Praise for Putin — really!
Nothing is immune to Donald Trump these days.
It was only matter of time before the enfant terrible of North American politics made its way into this column.
Leaving his usual comfort zone of immigrant bashing and thinly veiled misogyny, Trump dug into the U.S. automotive industry last month during an interview with CNN.
The Republican presidential contender has been vocal against shipping manufacturing jobs to low-cost nations ever since he started his bid for the top U.S. job. But every time, he seems to shift the goalpost with as much insightfulness as a Michael Bay blockbuster.
During the interview, he suggested that automakers who choose to move jobs to other countries — he had Ford and Mexico on mind in this particular instance — should pay taxes to bring those cars back into the American market.
There’s always a logical simplicity to Trump’s statements that captures the common mind.
Immigrants are taking our jobs, send them back, problem solved. Build everything in America, unemployment issue solved.
When it comes to automotive jobs, I have seen enough online comments boards both in U.S. and Canada to know that many people have similar opinions. The Washington Post recently published an article on how Trump’s message resonated during a campaign stop in Flint, Mich. — that perennial poster child of everything that’s wrong with America’s manufacturing heartland.
Look, it’s perfectly understandable that those who have lost jobs or are facing an uncertain future will be angry and frustrated at forces beyond their control. They have a right to expect solutions from their leaders.
But it’s another thing when a presidential hopeful peddles dreams that are bound to be crushed under the weight of current global economics.
If we are to operate in a free-market world, and Trump is surely no leftist, the constant redistribution of manufacturing footprint is inevitable. Yes, North America has lost its production stronghold over the last few decades, but it’s also true that many of those jobs are coming back to the U.S. as costs in countries like China continue to grow. For some products, it no longer makes sense to make it in Asia and ship them in.
Similarly, Asian and European automakers continue to set up shop in the American south, as well as Mexico.
Both U.S. and Canada are losing jobs to the third NAFTA partner because American automakers are being compelled to be competitive with their global counterparts. The likes of Ford and General Motors have to keep their production portfolio balanced to hit profitability targets. They also have to use Mexico as a gateway to Central and South America — regions that are becoming increasingly important for sales growth. Moreover, many of our jobs are being lost to productivity improvements and automation, not to cheap labour. How do you stop that? Nobody’s using pigeons in the age of Smartphones.
The real problem with someone like Trump is that they prevent any meaningful discussion over critical issues such as manufacturing and employment. Thankfully, Trump’s not our problem, but intellectual callousness is often contagious.
Governments ought to hold companies responsible or at least create a policy framework that encourages homegrown jobs or retraining options.
But if we are also being truly honest, we also know that some of the work is gone forever. Sad but true.
Sadder still would be if Trump actually outlasted his Republican rivals. Can someone make him go away? Kumar Saha is a Toronto-based automotive analyst with global research firm, Frost & Sullivan. He contributes regularly to Wheels and if you want to reach him, email wheels@thestar.ca and put his name in the subject line.
To operate in a free-market world, and U.S. Republican presidential candidate Donald Trump is surely no leftist, the constant redistribution of manufacturing footprint is inevitable