Ford has decided to cancel its car plant that was planned to open in north-central Mexico. This comes in the midst of political turmoil, and it is only natural for people to assume that it was driven by some type of political ideology. The elections most popular candidates, Donald Trump and Bernie Sanders, talked about the problem of American companies leaving the United States in search of cheap labor, which leaves American workers behind.
Trade Agreements and the United States
It is no secret that many states in the US are affected by globalization, which could point to NAFTA and CAFTA. Both of these agreements gave US companies the opportunity to close up shop in this country where unions are abundant and pay is high. These companies moved where they were not bound to certain laws and did not have to worry about medical leave. The new agreement, called the TPP, was going to do the same thing, except it would affect Asian countries. In short, some US companies were looking for ways to stop caring for workers and keep all of the profits.
Many of the Midwestern states were outraged by some of these moves and also devastated by them. Some say that these moves led Flint, which was one of the most prosperous middle-class cities in Michigan, to take a turn for the worst. The city has not recovered since major car companies closed their shops and has been in a state of perpetual financial troubles.
People Gravitated to Politicians who Were Against Trade Agreements
Candidate Bernie Sanders was able to win the states that were most affected by NAFTA and CAFTA, and Hillary Clinton lost these states to Donald Trump. It is clear now, or it should be, that democrats should have stuck with Bernie since he was the only one who stood a chance against Trump and trade agreements.
The American people were tired and ready for leadership that would bring back jobs and stop large companies from leaving the United States. Now, people are looking to Trump to fulfill the promises that he made to this country and bring back all those jobs.
Of course, many are saying this is the reason why Ford is canceling its plan to build a new plant in Mexico.
The Truth About the Plant Cancellation
Ford said that its cancellation has nothing to do with politics. The company was scraping the plant due to supply and demand. The Ford Focus, one of its light vehicles, is not in high demand. Sure, there is a good number of people still looking for eco-friendly vehicles, but the number is relatively small compared to the number of Americans who have not caught on to this trend. It should also be noted that since gas prices are dropping, people are opting for larger vehicles, which is having an impact on sells.
The company has decided to produce the Focus at an existing plant in Mexico and will invest money in another existing plant in Michigan. At this U.S. based plant, autonomous, electric, and hybrid vehicles will be made. This will bring 700 jobs to the hungry industry.
Ramifications of Ford’s Move
Still, the news spread like wildfire throughout Mexico, and many plant workers are blaming Donald Trump for snuffing out hope. Mexico has been a financially depressed country for some time. Many residents of this country were counting on Ford’s new factory as a source of income. Sure, the employees at this plant would not be guaranteed paid medical leave or support nor were they going to have safe working conditions, but that did not matter. Money is too scarce in this country for these types of issues to matter.
It is clear that countries like Mexico are depending on larger and more stable countries for support. There are many questions that are hard to answer, like the following:
- Should the United States support others?
- Does the US need to stop exporting jobs since its financial struggling?
- Should countries deal with their own problems on their own?
- Do American companies need to take a profit cut for the sake of the country?
The Trump Situation
It should not be surprising why many are looking to Trump and saying that he had something to do with this move. The move will bring jobs back to the United States, and Trump might take credit for it, even though he had nothing to do with it. The truth is that it has more to do with what is reported by the news and the people of this country. More and more people are threatening to boycott companies that are thinking of leaving the country.
Now, it would only be speculation to say that Donald Trump is going to start take credit for every job that is kept in the US, which remains to be seen, but there is possibly two cases where Trump took credit for something he did not do. Trump said that he was instrumental in persuading the air conditioning plant, Carrier A.C., from moving jobs to Mexico, but it seems this might not be the case. He also supposedly took credit for keeping a Ford plant in Kentucky that the company was not even planning to move to Mexico.
Ford’s move has nothing to do with Trump, but it does have something to do with the American people and the values that are becoming vital in this country.