Part of the surprising victory by Donald Trump was from his support in “Rust Belt” industrial Midwest states by appealing to blue collar workers with a view to bring jobs back to America. For the 2018 model year, Ford is planning to import copies of it’s $10,000 Indian-built Ford Ecosport into the U.S. This is in addition to Ford sending production of smaller vehicles to Mexico for production. Donald Trump has claimed that he supports a 35% tax on cars produced in Mexico, shipped back to the U.S. for sale, as an incentive to encourage U.S. production of all automobiles.
All of this suggests future trade battles with the new administration. Ford defends itself claiming that no jobs have been lost by exporting production outside the U.S. Ford claims that no American workers have lost jobs, but have been put on production of higher priced larger vehicles that sell for higher profits in the U.S. market.
While the Ecosport only sells for a hair over $10,000 in India in Indian Rupees, Ford will likely sell the vehicle for twice that price here, partly to cover shipping costs, partly because of greatly increased prices to meet all American vehicle safety and pollution standards. But, Ford’s good management and profitability skills did avoid the same bankruptcy or money woes that both GM and Chrysler faced in the early days of the Obama Administration years.
Ford will feel that it’s business practices and ability to earn profits by importing vehicles is it’s right, while the incoming Trump Administration will likely attempt to support it’s new trade views.