Ford Motor Co. (NYSE:F) plan this week to scrap a $1.6 billion investment in Mexico, after condemnation from Donald Trump, indicates government involvement can be better for industry and it’s better for employment, as per reported by French presidential candidate Marine Le Pen.
To the extent that the employees in this specific case are concerned, the figures indicate otherwise. The US vehicle manufacturer dumping its Mexico plan and in its place using $700 million to grow its domestic operations in Michigan would make only 700 jobs.
Amongst the current debate regarding whether robots are prepared to steal everyone’s jobs, that feels like an alarmingly low amount of new jobs for an investment of such level. And while mechanization might be mainly matched to substituting human hands for bashing, bending, welding and painting metal to manufacture cars, the speed in the production of industrial robots in previous years indicates that it’s not just employees in car plants who should fear the surge of the robots.
The International Federation of Robotics mentioned that the auto industry is “the most significant customer” for industrial robots, purchasing nearly 40 percent of overall worldwide output of the machines. In the initial half of this decade, sales to auto makers have surged at an average speed of 20 percent each year, according to IFR.
Ford stated that Trump’s disapproval of the auto industry moving jobs abroad was not the motivation for its alteration of plans, referring to in its place a decline in demand for the small cars it planned to construct in Mexico. That may or may not be accurate; the firm could barely admit to shifting course due to the tweets of the President-elect.