Ford Authority

What Now? What Does A Trump Presidency Mean For Ford?

You may recall that President-elect was anything but kind in his treatment of Ford Motor Company throughout the course of his campaign for the White House.

For more than a year, Ford has been a scapegoat of sorts for Mr. Trump, the candidate blasting the automaker repeatedly for its plans to invest in Mexican manufacturing. The Ford Fiesta subcompact, Ford Fusion mid-size (and its “MKZ”-badged Lincoln stablemate), and several engines for the North American market are already produced south of the US border. As recently as September, Ford announced that all North American small-car production would be shifted there in 2018.

That, plus the $4-billion-plus in investments required, had President-elect Donald Trump threatening to impose a punitive tariff on Mexican-made Ford parts and vehicles imported to the US, and promising to renegotiate or repeal the North American Free Trade Agreement. Further, the prospect of Trump enacting the Trans-Pacific Partnership – another trade agreement between 12 nations along the Pacific Rim – seems scant, the result being that Ford and its rivals may have to rethink many of their future investment plans.

And then, there will be indirect consequences of a Trump presidency, as well. Fortune reports that Trump’s election could threaten consumer confidence, particularly as the news of his victory creates market instability in the US. The market did indeed react negatively to the news of Trump’s election victory in the late hours of last night, the Dow Jones Industrial tumbling some 800 points, but it has since rebounded. Only time will tell what the longer trend will be.

For now, it would be foolish to sound the alarm; investors seem┬ásurprisingly bullish at the present, despite last night’s tumultuous tumble, and plenty of roadblocks lie between President-elect Donald Trump and a renegotiation or repeal of NAFTA. That said, last night’s surprising election results have put us on alert. We’ll be watching Mr. Trump’s actions in the White House closely.

Aaron Brzozowski is a writer and motoring enthusiast from Detroit with an affinity for '80s German steel. He is not active on the Twitter these days, but you may send him a courier pigeon.

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