Donald Trump celebrates Ford investment in US, no immediate effect on India and EcoSport though

A recent tweet by Donald Trump on Ford USA investing money suggests there will be more vacancies for locals and outsourcing would reduce. But does this mean that exports from developing countries like India will take a dip?

By: | Updated: March 28, 2017 10:24 PM
The Ford EcoSport Platinum Edition has a touchscreen infotainment system which was missing from its lineup for a considerable time

The Trump Government has been enforcing the reduction of outsourced manpower as well as resources since it came to power in the United States of America. This has resulted in considerable investments in all sectors of the most powerful country in the world. A recent twitter update from Donald Trump's official handle suggests that Ford USA would be investing in three of its manufacturing plants in Michigan, US. Trump, through his social media handle has duly taken credit for this with 'JOBS! JOBS! JOBS!' being the sole driver of the tweet. Ford Motor Company confirmed the investment at $ 1.2 billion.

The tweet by Trump though fumed a number of followers and their responses were rather aggressive and ended up with Donald Trump being made fun of. Along with the $ 700 million investment announced in January, today's announcement brings the total investment to $ 1.9 bn in the last three months. Although, Ford confirmed the $1.2 billion investment today, a report in The Detroit News claims that roughly half of the total $ 1.9 billion was planned since 2015. Ford, however denied sharing any information with any party regarding this investment before issuing the official statement today.

Another lofty yet hollow claim by Trump?

Based on the information available on The Detroit News and some tweets in response to Trump's official tweet, it seems that Ford's investment isn't driven solely by Trump's push to lower outsourcing and increase local manufacturing in the interest of jobs in the US. Like most politicians, Trump seems to be portraying that it's because of him that jobs are being created in the US. In addition, it seems unlikely that Ford must have planned such a huge investment within a short span of a few weeks after Trump becoming the President.

 

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Will this affect India, particularly the EcoSport?

It won't. The current generation of the Ford EcoSport is being locally manufactured and exported to other countries including Europe. This move by the American carmaker at its home soil will not affect the compact SUV as it will continue to be made in India and exported abroad under the 'Make In India' programme. The new jobs would result in new innovation centres that would focus on autonomous and electric vehicles, which is the way forward for all four-wheelers in the rising need of the environment concerns. In fact, Ford was one of the first companies to produce a fully electric car, the Ford EV1, as a pilot project in select cities in the United States of America. The company later pulled the plug on it and bought the cars back from its customers in the 'interest' of its stakeholders who were major oil and gas industry players.

 

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