Ford and Fiat-Chrysler Agree With Trump’s Call To Build More Cars In The US; Toyota Still Wants Its New Plant In Mexico

Jan 16, 2017 06:40 AM EST | Gerone Trish

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President-elect Donald Trump is currently urging the car manufacturers to start producing in the U.S. Some car companies like Ford and Fiat-Chrysler have agreed with Trump's call but why is Toyota Motor still opting to construct a new plant in Mexico despite huge 35 percent border tax on cars to be exported to the U.S.?

Trump took to his official Twitter account a message for the car manufacturers on Sunday. According to the tweet, Trump urges the car companies to have their production in the country again. The president-elect emphasized that the prerequisite for car manufacturers to continue doing business in the U.S. is by putting up a car plant in the U.S. as well.

The president-elect has been very vocal of his campaign to bring back production of automotive in the U.S. Trump has previously tweeted that Toyota Motor will create a new factory in Baja, Mexico to manufacture cars for the U.S. In the same tweet, the president also expressed he is not accepting this plan and gave two options for the car manufacturer by saying either they can build a plant in the U.S. or they will be required to pay huge border taxes.

In another report, it seems that Trump will make sure that manufacturing in the U.S. will be more beneficial for the car companies as it will get rid of the huge border tax. Automotive News reported that all cars that will be exported to the U.S. which will be produced in Mexico will be required to pay a border tax of 35 percent.

Meanwhile, Trump's campaign urging the car companies to produce in the U.S. appears to gain very positive results. Fiat-Chrysler confirmed its plan to invest $1 billion to create 2,000 jobs at its two factories in the U.S. Toyota has announced to invest $10 billion in the U.S. for the next five years, Los Angeles Times noted.

Furthermore, the publication also mentioned that Ford has already announced its plan to stop construction of a new plant in Mexico. However, the report also said that Toyota Motor has made an announcement that it will not cancel its plan to build its new factory in Mexico.

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