close

Trump’s approach appears to pay off … this time around

4 min read
article image -

We’ve criticized Donald Trump – and been criticized for it – when his bluster has been counterproductive or even downright dangerous, so it’s only right to credit him when his tough talk appears to have done some good.

The cause and effect can be debated, but the facts are these: Trump has been highly critical of Ford Motor Co.’s plan to build a $1.6 billion factory in Mexico, calling it an “absolute disgrace.” According to a Reuters story, he repeatedly claimed during last year’s election campaign that he would not allow Ford to open the plant across the border and would hit the company with heavy tariffs on vehicles coming north to the United States.

On Tuesday, lo and behold, Ford announced that the plan for the Mexico plant has been deep-sixed, and the company will instead spend $700 million to retool a Michigan plant to make new electric, hybrid and autonomous cars.

Reuters quoted Ford CEO Mark Fields as saying the move was, in part, a result of declining sales of small and medium-sized vehicles such as the Focus and Fusion, and the need to “fully utilize capacity at existing facilities.”

However, it should be noted that Fields also spoke positively about what he called the “pro-growth” tax and regulatory vision of Trump and Republicans who hold a majority in the U.S. House and Senate.

“This is a vote of confidence for President-elect Trump and some of the policies he may be pursuing,” said Fields.

While Ford officials said their decision on the Mexico plant was influenced by Trump’s policy proposals, they said there were no negotiations between the company and the president-elect.

But Ford Executive Chairman Bill Ford Jr. noted that he spoke with Trump to advise him of the move.

Trump was less well-received, at least initially, by the folks who run another of the major automakers, General Motors. He threatened on Tuesday to impose a “big border tax” on GM for making Chevrolet Cruze models in Mexico. According to a report on the TechCrunch.com website, GM responded that all Cruze sedans sold here are made at a factory in Ohio, and that nearly all of the Cruze hatchbacks made in Mexico are sold in countries other than the United States.

So, maybe the president-elect should back off on his criticism of GM and focus on another target that deserves attention: U.S. companies, such as Southpointe-based Mylan, that reincorporate overseas in order to avoid paying some U.S. taxes. If those companies want to do business here, and reap the advantages that come with operating in the United States – which, in Mylan’s case, includes doing lucrative business with the federal government – they should not be permitted to dodge what should be their fiscal corporate responsibilities, and we would hope that the new president, in concert with members of his party in Congress, will crack down and close this “inversion” loophole, or impose hefty penalties on companies that choose this route.

And returning to the area of transportation, we would implore Trump and his GOP partners to launch a major program to rebuild this country’s crumbling roads and bridges. Perhaps the Republicans in Congress will be more amenable to such an effort now that they won’t have to worry about President Obama getting any credit for it.

Operating from a bully pulpit is not always a bad approach, as long as the end goals are beneficial.

Being bombastic and unpredictable could be a recipe for disaster in the handling of foreign affairs, but there just might be times when it is useful. Our hope is that President Trump will develop a better sense of when to deploy these tactics.

CUSTOMER LOGIN

If you have an account and are registered for online access, sign in with your email address and password below.

NEW CUSTOMERS/UNREGISTERED ACCOUNTS

Never been a subscriber and want to subscribe, click the Subscribe button below.

Starting at $3.75/week.

Subscribe Today