Defying campaign promises Donald Trump made that automobile companies could face import taxes for vehicles imported from Mexico, several American companies are planning to expand into Mexico, according to The Wall Street Journal. WSJ reported that Rexnord, which produces industrial bearings, has plans to close a factory in Indiana where 350 people are employed. Its operations would be transplanted to Mexico.
Headquartered in Milwaukee, Rexnord contends that transplanting to Mexico will save the company $30 million a year. “Rexnord is one of many companies that plans to invest in Mexico despite Trump’s promises to pressure companies to maintain their assembly lines in the United States,” read the WSJ article.
Heavy equipment manufacturer Caterpillar and steelmaker Nucor, whose directors form part of the board that advises Donald Trump on industrial and trade policies, are staying put in Mexico. Caterpillar plans to retain its investment ambitions for Mexico and will move some of the company’s jobs from Illinois to Monterrey in Mexico's Nuevo Leon. A spokesperson for the company said that Caterpillar has been downsizing its workforce around the world to maintain its viability “in the longest recession in our 92-year history.”
North Carolina-based Nucor is beefing up is expansion in Mexico, having allied itself with JFE Steel of Japan, to build a new plant in Mexico to manufacture steel for the automotive industry. Manitowoc FoodService is planning to close its soft drink dispenser factory in Indiana, where 80 jobs are at risk. In August 2016, plans to move operations to Mexico were announced.
Yet another company moving south of the border is electronics maker CTS Corp. It plans to close its Indiana plant operations in mid-2018 and relocate to China, Mexico and Taiwan, a spokesman for the company said.
Other companies following suit are:
Walmart, which recently announced a $300 million investment in Mexico that will include new distribution centers. Walmart's chief for Mexico, Guilherme Loureiro said that the investment will creat 10,000 jobs in Mexico;
Home Depot stated that it will continue to open stores in Mexico and invest over $24 million;
BMW -- a German company that has a plant in Alabama -- said that it is going forward with the opening of a plant in San Luis Potosí in 2019, where it will assemble its Series 3 vehicles.
Michelin – a French tiremaker -- said that it will invest $510 milliones in a plant to be built in Leon, Guanajuato State.