As the new administration in the US steps in, President Donald Trump recently held a meeting with the CEOs of Ford Motor Company, General Motors and Fiat Chrysler Automobiles (FCA). The newly elected president vowed reduced production regulations and more incentives for the Detroit Big Three if they choose to invest more in their home market.
Prior to the elections, the Ford Motor Company did not take kindly to the President's comments about the automaker's production plans in Mexico. After the discussion, Ford is supportive of Trump's planned policies. “We are very encouraged by the President and the economic policies that he is forwarding,” said Mark Fields, CEO of the Ford Motor Company.
Mary Barra, CEO of General Motors also expressed their support for president Trump's upcoming tax and trade policies. In an official statement, Barra said, “We all want a vibrant U.S. manufacturing base that is competitive globally and that grows jobs. It's good for our employees, our dealers, our suppliers and our customers.”
FCA CEO Sergio Marcionne said, "I appreciate the President's focus on making the U.S. a great place to do business. We look forward to working with President Trump and members of Congress to strengthen American manufacturing."
In recent news, Trump withdrew support for the Trans-Pacific Partnership (TPP) deal. Regarding the matter, Fields said, “The mother of all trade barriers is currency manipulation and TPP failed in dealing with that. We appreciate the President's courage to walk away from a bad trade deal.”
To boost production in the US, as well as encourage building more factories, President Trump vowed to cut regulations that makes automotive production in America more expensive. Speaking to Automotive News, Trump said, “We think we can cut regulations by 75 percent. Maybe more. When you want to expand your plant, or when Mark (Fields, Ford CEO) wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special, you’re going to have your approvals really fast.”
Since the US Elections, Ford has canceled plans to shift production of the Focus to Mexico after threats of higher tariffs. Trump has also threatened higher tariffs for General Motors for building the Chevrolet Cruze hatchback in Mexico.
It's not just the US manufacturers that were warned of higher tariffs if they continue building cars in Mexico. Trump recently blasted Toyota and BMW for their plants in the said country. Toyota currently has assembly plants in Mississippi Kentucky, Texas, Indiana, Alabama and West Virginia. BMW meanwhile builds the all X3, X4, X5 and X6 models in their South Carolina plant.