After criticism by Donald Trump as the US president elect pointed towards rival General Motor Co, by threatening a “big border tax” over the compact cars which are made in Mexico. Ford Motor Co scrapped a planned Mexican car factory and decided to add 700 jobs in Michigan.

Ford Motor CEO Mark Fields called the move as “vote of confidence” in Trump, but primarily a response to a decline in North American demand for small cars like those that would have been made at the plant in Mexico. He said that Ford would have made the same decision even if Donald Trump had not been elected as next President.

Ford will cancel its plans which was unveiled in April, to spend $1.6 billion to build the new manufacturing plant in San Luis Potosi, Mexico, a project Trump strongly recommended the automaker to desert and called an "absolute disgrace" during the election campaign.

The Ford is No.2 in the Country automaker, they said it will be investing $700 million to expand the Flat Rock, Michigan factory and would make new electric, hybrid and autonomous vehicles there.

Donald Trump's efforts to intimidate the American car industry shows, that he may go ahead than the other modern presidents to try to influence corporate decisions, especially towards those companies which are related to trade and investment.

In a Twitter post hours before the Ford's announcement, Donald Trump tweeted, "General Motors is sending Mexican made a model of Chevy Cruze to U.S. car dealers-tax free across the border. Make in America or pay big border tax!" General Motors, the largest American automaker, said manufacturing some of the Cruze cars at the plant in Coahuila, Mexico was the part of its strategy to serve global customers, not sell those vehicles in the United States.

Donald Trump's General Motor tweet was his latest broadside aimed at an US company over jobs, imports and costs even before he takes office on January 20.

Ford Motor said they still will shift their production from Michigan of their Focus compact car to an existing plant in Hermosillo, Mexico. Fields said he expects Michigan to give incentives for Ford's investment in Flat Rock.

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