Autos: Which carmaker is the most American?
Trump’s jabs prompt action
Detroit — The glitzy Detroit auto show is typically a beauty contest for new cars — but this year it’s become a bragging contest to see who’s the most made-in-the-USA auto manufacturer.
Automakers are practically tripping over themselves to show off their American factories following tweeted jabs by President-elect Donald Trump at automakers that assemble vehicles in Mexico to sell in the U.S.
There’s a lot at stake. As Trump threatens a 35% tax on imported vehicles, which would require extracting the U.S. from the North American Free Trade Agreement, auto-industry executives are fretting that their major investments in Mexico could suddenly be in jeopardy.
In some cases, automakers proactively trumpeted their U.S. investments at news conferences and in interviews at the Detroit auto show. In all cases, they’re well prepared to share statistics about their commitment to America, in addition to the claims: General Motors.
“We have the highest domestic content” of any automaker and have made $11 billion in U.S. investments over the last two years, GM CEO Mary Barra told reporters.
Ford Motor. “We are the largest employer of hourly automotive workers in the U.S.,” Ford CEO Mark Fields said in an interview. Last week, Fields announced the company canceled plans to build a $1.6-billion plant in Mexico.
Fiat Chrysler. The third of Detroit’s Big 3 automakers earned a laudatory tweet from Trump after announcing an expansion of a pair of plants and plans to hire 2,000. Toyota. Japan’s largest automaker has made “more than 25 million vehicles in the U.S. over the past 30 years, which honestly never ceases to amaze me,” Toyota CEO Akio Toyoda said at a news conference. Toyota said it would invest $10 billion over the next five years in U.S. operations. Volkswagen. The German automaking giant noted its recent $1 billion investment in its Chattanooga, Tenn., plant.
“We are a very strong, invested, good corporate citizen in the United States,” VW North America CEO Hinrich Woebcken told reporters. Honda. President Takahiro Hachigo opened the Japanese automaker’s news conference by noting that 2017 is the 40th anniversary of Honda’s announcement of its first American plant. The automaker has 12 factories in the U.S.
“We made this decision based on our commitment to make our products close to our customers,” Hachigo said.
Jeffrey Conrad, Honda senior vice president and general manager, downplayed the political dynamics of those investment decisions but acknowledged that the impact of the Trump administration on the auto industry is the No. 1 issue discussed at the show. “The reality is, we have a president that hasn’t gone through an inauguration yet. Everything truly is speculation,” Conrad said. “We are going to look, wait and see, and we will react accordingly.”
Many of the pronouncements cover investment announcements that were already in the works. They raise questions about whether executives are playing a publicity game in hopes of halting momentum for import taxes, which could have a devastating effect.
“The repercussions would be tremendous,” said Tom Webb, chief economist for Cox Automotive, which offers services to dealers and consumers. “You’re talking about a tremendous falloff in terms of their basic corporate structure.”