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Concerns over Ford Motor's decision to move production to China
US Trade Representative Robert Lighthizer told a panel of US senators that he was "troubled" by a decision of the Detroit's Ford Motor Company to move production to China.
Ford's plan suggests China could play a much larger role in future vehicle production for North America, perhaps declipsing Mexico as a low-cost manufacturing source.
The mid-2019 shift from Mexico to China, is to save the company $500 million in reduced tooling costs, Ford said, Reuters reported.
"This is a business decision to improve profitability and deliver even better small cars to customers in a way that makes business sense," said Ford spokeswoman Kelli Felker.
Ms Felker said no US hourly workers would lose their jobs as a result of Ford's decision.
US President Donald Trump campaigned on promises to win better terms for US workers in international trade, and has accused both China and Mexico of unfairly competing with US industries.
Automaker Tesla said separately that it was exploring the possibility of establishing a Chinese manufacturing plant.
Said Mr Lighthizer: "If it happened for reasons that were non-economic, then I think the administration should take action."
But he did not clarify what he meant by "non-economic reasons" or what would legitimately trigger presidential action against Ford.
"I find that very troubling," Mr Lighthizer said. "It doesn't necessarily make sense to me."
Ford's plan suggests China could play a much larger role in future vehicle production for North America, perhaps declipsing Mexico as a low-cost manufacturing source.
The mid-2019 shift from Mexico to China, is to save the company $500 million in reduced tooling costs, Ford said, Reuters reported.
"This is a business decision to improve profitability and deliver even better small cars to customers in a way that makes business sense," said Ford spokeswoman Kelli Felker.
Ms Felker said no US hourly workers would lose their jobs as a result of Ford's decision.
US President Donald Trump campaigned on promises to win better terms for US workers in international trade, and has accused both China and Mexico of unfairly competing with US industries.
Automaker Tesla said separately that it was exploring the possibility of establishing a Chinese manufacturing plant.
Said Mr Lighthizer: "If it happened for reasons that were non-economic, then I think the administration should take action."
But he did not clarify what he meant by "non-economic reasons" or what would legitimately trigger presidential action against Ford.
"I find that very troubling," Mr Lighthizer said. "It doesn't necessarily make sense to me."
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