Toyota shares fall after Trumps threat on Twitter
Washington. The car-maker Toyota shares fall after the newly elected president of the United States, Donald Trump, has threatened the company with duty and high taxes. Trump has a tweet turned his anger against Toyota, because the Japanese automaker will open a new car plant in Mexico.
The future president, who joins on January 20, has in his election campaign promised that he would create jobs back to the US. Toyota Motor will build a new factory in BAJA, Mexico, to build Corolla cars to the United States. Forget it! Build a factory in the US or pay high limit tax, he wrote.
Donald Trump has probably misunderstood how Toyota will open the new factory. The carmaker already has a plant in the Mexican state of Baja California, which borders the United States. Toyota has announced that the plan is to build a new plant in another region of Mexico, which is expected to begin production of 2019. Trump also imprecations against other automakers.
Tuesday, Ford announced that the company dropper to build a new factory in Mexico to 11.5 billion. Instead, Ford will invest five billion kroner in expanding an existing plant in the US state of Michigan. The announcement came just hours after President-elect threatened to introduce a “high limit tax” for General Motors Corporation,
which produces some of the car company Chevrolet Cruze cars in Mexico. General Motors sends Mexican-made models of the Chevy Cruze across the border to US car dealerships. Get them manufactured in the US or pay a high limit tax, it was said in a tweet from Trump.