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Fact check: John deer shutting down production in USA
1. Summary of the results
The statement about John Deere "shutting down production in USA" is misleading and lacks crucial context. While the company is implementing selective layoffs affecting approximately 287 employees across facilities in Iowa and Illinois [1], it is simultaneously making substantial investments in US manufacturing. John Deere has committed $20 billion to US manufacturing over the next decade [2], including specific expansions in Missouri, North Carolina, Tennessee, and Iowa.
2. Missing context/alternative viewpoints
Several important contextual elements are missing from the original statement:
- Scale of layoffs and broader context: The company has cut approximately 1,700 jobs in Iowa since 2024, including 112 employees in Waterloo, 75 in Ottumwa, and 80 in Davenport [3]
- Reason for layoffs: The reductions are specifically due to decreased demand for farm equipment and weakening farm economy, not a strategic move away from US production [4]
- Simultaneous expansion: John Deere is actively investing in US facilities, including:
- A $13.5 million expansion of the Reman Core Center in Missouri
- A new $70 million excavator factory in North Carolina
- Various upgrades to facilities in Iowa and Illinois [5]
- Financial context: The company's projected earnings are expected to drop $5 billion from 2023 levels [3]
3. Potential misinformation/bias in the original statement
The statement appears to be part of a broader pattern of misinformation about US manufacturing. For instance, previous claims about John Deere's manufacturing decisions have been proven false, such as when Trump claimed the company was abandoning plans to build in Mexico due to tariff threats - a claim that was directly refuted by John Deere's spokesperson to both The Wall Street Journal and Bloomberg News [6].
Several groups might benefit from pushing this narrative:
- Political actors seeking to create narratives about US manufacturing decline
- Labor unions potentially using the layoffs to negotiate better terms
- Competitors who might benefit from uncertainty about John Deere's stability
- Market speculators who could profit from stock price fluctuations based on negative news
The reality is more nuanced, showing a company making strategic adjustments while maintaining a strong commitment to US manufacturing.