Ford Plant Turns 'Cemetery' As Trump Wrenches Mexican Autos
By: The New York Times January 11, 2017
Ford Motor Co's abrupt move to scrap a planned $1.6bn car plant in central Mexico has spooked a network of suppliers who bet on a growing customer base and dramatized the risk that Donald Trump's agenda poses to the country's broader economy.
Many auto parts makers had started to expand in anticipation of Ford's plant in the state of San Luis Potosi, where industry is "easily 70 percent" dependent on the auto sector, said Julian Eaves, managing director of Preferred Compounding de Mexico, a U.S.-owned maker of rubber compounds operating here.
"It's going to have a huge impact on the local community," said Eaves.
The loss to the economy, Eaves calculates, could run into the hundreds of millions of dollars, and maybe even into the billions, over the next five years, as manufacturing, contracting and indirect jobs all fall short of plans. Officials say they are still analyzing the economic impact of the Ford decision.
The hemorrhaging may be just the beginning of Mexico's pain from Trump's vows to shake up trade and bring manufacturing jobs back north when he takes office on Jan. 20.