On Thursday, President Elect Donald Trump tweeted the following, almost as if he saw our story about his tweets’ impact on stocks that was posted minute earlier:
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.
— Donald J. Trump (@realDonaldTrump) January 5, 2017
Toyota’s market cap dropped over $1.2 billion within five minutes of the tweet:
— Tommy Christopher (@tommyxtopher) January 5, 2017
Trump’s tweet was ostensibly a response to comments made earlier in the day by Toyota Motor president Akio Toyoda, who said at an auto industry event that the company was not paring down its factories in Mexico. “We will consider our option as we see what policies the incoming president adopts,” he said. Honda president and CEO Takahiro Hachigo added that “We produce cars in Mexico for markets including North America and Europe and we have no immediate plan to change this.”
The line of discussion came as a result of Ford Motor cancelling its plans to build a $1.6 million land in Mexico. Toyota’s Baja California facility manufacturers about 100,000 pickup trucks annually. They hope to get that number up to 160,000 in the next year.