Fiat Chrysler boss says Trump's idea good if implemented

In April'16, Ford announced an investment of $1.6 billion in the new plant in San Luis Potosi, Mexico.

The company had announced a shift in production from Michigan to Mexico.

Trump regularly during his election-campaign maintained that he won't permit Ford to start the new plant in Mexico.

He called it an "absolute disgrace" and said would slap hefty tariffs-taxes on imported Ford vehicles.

Trump warned that it would impose "big border tax" on General Motors Co. for producing some of its Chevrolet Cruze cars in Mexico.

Trump's team also held parleys with United Technologies Corp (UTX.N) in November 2016.

As a result, the company accepted to keep almost "800 jobs at its Carrier air conditioning unit in Indiana out of 2,100 set to go to Mexico."

Ford Motor Co. said it planned to drop its plan to build the $1.6 billion factory in Mexico.

In lieu of that Ford plans to invest $700 million in its Michigan factory.

It is believed that the decision comes from President-elect Donald Trump's harsh criticism of the Mexico investment plan.

Ford said it needed to "fully utilize capacity at existing facilities" amid declining sales.

Mexico said that it regretted Ford's call to scrap plans to construct a plant in the central Mexican state of San Luis Potosi.

It said that it will ensure that Ford compensates the "state for any costs associated with the investment".

After the announcement, Mexico's peso fell "to touch its weakest level in seven weeks" while Ford shares rose "3.3 percent to $12.54".

Ford Motor Co and Fiat Chrysler Automobiles NV were praised by President-elect Donald Trump for announcing new investments in the United States.

On Sunday, Fiat Chrysler said that it would invest $1 billion and add 2,000 jobs at its Ohio and Michigan plants.

Last week, Ford announced its plans of investing $700 million in a Michigan plant.

Trump tweeted a 'thank you' to them.

US President-elect Donald Trump has threatened German carmakers with a 35% tax for importing cars from abroad.

BMW, Daimler and Volkswagen have made significant investments in factories in Mexico given the low production-costs.

Trump was sharply critical and said if cars are built in Mexico with intention of selling them in US, 35% tax would be levied on every car that enters the US.

President Donald Trump met the heads of America's three largest car companies - General Motors, Ford and Fiat Chrysler - at the White House.

Trump told them to make more vehicles in America and promised to make investment more lucrative by offering tax cuts and fewer regulations.

Trump had previously attacked the car makers for building plants in Mexico and importing cars in America.

Fiat Chrysler head Sergio Marchionne said that all the proposals of President Donald Trump were positive but he was "unsure about what part of this package will get rolled out."

The comments came after Marchionne met with Trump who asked the car makers to make in America.

Trump had also proposed a 35% import tax that could disrupt the "current production arrangements".