Posts Tagged ‘Trump NAFTA’

Trump Trade Disputes Put Automakers in Crosshairs

U.S. auto buyers could face substantially higher prices; industry profits could tumble.

by on Apr.04, 2018

President Donald Trump could be hearing rumbles from the auto industry over his trade policies.

Wall Street investors aren’t the only ones growing worried about Pres. Donald Trump’s increasingly aggressive actions on international trade. Finding themselves in the crosshairs of a potential trade war, automakers are also sounding the alarm.

“We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S.,” the president tweeted this week, ahead of announcing $50 billion in tariffs on Chinese-made goods. The move quickly was mirrored by tariffs announced by China.

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The tit-for-tat trade battle could lead to serious problems for a number of industries, including aerospace, agriculture and chip manufacturers – as well as the auto industry. Carmakers are also fretting over the president’s increasingly confrontational tone over NAFTA, trade with Europe and new tariffs on imported steel and aluminum.

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GM’s Barra Optimistic NAFTA Will Survive; Won’t Pull Silverado Out of Mexico

"I'm very confident NAFTA will be modernized."

by on Jan.14, 2018

Renegotiating NAFTA will be "good for all three countries" in the deal, said GM CEO Barra.

Even as Fiat Chrysler gets ready to pull its full-size pickup truck production out of Mexico, General Motors CEO Mary Barra told reporters over the weekend that GM will continue building its own trucks South of the Border.

Barra, who had briefly served on President Donald Trump’s corporate advisory council until it was disbanded early last year, has been one of the business world’s more vocal supporters of the controversial Commander-in-Chief’s economic policies. And she again defended the administration’s efforts to renegotiate the North American Free Trade Agreement.

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“I’m very confident NAFTA will be modernized and it will be very good for all three countries,” Barra said during a scrum following the debut of the all-new 2019 Chevrolet Silverado pickup.

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FCA Investing $1b, as Ram HD Pickup Moved From Mexico to Michigan

Move to create 2,500 new jobs.

by on Jan.12, 2018

Like its competitors, FCA has been pushing rapidly up-market with its pickups, the 2018 Ram 2500 Tungsten model shown here.

Fiat Chrysler Automobiles plans to invest $1 billion in a suburban Detroit assembly plant that will take over production of the Ram heavy-duty pickup in 2020. The truck currently is assembled in a Mexican factory that will be “repurposed” for another global product, FCA said.

The shift to the Warren Truck Assembly Plant will result in the creation of 2,500 new U.S. jobs, according to FCA. Separately, the Euro-American automaker announced plans to pay $2,000 bonuses to 60,000 U.S. hourly and salaried employees this coming spring.

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“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” said FCA Chief Executive Office Sergio Marchionne. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”

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NAFTA Renegotiations Bound to Fail, Warns Trump

Automakers push back against plan that could sharply raise car prices.

by on Aug.23, 2017

Pres. Trump is now warning he may abandon NAFTA entirely if renegotiation efforts fail.

Barely a week after U.S., Canadian and Mexican trade representatives set out to renegotiate the North American Free Trade Agreement, President Donald Trump warned an audience in Phoenix Tuesday night that the effort is bound to fail.

That wouldn’t necessarily come as a disappointment to the auto industry, however. Automakers, including Detroit’s Big Three, have warned that the demands laid out by the Trump Administration could lead to sharp increases in the cost of new vehicles – even those assembled in the U.S. In turn, that could actually backfire on the president, worsening the current downturn in vehicle sales, costing U.S. jobs.

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Trump reiterated his long-held stand during his Phoenix speech, alleging that bad trade deals had cost the U.S. thousands of jobs. He described NAFTA as the “worst.” And the president also said he was prepared to discard the 23-year-old trade agreement if negotiators don’t work out changes that Trump believes could bring jobs back to the U.S.

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Trump Take Note: Mexican Auto Exports Again on the Rise

Despite presidential push, more coming to U.S. market.

by on May.09, 2017

The Nissan plant in Aguascalientes.

Since launching his presidential campaign, then-candidate Donald Trump has seemingly been at war with Mexico, taking particular aim at that country’s fast-growing auto industry. He called out Ford, in particular, for moving small car production south of the border, and also warned General Motors it could face a big border tax for importing Mexican-made vehicles.

Since January, the new president has frequently pointed to new U.S. automotive investments, while also highlighting Ford’s decision not to build a second plant in Mexico. But a new report from that country’s automotive trade association may be less well-received by the White House.

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Overall, Mexican automotive exports rose 16.1% in April, compared to year-earlier numbers, while production jumped a more modest 3.2%, according to the Mexican Auto Industry Association, or MAIA. For the first four months of the year, meanwhile, total exports jumped 15 percent.

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President Trump Jumps on NAFTA Before Inaugural Speech Ends

Commander-in-chief backing up campaign promise on NAFTA.

by on Jan.20, 2017

President Donald Trump didn't waste any time jumping into governing, issuing a call to renegotiate NAFTA before his inaugural speech ended.

It didn’t take long for President Donald Trump to move from words to actions. As he was delivering his inaugural address, the White House issued statements saying Trump is pulling out of the Trans-Pacific Partnership and would take immediate steps to renegotiate NAFTA.

“With a lifetime of negotiating experience, the President understands how critical it is to put American workers and businesses first when it comes to trade,” the White House said in a release.

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“With tough and fair agreements, international trade can be used to grow our economy, return millions of jobs to America’s shores and revitalize our nation’s suffering communities.” (more…)

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.

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“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 Rethinking NAFTA Plans

President-elect adviser examining agreement to make it more U.S. friendly.

by on Dec.07, 2016

President-elect Donald Trump is rethinking his plans for terminating the North American Free Trade Agreement.

Apparently ripping up NAFTA is not Job One for the incoming Trump administration after all.

The Hill, a newsletter and website that follows policy developments in Washington, reported this week that members of President-elect Donald Trump’s transition team are telling corporate executives that the administration isn’t going to do anything that might prompt a trade war with Mexico or Canada, this country’s principal partners in the North American Free Trade Agreement.

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Trump announced he will scuttle the Trans Pacific Partnership. But unlike TPP, which was never signed or approved, NAFTA has been in place for more than 20 years and has created a broad web of interests on both sides of the border. It is considered essential by automakers. (more…)

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