Donald Trump threatens Toyota


The U.S. President-elect Donald Trump put on twitter yesterday 5th of January, his threat against the Japanese auto maker Toyota, that it would face big tariffs if it went ahead with its plans to build a new car manufacturing plant in Mexico as announced in April 2015.

Toyota Motors said will build a new plant in Baja, Mexico, to build Corolla cars for US. NO WAY! Build plants in US or pay border tax.

Two days before this, the U.S. President was furious with the American auto maker General Motors GM for importing cars from Mexico. To be precise it’s because GM had been sending Mexican made model of Chevy Cruze to US car dealers tax-free across border.

GM in defense made it clear that the cars made Mexico were destined to its international market.
This whole event made Ford which was also affected somehow, cancel its plans of building a new plant in Mexico. It invested $700m and added 700 jobs at its plant in Michigan instead.

In response to Trump’s tweet, Toyota said that its owing a Mexican plant will have no effect on its current US production or employment, as it already has 10 manufacturing plants in the US. In addition, Toyota pledged to collaborate with the incoming Trump administration.

Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry


This new path embarked on by Trump however, did not sit well with the general director of trade group, American Chamber of Commerce of Mexico José Maria Zas.

Car factories in the U.S. could not survive without integration with Mexico, because of competition from China, from India, from Europe, from Korea….. But these types of actions change the whole structure of the relationship between the U.S. and Mexico


Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. The company was founded by Kiichiro Toyoda in 1937, as a spinoff from his father’s company Toyota Industries to create automobiles. Toyota is the world’s market leader in sales of hybrid electric vehicles, and one of the largest companies to encourage the mass-market adoption of hybrid vehicles across the globe. Cumulative global sales of Toyota and Lexus hybrid passenger car models passed the 9 million milestone in April 2016.

In March 2014 the multinational corporation consisted of 338,875 employees worldwide and, as of February 2016, was the 13th-largest company in the world by revenue.

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