The Morning Brew: Auto makers feel the heat from Trump
Tuesday is here. Automakers are feeling the heat from president-elect Donald Trump.
The Detroit Auto show kicks off as automakers feel heat from Trump
Carmakers are stumped by Trump and feeling the heat from the president-elect.
“Already, manufacturers are complaining that under Trump, the future isn’t predictable,” said Eric Noble, president of The CarLab consulting firm in Orange, California. When the new products on exhibit at the Detroit show were on drawing boards, vehicle sales were recovering from the deepest economic slump since the 1930s. “They’re all now delaying decisions to increase production investment because the environment seems unstable.”
As the auto show opened, Fiat Chrysler announced plans to invest $1 billion in plants and jobs in the Detroit suburb of Warren, Mich. as well as Toledo, Ohio
It's finally happening — Fiat Chrysler just announced plans to invest $1BILLION in Michigan and Ohio plants, adding 2000 jobs. This after ...— Donald J. Trump (@realDonaldTrump) January 9, 2017
Fiat Chrysler CEO Sergio Marchionne told the Detroit Free Press Monday:
I need clarity. I think we all need clarity,” said Marchionne when asked about Trump. “And we are not the only ones that need clarity.”
Trump has frequently suggested he would push a 35 percent border tariff on goods imported from Mexico and wants to renegotiate the North American Free Trade Agreement. Trump made the revision of free trade agreements, and specifically NAFTA, a centerpiece of his campaign.
If that were to happen, Marchionne said FCA would consider closing plants in Mexico.