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Trump’s Corporate Targets Face Tricky Task In Fending Off His Attacks

Trump’s Corporate Targets Face Tricky Task In Fending Off His Attacks

By Nick Carey and Emily Stephenson

As the White House race took off last summer, food giant Mondelez International found itself in an unusual position: Republican candidate Donald Trump began delivering broadsides against one of its iconic products, Oreo cookies.

“Nabisco is closing a factory in Chicago, and they’re moving to Mexico. No more Oreos. I don’t like Oreos anymore,” Trump told a crowd in New Hampshire on Aug. 14, reacting to reports that Mondelez was shutting down some production lines at its Nabisco subsidiary in Chicago while boosting output in Mexico.

Trump’s statement that Mondelez was closing a Chicago factory was erroneous, as the company quickly pointed out, but that didn’t stop him from repeating it.

It’s unusual for a top presidential candidate, especially a representative of the business-friendly Republican Party, to attack major U.S. corporations by name.

But over the course of his unconventional campaign, Trump has aimed his fire at a range of companies, mostly for shifting jobs abroad (Ford Motor Co, United Technologies Corp unit Carrier Corp) but also for building products in foreign markets (Apple) and for what he said were violations of antitrust laws (Amazon).

Trump has threatened the companies with boycotts, tariffs, taxes and other punishments. The Trump campaign declined to comment for this story.

Some of the companies saw their share prices dip in the wake of Trump’s criticism while others experienced a small boost.

But all of them were presented with a dilemma that’s familiar to the presumptive nominee’s many vanquished Republican rivals: Should they engage with a possible future president known for holding a grudge, possibly inviting more wrath, or should they lie low and risk allowing Trump to define them and to push policies they deem harmful?

Most have sought to stay out of the fray even as Trump has kept up the drumbeat of criticism.

“I am fighting hard to bring jobs back to the United States Many companies – like Ford, General Motors, Nabisco, Carrier – are moving production to Mexico,” Trump said this week. This was “bad for all Americans,” he said.

It was the first time Trump included GM in his roster of corporate wrongdoers, though the Trump campaign later removed GM from the statement and declined to say why. GM declined comment.

 

MONDELEZ TREADS CAREFULLY

Mondelez, previously known as Kraft Foods, took a different tack.

After Trump vowed to boycott Oreos, Mondelez fielded numerous media inquiries and contacted reporters when the company deemed press coverage of his remarks off base, said Laurie Guzzinati, who oversees governmental affairs in North America for Mondelez.

The company didn’t engage in any Trump-bashing, though Guzzinati said Trump’s comments were “grounded in inaccuracies.”

She said she told reporters that Mondelez would continue to make Oreos in three locations in the United States, countering the impression Trump may have left that Oreos would no longer be made in the United States.

Mondelez’s response tracks closely what crisis management experts recommend for Trump-targeted companies.

Hilary Rosen, a managing director for Washington, D.C., communications firm SKD Knickerbocker, said her firm was representing corporate clients who have been singled out by Trump, though she declined to name them.

Rosen’s advice to clients, she said, is “don’t depend on educating Donald Trump on the truth. People have tried and failed.”

Rosen, a Democrat, recommends instead that companies make their case to the journalists who cover Trump, so “Donald Trump does not define you.”

None of the companies targeted by Trump acknowledged hiring outside consultants to deal with his criticism. Many declined to comment for this story.

 

AVOIDING THE MUD

“You’re not going to win in a one-on-one confrontation with Donald Trump. You’re just going to get mired in the mud,” said Juda Engelmayer, senior vice president for crisis management at 5W Public Relations in New York.

Those who have been willing to engage, including Ford Chairman Bill Ford, have avoided getting too personal.

Trump has railed against Ford for manufacturing vehicles in Mexico, threatening a tariff of up to 40 percent on “every car, bumper and part” entering the United States from Mexico.

Ford, the great-grandson of the automaker’s founder Henry Ford, called Trump’s critique “distorted” and said the company instead should be “held up as a real success story.”

“We didn’t take the (government) bailout,” during the 2007-2009 recession, Ford told reporters at a conference in Detroit on May 23, contrasting his company with GM and Chrysler. “We paid back our debts. We pulled ourselves up by our boot straps. We are investing in America.”

Crisis management experts said companies targeted by Trump need to be thinking more about the policy implications of his presidency. That means, for example, shoring up support in the U.S. Congress for the North American Free Trade Agreement (NAFTA), which Trump has said he wants to renegotiate.

A trade lobbyist who asked not to be named because he has worked with one of the companies Trump has called out said Trump’s attacks do not particularly hurt companies’ reputations in Washington, because policymakers understand presidential campaigns are the “political silly season.”

But, he said, they can impact broader efforts on trade and other policies. “I think what this suggests,” he said, “is that there needs to be a concentrated effort by the business community to talk about the benefits of trade.”

 

Additional reporting by David Shepardson in Washington, Jessica Toonkel in New York and Joseph White in Detroit; editing by Eric Effron and Ross Colvin

Photo: Republican U.S. presidential candidate Donald Trump looks at the crowd while addressing The Faith and Freedom Coalition’s “Road To Majority” conference in Washington, U.S., June 10, 2016. REUTERS/Joshua Roberts 

U.S. Automaker Ford Names New Chief Executive

U.S. Automaker Ford Names New Chief Executive

New York (AFP) – Ford Motor Thursday announced that Alan Mulally will step down as chief executive on July 1, and named chief operating officer Mark Fields to replace him.

The announcement moves up by six months the time-frame for the departure of Mulally, 68, a former Boeing executive credited with turning the company around.

“Alan and I feel strongly that Mark and the entire leadership team are absolutely ready to lead Ford forward, and now is the time to begin the transition,” executive chairman Bill Ford, who recruited Mulally from Boeing in 2006 said in a statement.

“Alan deservedly will be long remembered for engineering one of the most successful business turnarounds in history,” Bill Ford said.

In November 2012, Ford announced the promotion of Fields, 53, formerly president of the company’s Americas division, as chief operating officer, tasked with managing business operations.

Meanwhile CEO Mulally oversaw strategic development, and Ford at the time said he was expected to remain in that job “through at least 2014.”

The U.S.’s second-largest automaker notched impressive sales growth under Mulally, who also enabled the Detroit to withstand the 2008 financial crisis without seeking a government bailout. Earnings rose 26.3 percent in 2013 to $7.2 billion.

In late 2013 and early 2014, Mulally was frequently mentioned as a candidate to lead Microsoft, but the software giant ultimately turned inward for a new CEO, choosing Satya Nadella.

Ford shares were up 0.4 percent to $16.06 in pre-market trade.

Stan Honda AFP

Ford Recalls Vehicles Over Steering, Back Seat Issues

Ford Recalls Vehicles Over Steering, Back Seat Issues

New York (AFP) – Ford Motor issued two vehicle recalls Monday, one to fix a corrosion risk that could affect steering and another to replace seat frames that do not meet safety standards.

Ford said it was recalling about 385,7500 Ford Escape sport-utility vehicles in the model years 2001-2004 to address a potential subframe corrosion issue that could cause the lower control arm to separate, resulting in reduced steering control and an increased crash risk.

The number-two US automaker said it was aware of one crash that may be related to the issue, but knew of no injuries.

Dealers will install a reinforcement crossbrace to prevent the separation.

Affected vehicles included some that were originally sold or currently registered in high-corrosion states or provinces, where road salt is used extensively to counter icy conditions. Most of the recall affects some 48,950 Ford Escape SUVs in the United States and about 37,000 in Canada.

The second recall affects about 48,950 Ford Fusion, Lincoln MKZ, Ford Escape and C-MAX vehicles in the model years 2013-2014.

Ford said that some seat back frames may have been produced with sub-standard welds, potentially increasing the risk of injury in certain collisions.

No accidents or injuries have been linked to this problem, Ford said.

Dealers will replace the suspect seat back frames and associated parts on the vehicles. Most of them — 42,972 — are located in the U.S.

AFP Photo/Stan Honda

Ford’s U.S. Auto Sales Rebound In March

Ford’s U.S. Auto Sales Rebound In March

Washington (AFP) – Ford’s U.S. auto sales accelerated in March, pulling out of a February slump blamed on brutal winter weather, while General Motors delayed its results over a computer problem.

Ford, the second-largest U.S. automaker, said total sales in its home market rose three percent in March from a year ago, to 244,167 vehicles.

“March sales turned noticeably higher mid-month and finished strong,” John Felice, Ford vice president, U.S. marketing, sales and service, said in a statement.

The comeback came after Ford sales dropped six percent in February, in part because vehicle deliveries to fleet customers and parts to its factories were delayed by the severe weather.

The top U.S. automaker General Motors, meanwhile, announced that its U.S. sales report would be delayed by several hours “due to a computer systems issue that impacted dealer sales reporting.”

News of the glitch came shortly before GM chief executive Mary Barra was to testify to Congress in a hearing over why the company ignored a faulty ignition problem for a decade despite numerous accident reports and 13 deaths.

Analysts have already speculated that the trouble could cost the company billions of dollars in penalties and damages, in addition to the costly vehicle recalls.

Chrysler once again outpaced its rivals in March, posting a robust 13 percent year-over-year increase in U.S. sales to 193,915 units.

The U.S. unit of Milan-based Fiat Chrysler Automobiles has clocked in 48 consecutive months of year-over-year sales gains in the United States.

“We are entering the spring selling season on a high note as our Jeep and Fiat brands recorded their best sales months ever,” said Reid Bigland, head of U.S. Sales.

Fiat brand sales leaped 24 percent in March, the best sales month since the Italian auto brand returned to the U.S. market in 2011.

Mira Oberman via AFP