Amid President Donald Trump’s single-minded focus to be the ultimate TOTUS (Tweeter of the United States), he’s also become one heck of a car spokesman. Pre-empting even Ford Motor Company (NYSE:F) itself, the leader of the free world took to letting the nation know that Ford had a “big announcement” in 140 characters or less.
When Ford had the podium, it revealed a $1.2 billion investment across three Michigan factories that would create “JOBS! JOBS! JOBS!”, as Trump put it in his tweet — 130 jobs to be exact. As of this writing, F stock is up 2.3%.
Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!
— Donald J. Trump (@realDonaldTrump) March 28, 2017
Ford’s planned investment in Michigan includes $200 million to build a data-storage center, and $150 million for a plant that builds pickup trucks and SUVs.
The company’s $200 million investment into data will see the build-out of its second data-storage center, while its $150 million will help rebuild a factory that will pump out new pickup trucks at a factory in Wayne, Michigan.
This $150 million adds on to the $700 million the company announced in 2015.
While Trump may be using his stature and prolific platform to suggest that he is to thank for the creation of jobs, Ford previously had outlined its plan with the United Auto Workers union in 2015, allocating the other $850 million for use way back then.
Still, Ford is strengthening its U.S. brand so it can do right by F stock holders and sell more cars. Domestic sales growth is nearing a standstill for the monolithic auto company, which comes after seven years of solid growth. (Ford’s long-term growth of 2.93% compares to its previous 5.6%.) This is why Ford is doubling down on data, as it sees the growth engine that is autonomous and connected cars.
“These announcements encapsulate all that is going on with our business now and in the future,” Ford executive VP Joe Hinrichs said.
Shares of General Motors Company (NYSE:GM) are rallying in lockstep with F stock, as bears pull back from their “peak auto” mantra amid a, yes, stronger jobs market and the highest consumer confidence levels since 2000.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
