President Obama once mocked Donald Trump for acting as if he had a “magic wand” to create American jobs, but the president-elect appears to have cast a spell on the auto industry. Toyota has become the car company to announce a massive capital investment in the U.S. thanks to Trump’s warnings about heavy border taxes.
“Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax,” Trump tweeted on Thursday.
Just like that, Toyota North America chief executive Jim Lentz announced at the Detroit auto show that Toyota will spend $10 billion over the next five years on its facilities in the United States.
“We are all in favor of what he is attempting to do,” Lentz said. “We have to run our business as a global business. I have to make sure that we are competitive.”
Within the last week, both Ford and Fiat Chrysler have announced similar maneuvers to avoid Trump’s promise of a beefy border tax, effectively preventing thousands of American manufacturing jobs from getting outsourced to Mexico.
“It’s finally happening – Fiat Chrysler just announced plans to invest $1 BILLION in Michigan and Ohio plants, adding 2000 jobs. This after Ford said last week that it will expand in Michigan and U.S. instead of building a BILLION dollar plant in Mexico. Thank you Ford & Fiat C!” Trump tweeted on Monday.