Ford Fights Back Against Trump Debate Claims
September 27 2016 - 11:50AM
Dow Jones News
Ford Motor Co. went on the defensive following the latest
attacks from Donald Trump aimed at the auto maker's big-dollar
Mexico investments and production plans.
Employees of the Dearborn, Mich., company, including
high-ranking engineers, took to social media platforms—including
Facebook and Twitter—with statistics that defend the company's
reputation as an American company during and after Monday's
presidential debate. A graphic that some employees sent out claims
Ford invested $12 billion in U.S. plants and "created nearly"
28,000 jobs in the past five years. Others circulated stories
written by Detroit media outlets highlighting Ford's contributions
to the U.S. manufacturing sector.
Mr. Trump has for most of his campaign used Ford's Mexico
investment as a key pillar in his attacks of the North American
Free Trade Agreement and as a way to highlight the decline of the
U.S. manufacturing base. While Ford has been touting its plan to
invest $1.6 billion in new Mexican production capacity, it has only
recently taken Mr. Trump on directly. Its recent response included
a round of television interviews and other media engagements
conducted by Chief Executive Mark Fields.
"We shared the facts about Ford's U.S. jobs and investment," a
Ford spokeswoman said.
The Republican nominee once again singled out Ford on Monday,
mentioning the company in opening comments he made during his
debate with Democratic nominee Hillary Clinton. He noted Ford's
decision to take small car production from Michigan and move it out
of the country reflects a broader move to Mexico and lower cost
countries by U.S. manufacturers.
The United Auto Workers union, representing tens of thousands of
Ford's U.S. hourly workers, has long criticized Ford and other U.S.
auto companies for moving jobs outside of the U.S. The union has
opposed Nafta and argued that auto makers need to look for other
ways to cut costs other than offshoring jobs.
Last week, UAW President Dennis Williams said he agreed with Mr.
Trump's proposal to hit companies like Ford with a 35% tariff on
cars built in Mexico, but questioned whether a president would
actually have authority. Mr. Williams also said it is unclear what
impact tariffs would have on the U.S. economy.
Mr. Williams said Ford's decision is "frustrating" because the
union signed a contract with Ford last year "that can make them
money."
Ford employees and executives have recently pointed out the
company will back-fill small car production in Michigan with
higher-profit SUVs and pickup trucks. But the company has been slow
to outline specific product plans as it continues to negotiate with
union officials, and state and local officials on tax breaks and
labor terms.
The company said it is currently hiring 488 professionals.
Still, Ford is following a broader industry rush to Mexico in
recent years. Several auto makers, including General Motors Co.,
Volkswagen AG and Toyota Motor Co., have set aside billions of
dollars to upgrade or build new factories.
In the U.S., auto makers have generally upgraded or expanded
facilities in recent years, but they have been reluctant to build
new facilities.
Ford and the Detroit auto makers have been key topics in
presidential elections dating back to 2008, when GM and Chrysler
were running out of money and requesting bailouts from Washington.
In 2012, auto maker bankruptcies and recoveries were highlighted as
successes for the Obama administration.
Ford didn't file for bankruptcy protection, but instead relied
on debt raised during former Chief Executive Alan Mulally's tenure
and certain government loans to keep it afloat.
The Ford Focus, one of the cars moving from Michigan to Mexico,
already contains less than 50% U.S. materials content, according to
the 2016 National Highway Traffic Safety Administration's American
automobile labeling act reports.
Christina Rogers contributed to this article
Write to John D. Stoll at john.stoll@wsj.com
(END) Dow Jones Newswires
September 27, 2016 11:35 ET (15:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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