U.S. President-elect Donald Trump threatened to impose a hefty tax on Toyota Motor it if builds its Corolla cars for the U.S. market at a plant in Mexico. Bobbi Rebell reports.
U.S. President-elect Donald Trump taking to Twitter again, lashing out at Toyota for plans to build its Corolla cars for the U.S. market at a plant in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. Trump's tweet confused Toyota's existing Baja plant with the planned $1 billion plant in Guanajuato city. Baja produces around 100,000 pick-up trucks and truck beds annually. The plant in Guanajuato will build Corollas, and have an annual capacity of 200,000 when it comes online in 2019. Toyota, which announced its plan to build the new Mexican facility in April 2015, said it would not take away from U.S. employment. Nick Colas of Convergex: SOUNDBITE: NICHOLAS COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH) SAYING: "It's unclear what, on any given day, what he's gonna target, whose he's gonna target. You can get the general sense of the theme, so you understand carmakers now, we get that. Ford has been in his cross hairs, so has General Motors, now Toyota, and he is really focused on that cross-border trade with Mexico, so you clearly know now we're gonna see the themes, but, any individual day, could be any stock in the system." U.S. automakers, General Motors and Ford, have been slammed by Trump for building cars in lower-cost factories in Mexico. Succumbing to President - elect's pressure, Ford is already scrapping plans to build a $1.6 billion assembly plant south of the border. Toyota said it will wait until after Trump's January 20th inauguration before deciding whether to make any changes.