Don't Expect Us to Backpedal on Mexico Plans: Ford CEO

There’s something about billions of dollars in investment and carefully planned long-term product strategies that make it hard for an automaker to turn on a dime in the face of a threat.

Ford Motor Company CEO Mark Fields says his company has no plans to reverse course on its goal of boosting production of cars and components in Mexico, even after President-elect Trump’s promise of a 35-percent tariff on vehicles crossing the Rio Grande.

It’s a game of chicken Ford intents to win.

Speaking after an address at the Los Angeles Auto Show last night, Fields said it’s full steam ahead on the automaker’s Mexico plans. Saying he feels that such a tariff would negatively impact the U.S. economy, Fields implied that Trump’s election promise won’t amount to much.

“A tariff like that would be imposed on the entire auto sector, and that could have a huge impact on the U.S. economy,” Fields said, according to Automotive News. “I continue to be convinced that the right policies will prevail. I think we all share the same objective, which is a healthy and vibrant U.S. economy.”

Certainly, General Motors and Fiat Chrysler Automobiles share a similar strategy, and aren’t in the mood to change it. Earlier this year, Ford invested $1.6 billion to build a Mexican small car assembly plant (where the U.S. market Focus will eventually find a home). A year earlier, the Blue Oval dropped another $2.5 billion on engine and transmissions plants south of the border.

Despite the acrimony between Fields and Trump during the campaign period, the CEO claims Ford is in “constant contact” with the president-elect’s transition team. Fields claims he wishes the new administration well.

There’s plenty of speculation surrounding what the election of Trump means for environmental standards, including CAFE targets, but Ford isn’t paying it much mind. If the 54.5 mile-per-gallon CAFE target does indeed get a haircut, the automaker claims it hasn’t any plans to dial back on its development of electric vehicle technology. The market for such vehicles is far bigger than just the U.S., said Fields.

“When you look globally at European regulations and China regulations it’s really driving toward electrification,” he said.

[Image: Ford Motor Company]