Don't Expect Us to Backpedal on Mexico Plans: Ford CEO

Steph Willems
by Steph Willems

There’s something about billions of dollars in investment and carefully planned long-term product strategies that make it hard for an automaker to turn on a dime in the face of a threat.

Ford Motor Company CEO Mark Fields says his company has no plans to reverse course on its goal of boosting production of cars and components in Mexico, even after President-elect Trump’s promise of a 35-percent tariff on vehicles crossing the Rio Grande.

It’s a game of chicken Ford intents to win.

Speaking after an address at the Los Angeles Auto Show last night, Fields said it’s full steam ahead on the automaker’s Mexico plans. Saying he feels that such a tariff would negatively impact the U.S. economy, Fields implied that Trump’s election promise won’t amount to much.

“A tariff like that would be imposed on the entire auto sector, and that could have a huge impact on the U.S. economy,” Fields said, according to Automotive News. “I continue to be convinced that the right policies will prevail. I think we all share the same objective, which is a healthy and vibrant U.S. economy.”

Certainly, General Motors and Fiat Chrysler Automobiles share a similar strategy, and aren’t in the mood to change it. Earlier this year, Ford invested $1.6 billion to build a Mexican small car assembly plant (where the U.S. market Focus will eventually find a home). A year earlier, the Blue Oval dropped another $2.5 billion on engine and transmissions plants south of the border.

Despite the acrimony between Fields and Trump during the campaign period, the CEO claims Ford is in “constant contact” with the president-elect’s transition team. Fields claims he wishes the new administration well.

There’s plenty of speculation surrounding what the election of Trump means for environmental standards, including CAFE targets, but Ford isn’t paying it much mind. If the 54.5 mile-per-gallon CAFE target does indeed get a haircut, the automaker claims it hasn’t any plans to dial back on its development of electric vehicle technology. The market for such vehicles is far bigger than just the U.S., said Fields.

“When you look globally at European regulations and China regulations it’s really driving toward electrification,” he said.

[Image: Ford Motor Company]

Steph Willems
Steph Willems

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  • Jimmyy Jimmyy on Nov 17, 2016

    Personally, I think Mark Fields is done. Washed up. What a fool. Gets in a shootout with the president elect. Trump is loved in red states, which are the same states where Fords sell well. Fords don't do well in blue states. Imagine the lost sales. Fire Fields.

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    • EChid EChid on Nov 17, 2016

      The article clearly states that GM and Chrysler have the same outlook. So, since we're into generalizations here, does that mean the red states simply can't buy any new cars at all now? Stop being dramatic, people outside of the automotive sector don't care enough about what Mark Fields is saying to pay any attention to him or stop buying their cars.

  • WildcatMatt WildcatMatt on Dec 21, 2016

    In our new post-fact world, I actually think Trump could simply say that he raised the tariff without actually doing anything and people would accept it, regardless of truth or fact-checking.

  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
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