Toyota announces $10 billion U.S. investment days after Trump warning

toyota

Chalk up another win for the president-elect?

Toyota is set to make a $10 billion capital investment in the U.S. over the next five years, Toyota Motor North America chief executive Jim Lentz said during an interview at the Detroit auto show, Reuters reported.

The $10 billion figure matches Toyota’s investments from the previous five years.

The move follows similar commitments to U.S. production made by competitors Ford and Fiat Chrysler.

Donald Trump on Thursday specifically targeted Toyota in a tweet.

“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 Monday morning, Trump lauded Ford and Fiat Chrysler for their recent announcements in a pair of tweets.

“It’s finally happening – Fiat Chrysler just announced plans to invest $1BILLION 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!” he tweeted.

General Motors is becoming China Motors

General Motors is becoming China Motors. Watch and Listen to the candid comments of GM’s CEO.

Americas Dirty War Against Manufacturing (Part 1): Carl Pope

Illustration by Tomi Um

Illustration by Tomi Um

“I’d love to make this product in America. But I’m afraid I won’t be able to.”

My host, a NASA engineer turned Silicon Valley entrepreneur, has just conducted a fascinating tour of his new clean-energy bench-scale test facility. It’s one of the Valley’s hottest clean-technology startups. And he’s already thinking of going abroad.

“Wages?” I ask.

His dark eyebrows arch as if I were clueless, then he explains the reality of running a fab — an electronics fabrication factory. “Wages have nothing to do with it. The total wage burden in a fab is 10 percent. When I move a fab to Asia, I might lose 10 percent of my product just in theft.”

I’m startled. “So what is it?”

“Everything else. Taxes, infrastructure, workforce training, permits, health care. The last company that proposed a fab on Long Island went to Taiwan because they were told that in a drought their water supply would be in the queue after the golf courses.”

So begins my education on the hollowing-out of the American economy, which might be titled: “It’s not the wages, stupid.”

Manufacturing’s share of U.S. employment peaked in 1979 and has since fallen by almost half. Although manufacturing has been a relative bright spot in the dismal economy of the past couple of years, in the last decade, the U.S. lost a third of its manufacturing jobs, with the damage rippling far beyond that base to erode millions of jobs that are dependent on it. Read more of this post

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