement wasn’t all that surprising. Earlier in the year, Ford had already put out it would be investing $1.6 billion into Mexico’s economy via small-car production, which is slated to begin in 2018.