In a stunning reversal, Ford Motor, the nations second-largest automaker, said on Tuesday that it would scrap plans to build a small-car assembly plant in Mexico that Mr. Trump has repeatedly criticized.
Just a few hours earlier, Mr. Trump threatened to impose tariffs on cars made in Mexico by General Motors, the nations largest automaker. His message forced the company to defend itself.
Both developments indicate how Mr. Trump is having an enormous impact on how American car companies run their operations, even before he takes office. They also illustrate that one of Mr. Trumps particular points of criticism, manufacturing in Mexico, has become particularly sensitive.
In a move that highlights the shifting landscape of global auto production, Ford Motor said Tuesday that it would build its next-generation small car in China rather than in the United States or Mexico.
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Last year, the company said it planned to shift Focus production to a plant under construction in Mexico, primarily because of lower labor costs. But Ford canceled the project in January after it met stiff opposition from President Trump, who had repeatedly criticized the company for investing in Mexican jobs at the expense of American ones.
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At the same time it announced its Chinese plans, Ford said it would invest $900 million in a Kentucky factory to add production of revamped versions of its full-size Ford Expedition and Lincoln Navigator S.U.V.s. The investment will preserve about 1,000 jobs at the Kentucky plant, Ford said.