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Posts Tagged ‘trump trade’

Automakers Look for Options, Weigh Costs Under Trump

Carmakers, car buyers, car workers might all feel the impact.

by on Jan.27, 2017

Pres. Donald Trump signing an Executive Order. He plans to enact a 20% Mexican tariff.

The increasingly contentious battle between the Trump Administration and Mexico could lead to some significant collateral damage, notably including both carmakers and car buyers.

With the Mexican government rejecting a White House demand to pay for a border wall, President Donald Trump now wants to not only negotiate the North American Free Trade Agreement but impose a 20% tariff on good imported from south of the border. After making extensive use of NAFTA to set up a network of manufacturing operations in Mexico, automakers could be among the hardest hit.

Beyond the Headlines!

But there is, for now, widespread disagreement about how to respond to the Trump plan. Japanese automakers Nissan and Toyota say they are looking for ways to increase U.S. production. Ford’s CEO, after meeting with the new president this week, is rejecting the idea of building any new U.S. factories. Meanwhile, Fiat Chrysler’s chief executive says it may be time to rethink the possibility of a merger with domestic giant General Motors.

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Trump to Meet with Detroit CEOs on Tuesday

Plenty of room for deal-making.

by on Jan.24, 2017

Will Trump use the carrot, the stick, or both, during his meeting with Detroit's Big 3 CEOs.

With an assortment of global leaders set to visit the White House in the coming weeks, President Donald Trump will first take time to meet with the CEOs of the Detroit Three automakers in the Oval Office this morning, and it’s expected there will be plenty on the agenda.

Trump has put a lot of emphasis on the auto industry since launching his campaign in 2015, notably taking shots at the largest of the two domestic makers for importing cars from Mexico. He has threatened to enact a “big border tax,” according to a tweet fired at General Motors earlier this month, scuttled the Trans-Pacific trade pact and advised both Mexico and Canada of his plan to renegotiate the NAFTA deal.

Breaking News!

While industry officials worry about the impact of new trade barriers, they’re also hoping to get a sympathetic ear from the new president on a variety of their own concerns, including corporate taxes and government regulations like the tough Corporate Average Fuel Economy, or CAFE, mandate the EPA reaffirmed in the final hours of the Obama Administration.

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Scrubbing NAFTA Could Cost More Than 30,000 U.S. Auto Jobs

Workers, consumers could lose, not win, say experts, new study.

by on Jan.12, 2017

President-elect Donald Trump's opposition to NAFTA could have unexpected consequences.

If President-elect Donald J. Trump moves ahead with plans to derail the North American Free Trade Agreement, it could significantly impact the U.S. auto industry, but not in the way the incoming Commander-in-Chief had promised, according to a new study by the Center for Automotive Research.

After entering the presidential race in 2015, then-candidate Trump began targeting NAFTA as a major factor behind the loss of American manufacturing jobs. He has repeatedly called out automakers, including Ford, General Motors and Toyota, for importing Mexican-made vehicles, and threatened to either end or modify the trade deal or, alternatively, to enact a 35% tariff on goods brought in from the country.

News Now!

“Counter to the incoming Trump Administration’s goal of creating manufacturing jobs the withdrawal from NAFTA or the implementation of punitive tariffs could result in the loss of 31,000 U.S. jobs,” said CAR, a highly respected automotive research firm in Ann Arbor, Michigan.

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Trump Attacks GM Over Mexican-Made Chevy Cruze

Detroit maker fires back at latest attack on auto imports.

by on Jan.03, 2017

The President-Elect shifts his focus to GM.

After spending much of his initial campaign taking shots at Ford Motor Co. for its plan to shift small car production to Mexico, President-Elect Donald Trump is now taking a poke at General Motors for importing the Chevrolet Cruze from a plant south of the border.

“Make in U.S.A. or pay big border tax,” the businessman-turned politician declared in a tweet, slamming GM for “sending Mexican-made model of Chevy Cruze to U.S. car dealers-tax free across border.” The president-elect has proposed dismantling or revising the North American Free Trade Agreement and hitting Mexican imports with as much as a 35% tariff – though he has notably made no public indication of plans to return production of his own clothing lines – some made in Mexico – back to the U.S.

Breaking News!

For its part, General Motors quickly responded to the Trump attack by noting that all of the Chevrolet Cruze sedans sold on the American market are produced in the U.S. A small number of Cruze hatchbacks recently began being imported from Mexico.

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China Hits GM With Fine Some See as Shot at Trump

Detroit maker accused of price-fixing – but other factors could be in play.

by on Dec.23, 2016

An SGM assembly line in Shanghai.

General Motors has been slapped with a $29 million fine for what the Chinese government is describing as monopolistic pricing – but which some observers believe has much to do with growing friction between China and the incoming Trump Administration.

According to government-linked China Central Television, General Motors joint venture with local maker SAIC, SGM, had been illegally setting a floor on prices for a number of Buick, Chevrolet and Cadillac models.

The Last Word!

The investigation had been underway before the recent U.S. election, but a number of observers have suggested that the decision to levy a fine against the largest American automaker was meant to be seen as a warning shot at a time when the incoming administration is suggesting it may shift the country’s position on Chinese trade and political issues.

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GM May Be Caught Up in Trump-China Dispute

Detroit maker facing fine for anti-trust violation.

by on Dec.14, 2016

The Chinese version of the Buick Envision.

General Motors may be finding itself caught between the proverbial rock and a hard place – or, more precisely, between China and the incoming Trump Administration.

GM’s joint venture with Shanghai-based SAIC is under investigation for possible anti-trust violations, according to several news reports out of China, with the well-connected China Daily newspaper today indicating it will be hit with a penalty for monopolistic behavior.

Trade News!

The reports come at a time some sources indicate is anything but coincidental. China has been openly critical of incoming President Donald Trump’s proposed trade policies and efforts to bring manufacturing back to the U.S. But the communist country has been especially harsh in its response to the president-elect’s decision to reengage with Taiwan, potentially ending a decades-long “one China” policy.

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