Market Overview

Toyota The Latest Trump Tweet Target

Toyota The Latest Trump Tweet Target

President-elect Donald Trump sent a clear warning to General Motors Company (NYSE: GM) - build in America or face large border taxes.

Coincidence or not, Ford Motor Company (NYSE: F) announced it will scrap a $1.6 billion investment it had earmarked for a factory in Mexico and will invest $700 million in Michigan.

It was only a matter of time before Trump moved on to the next major auto manufacturer - Toyota Motor Corp (ADR) (NYSE: TM).

Even though Toyota is a Japan-based company, it has a heavy manufacturing presence in the U.S. However, Trump Tweeted Thursday that Toyota won't be allowed to manufacturer cars in Mexico for the U.S. market.

"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S.," the Tweet read. "NO WAY! Build plant in U.S. or pay big border tax."

According to a Bloomberg report, Toyota's factory in Mexico is scheduled to produce its line of Corolla cars in 2019. Toyota President Ako Toyoda told reporters in New York that the company's policy is to continuously find ways of boosting production in the U.S. regardless of the political situation.

Bloomberg also noted that Toyoda will handle its Mexican operations after understanding it better.

Separately, the maker of Subaru vehicles confirmed it has no plans to build factories in Mexico.

Update: Toyota released this statement to Benzinga:

"Toyota has been part of the cultural fabric in the U.S. for nearly 60 years. Production volume or employment in the U.S. will not decrease as a result of our new plant in Guanajuato, Mexico announced in April 2015. With more than $21.9 billion direct investment in the U.S., 10 manufacturing facilities, 1,500 dealerships and 136,000 employees, Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry."


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Posted-In: Ako Toyoda automakers Donald TrumpNews Politics Global Movers General Best of Benzinga

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