Toyota Stocks Dip After Trump Tweet on Planned Mexico Plant
- Author: Joey Payne Jan 09, 2017,
Jan 09, 2017, 0:47
Shares of Toyota Motor fell more than 3 per cent on Friday after Trump threatened to impose heavy taxes on the automaker if it builds its Corolla cars for the United States market at a plant in Mexico.
Already a growing list of USA companies canceled plans to build manufacturing plants in foreign countries and have announced plans to re-invest in the good ol' United States of America. 'Build plant in U.S. or pay big border tax'.
With more than $21.9 billion direct investment in the US, 10 manufacturing facilities, 1,500 dealerships and 136,000 employees, Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry.
Trump has said he plans to renegotiate the North American Free Trade Agreement between the United States, Canada and Mexico, and has vowed to impose a 35 percent tariff on cars exported to the United States from Mexico.
Trump's tweet on Toyota echoed those targeted at Ford Motor Co. and General Motors Co.
Until then, the company's official statement says that Toyota "looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry".
Mexico's economy ministry, in an apparent reference to US President-elect Donald Trump, has rejected any threats made to deter companies from investing in the country.
Earlier this week, Trump had turned up the heat on General Motors for its decision to send Mexican made Chevy hatchbacks to US.
- In 2015, Toyota exported more than 160,000 USA -built vehicles to 40 countries, helping to establish the U.S.as a global export hub.
In a lighter moment for Toyota, people take pictures of the Concept-i at CES International on Wednesday in Las Vegas.
"No, we're not going to be raising tariffs". The company plans to create 700 jobs in the state in its quest to build more electric and self-driving cars. Nissan chose Mexico decades ago as the site for its first assembly plant outside Asia, and previous year produced 830,000 cars at its two factories there.
Most mysterious is the question, why single out two models in a country that supplies around 2 million cars and light trucks a year to the United States (where total sales last year were 17.5 million, a record)? Although it is still planning to shift production of small cars to Mexico from MI.