Toyota is latest Trump aim over Mexico prolongation plans

DETROIT — President-elect Donald Trump has lerned his sights on Toyota in his latest bid to pester a association into building a products in a U.S. rather than Mexico.


Trump tweeted Thursday that if a Japanese automaker goes forward with skeleton to build a compress Corolla in a new bureau in Mexico instead of a U.S., it faces a “big limit tax” when it ships a cars north.

The hazard echoed those targeted during Ford Motor Co. and General Motors Co. Trump has regularly threatened Ford with a 35 percent taxation on tiny cars done in Mexico, and this week he called out GM for importing cars from south of a border. He also has done identical threats opposite companies outward a automobile industry.

Nearly all automakers build tiny cars in Mexico to take advantage of reduce wages. Consumers generally compensate reduce prices for tiny cars, creation it formidable to cover aloft labor costs in a U.S.

Trump’s twitter wrongly settled a plcae of Toyota’s new Mexican plant — it’s Guanajuato, not Baja — though he’s scold in observant that Toyota has skeleton to build a Corolla in Mexico. The automaker announced a new bureau in Apr of 2015, observant it will emanate 2,000 jobs.

FILE – In this Aug. 2, 2011 record photo, people travel by a automobile on arrangement during Toyota’s Tokyo, Japan, headquarters. President-elect Donald Trump has lerned his sights on Toyota in his latest bid to pester a association into building a products in a U.S. rather than Mexico. Trump tweeted Thursday that a Japanese automaker skeleton to build a bureau in Baja, Mexico, to build a compress Corolla. He warned a association to build a plant in a U.S. or compensate a large limit tax. (Shizuo Kambayashi, File/Associated Press)

Corolla prolongation is to start in 2019 with a new indication and would be changed from a bureau in Cambridge, Ontario. Toyota also would keep building Corollas during a U.S. bureau in Blue Springs, Mississippi. The Ontario plant will build some-more higher-priced midsize vehicles.

Toyota Motor Corp. didn’t directly respond to Trump’s taxation threat, though pronounced Thursday in a matter that prolongation and practice in a U.S. will not diminution due to a Guanajuato plant. Toyota pronounced it has invested over $21.9 billion in a U.S. operations, including 10 prolongation facilities, 1,500 dealerships and 136,000 employees.

Toyota President Akio Toyoda pronounced Thursday in Tokyo that a automaker is not now deliberation changes to a prolongation plans. He pronounced he would like to see a incoming Trump administration as “an opportunity” for a company.

“I don’t know nonetheless accurately how, but, regardless of who becomes president, a business is about being good corporate citizens,” Toyoda pronounced in response to a reporter’s doubt during a entertainment of a Japan Automobile Manufacturers Association. “And by apropos good corporate citizens, we are confronting a same idea of creation America strong. And so we will continue to do a best.”

Honda President Takahiro Hachigo also pronounced during a Tokyo entertainment that his association has no designed prolongation changes in Mexico.

On Tuesday, Ford announced that it had scrapped skeleton to build a new $1.6 billion small-car bureau in San Luis Potosi, Mexico, and will instead deposit some of that income in a U.S. bureau nearby Detroit that will build new electric and unconstrained vehicles. But Ford still skeleton to change prolongation of a compress Focus to Mexico by adding it to an existent bureau that builds midsize cars. In announcing a Michigan expansion, Ford CEO Mark Fields remarkable Trump’s guarantee to make a U.S. some-more rival by obscure taxes and easing regulations.

Just hours before Ford’s announcement, Trump used Twitter to burst on General Motors, melancholy a association with a limit taxation for creation Cruze tiny cars in Mexico and shipping them to a U.S. GM responded by observant a immeasurable infancy of Cruzes are done during a plant in Ohio. The association pronounced it sole a tiny series of Mexican-made sedans and about 4,500 hatchback Cruzes in a U.S. final year. In total, GM sole about 189,000 Cruzes in a U.S. in 2016.

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Associated Press author Yuri Kageyama in Tokyo contributed to this report.

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This story has been corrected to uncover that Toyota announced skeleton in Apr of 2015 to build a new bureau in Mexico.

Copyright 2017 The Associated Press. All rights reserved. This element might not be published, broadcast, rewritten or redistributed.


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