Ford Motor targets to build a new auto assembly plant in Mexico which is worth $1.6 billion of investments. But the project which will be offering 2,800 jobs in favor of the Mexicans has alarmed the authorities who are aware of the possible consequences of the move, ABC News reports.
Large international companies that are moving away from the United States to a location promising cheaper production cost resulting to southward movement of jobs has been a major issue in the 2016 U.S. presidential campaign. Donald Trump is one of the individuals who are upset with the behavior of huge companies like Ford.
The business mogul seeking to be elected as the next president of the country slams the car maker for taking advantage of the 1994 North American Free Trade Agreement. In a statement, Trump called the action as an "absolute disgrace," the publication reports.
Ford is said to use the plant in San Luis Potosi state to produce Focus compact and C-Max small gas-electric hybrid cars for lower cost making it more profitable compared in Detroit. But Trump thinks that the car maker will be the only one to benefit from the lower production cost.
"Cheap goods are not cheap when you consider the cost of lower wages and higher unemployment," the business mogul said as per the news portal.
He also warns the large companies that he will rewrite the trade agreement in order to limit them from exploiting the lopsided trade deal.
"These ridiculous, job-crushing transactions will not happen when I am president. NAFTA has incentivized plants to move to Mexico, closing factories across the United States. When I am president, we will strongly enforce trade rules against unfair foreign subsidies, and impose countervailing duties to prevent egregious instances of outsourcing," Trump said in a statement as per Detroit Free Press.
Ford released a statement to defend its name saying it has invested over $10 billion in the U.S. giving 25,000 jobs. Ford's president of the Americas Joe Hinrichs also noted that the move is part of their plan to improve their small-car profitability.
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