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Published: Sat, January 07, 2017
Economy | By Melissa Porter

Mexico's Peso Hammered as Donald Trump Explains "Wall" Policy


Ford Motor has scrapped a planned Mexican vehicle factory and added 700 jobs in MI following criticism by Donald Trump, as the U.S. president-elect turned his attention toward rival General Motors Co with the threat of a "big border tax" over compact cars made in Mexico.

Trump tweeted Thursday: "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S".

Trump tweeted about the cars on Tuesday, threatening a "big border tax" for companies that import vehicles from Mexico, which is now part of the NAFTA trade agreement he has denounced.

"Throughout his campaign and now, after his election, Trump has made it crystal clear that he would prefer that manufactured goods made for Americans be manufactured in the United States", Nerad said.

Toyota says that starting in 2019 its new $1 billion plant in Guanajuato, Mexico, will produce about 200,000 Corolla compact cars a year for the North American market. A new plant in Guanajuato, Mexico, will manufacture Corollas.

Toyota is building a new plant in Guanajuato, Mexico, where its Corolla - which happens to be the best selling auto model in history - will be built.

The center is an independent, non-profit research organization that works with all the major automakers, "You couldn't afford a vehicle that was 100% made in the United States". A reporter had asked Toyoda about it in the wake of Ford's recent decision to deep-six a $1.6 billion Mexican plant following similar criticism by Trump.

Trump's attacks on GM and Toyota came after Ford announced on Tuesday the cancellation of a $1.6 billion investment in Mexico.

"We don't have any plan to move existing plants in the U.S.to Mexico or other countries", Seko added.

Japanese automakers together produced around 1.4 million vehicles in Mexico in the year to March 2016, almost 40 percent of the country's total output.

Swiecki says there could be unintended consequences from a plan to put heavy tariffs on cars made in Mexico coming into America,"Every vehicle sold in the USA that is built in Mexico has about 40% US parts content".

Trump criticising GM had an effect on Ford. The U.S. might gain more jobs simply by negotiating agreements with other countries such as Mexico has.

Consumers paid the price, and so did workers, as the US saw cuts in productivity and jobs. But Nissan and Renault SA CEO Carlos Ghosn told Reuters he was watching the incoming Trump administration closely and would respond to whatever policies it adopts.

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