Trump hits Toyota in latest rant against carmakers and Mexico
It was Trump's latest broadside against automakers building cars in Mexico.
In this Dec. 28, 2016 photo, President-elect Donald Trump listens to a question as he speaks to reporters at Mar-a-Lago, in Palm Beach, Fla.
AP Photo/Evan Vucci, File
Washington
U.S. President-elect Donald听Trump听targeted听ToyotaMotor Corp on Thursday, threatening to impose a hefty fee on the world's largest automaker if it builds its Corolla cars for the U.S. market at a plant in听Mexico.
"Toyota听Motor said will build a new plant in Baja,听Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax,"听Trump听said in a post on Twitter.
It was听Trump's听latest听broadside听against听automakers building cars in听Mexico听and first听against听a foreign automaker. The president-elect's attacks on investments by companies in听Mexico听have cast a shadow over cross-border production networks central to more than $583 billion a year in trade between the two countries.
The value of the Mexican peso has skidded amid fears that听Trump's policies would harm Latin America's second-biggest economy -- and declined Thursday after听Trump's tweet.
Toyota, which announced plans to build a new Mexican facility in Guanajuato in April 2015, said it would not take away from U.S. employment.
"Toyota听looks forward to collaborating with the听Trump听administration to serve in the best interests of consumers and the automotive industry,"听Toyota听spokesman Scott Vazin said.
Trump's tweet confuses听Toyota's existing Baja plant with the planned $1 billion plant in Guanajuato, where construction got under way in November. A听Trump听spokeswoman did not return a request seeking additional comment.
Baja produces around 100,000 pickup trucks and truck beds annually. The Guanajuato plant will build Corollas and have an annual capacity of 200,000 when it comes online in 2019, shifting production of the small car from Canada.
The Japanese automaker's American Depositary Receipts fell after听Trump's tweet and closed down 0.6 percent at $120.44 on the New York Stock Exchange.
Toyota听President Akio Toyoda said in Japan on Thursday that the automaker has no immediate plans to curb production in听Mexico, preferring to wait until after听Trump's Jan. 20 inauguration before deciding whether to make any changes.
"We will consider our option as we see what policies the incoming president adopts," Toyoda said at an industry gathering in Tokyo on Thursday before听Trump's tweet, when asked whether his company was considering any changes to a production plant the automaker was building in听Mexico.
Automakers in the United States have been slammed by听Trump听for building cars in lower-cost factories south of the border, which he said costs American jobs. Pressure to curb that production intensified this week after Ford Motor Co scrapped plans to build a $1.6 billion assembly plant in听Mexico听after听Trump听harshly criticized the investment.
Ford, however, still plans to shift production of small cars to听Mexico听from Michigan, even as it uses $700 million from the planned听Mexico听investment to expand its operations in Flat Rock, Michigan, and add 700 jobs.
During the campaign,听Trump听criticized barriers to U.S. auto exports to Japan and said the U.S. government did not do enough to open the market to more American-made vehicles.
"Until you open your markets, you're not selling any more cars over here,"听Trump听said of Japan in an August 2015 interview with the Detroit News. "That's going to force people to build in the United States."
Toyota听has extensive U.S. investments, operates 10 U.S. plants in eight states and builds more than 1.3 million vehicles in the United States annually.
Between 1994 and 2013, U.S. auto factory jobs dropped by a third while jobs in听Mexicorose almost five-fold over the same period as lower-wage production boomed.
Mexico听now accounts for 20 percent of all vehicle production in North America and has attracted more than $24 billion in auto investment since 2010, according to the Ann Arbor, Michigan-based, Center for Automotive Research.
Based on current investment plans,听Mexico's auto production capacity will grow by another 50 percent over the next five years, according to the center, which draws funding from the auto industry.
It said听Toyota听imported fewer vehicles from听Mexico听than any other major automaker building cars there last year. Detroit's Big Three automakers collectively exported more than 1.1 million vehicles to the United States from听Mexico听in 2016, while听Toyota听sent about 47,000 Mexican-made vehicles to the United States.
Trump听has also said General Motors Co could become subject to tariffs on听Mexico-made cars for the U.S. market, and that he would like to renegotiate terms of the North American Free Trade Agreement signed with Canada and听Mexico, or scrap it altogether.
Trump听criticized GM for importing Mexican-made versions of the Chevrolet Cruze, even as the automaker is laying off 1,200 workers in Ohio this month who assemble the car.