Ford ended its plan to construct a new $1.6 billion factory in Mexico on Tuesday following harsh criticism from president-elect Donald Trump.
The Ford decision came only hours after Trump spoke harshly against General Motors for importing cars made in Mexico into the United States.
Following much criticism from Trump due to its plans of investing south of the border, Ford announced that it would end its plan to build the new San Luis Potosi plant and instead would invest over $700 million across the upcoming four years to expand a Michigan plant to build self-driving and electric vehicles.
Ford CEO Mark Fields announced that he was hopeful that the policies of Trump would increase the manufacturing environment in the U.S.
Earlier, GM was the latest multinational company to be in the cross hairs of Trump through Twitter with the soon to be president threatening a tariff on imports by GM of its Chevy Cruze model.
Trump through Twitter touted the reversal by Ford. He posted a story by Fox News with the logo of Ford touting the automakers announcement.
In another message on Twitter, Trump said that rather than driving jobs as well as wealth away, the U.S. will become the great magnet of the world for job creation and innovation.
On Tuesday, Ford said it decision would mean 700 more jobs in the U.S. during the upcoming four years. The automaker added that it would continue developing its new Ford Focus at its existing plant in Mexico.
The moves show that Trump, who blamed current trade agreements for eliminating millions of jobs in the U.S., likely will be big figure at the Detroit auto show scheduled for next week, when the industry’s biggest executives from the U.S. gather to touted new models.
At the same time, GM gave a response to the Twitter attack by Trump through a statement that said most of its Cruze models sold in the United State are built in Ohio with only a small number imported.
Of the 190,000 Cruze models sold across the U.S., just 4,500 were made in Mexico, a spokesperson for GM said.
Trump had vowed during his campaign to impose an import duty of 35% on vehicles built in Mexico and has pledged to rip up NAFTA.
Trump claims that NAFTA as well as other trade agreements are the cause of millions of Americans losing manufacturing jobs.