TRUMP AUTO PLAN NEEDS TEST DRIVE
Industry leaders seek more ‘clarity’
Car sales hit a new high in 2016 as gas prices and interest rates remained low, but industry analysts are not revving up predictions for this year until they see how President-elect Donald Trump drives automakers.
“They are all a little nervous about being a target, and they are all certainly interested in some clarity,” said Michelle Krebs, a senior analyst for Autotrader who is at the North American International Auto Show in Detroit. “Donald Trump isn’t here, but his name is very much in the room.”
Throughout his campaign, Trump criticized automakers for moving production to Mexico. He has also threatened hefty tariffs on Mexican-made vehicles that are exported to the United States.
He took to Twitter yesterday and praised Ford Motor and Fiat Chrysler Automobiles after the companies announced they would boost investment in plants and products stateside.
“It’s finally happening — Fiat Chrysler just announced plans to invest $1BILLION in Michigan and Ohio plants, adding 2,000 jobs,” Trump tweeted, adding: “This after Ford said last week that it will expand in Michigan and U.S. instead of building a BILLION dollar plant in Mexico. Thank you Ford & Fiat C!”
Trump’s fiery campaign rhetoric sent waves across the massive yearly auto show yesterday, as major players in the industry face questions about what the business will look like under the new administration.
The meeting comes as 17.55 million new cars and trucks rolled off lots last year, up by just a few thousand cars from the previous year, according to multiple reports.
Executives from General Motors and Volkswagen said they have no plans to change production plans despite the Trump border tax threat. Toyota’s North American
CEO Jim Lentz said Trump’s proposed tariffs could potentially force automakers to raise prices, which could affect sales and force layoffs.
Sergio Marchionne, CEO of Fiat Chrysler Automobiles, said the industry will be forced to adjust and adapt to a Trump presidency, adding: “I need clarity. I think we all need clarity.”
Professor John James, executive director at Pace University’s Center for Global
Gover- nance, Reporting, and Regulation, said he believes Trump will be a boon for the auto industry.
“If Donald Trump is sincere in carrying out the policies he has proposed — tax restructuring and forming bridges between government business and unions — he will be a great president for the auto industry,” he said. “His policies indicate that he will bridge this gap.”