The executives of auto companies all over the world are highlighting their investments in the United States at the Detroit Auto Show. It did seem that the executives are mindful of President-elect Donald Trump's attacks on automakers for building vehicles in Mexico.
Fiat Chrysler Automobiles (FCHA.MI)(FCAU.N) Chief Executive Sergio Marchionne stated that the uncertainty over Trump's trade and tax policies could lead to delay in investments in Mexico. He also stated that he plans to create 2,000 jobs at Fiat Chrysler's U.S. factories.
"The reality is the Mexican automotive industry has now for a number of years been tooled-up to try and deal with the U.S. market. If the U.S. market were not to be there, the reasons for its existence are on the line," Marchionne told, reported Reuters.
It was announced by FCA that it would spend $1 billion to retool factories in Ohio and Michigan to build new Jeep sport utility vehicles, as well as a pickup truck. It also announced that it will potentially move production of a Ram heavy-duty pickup truck to Michigan from Mexico, reported VOA News.
Ford confirmed it would build a new Ranger pickup and a new SUV under the storied Bronco name at a Michigan factory that currently builds Focus small cars. During the 2016 presidential campaign, Trump criticized Ford's announcement which it made last year that it would move Focus production to Mexico.
Last week, Ford scrapped plans to build the $1.6-billion Focus plant in Mexico and said it would invest $700 million in a factory in Michigan. While that matter at hand is a big deal, the executives at Ford, Fiat Chrysler and other automakers emphasized that their investment decisions were driven by business considerations, not Trump's comments.
It is a fact that most major automakers in the U.S. market have substantial vehicle-making operations in Mexico. There is a complex network of parts makers that supply their factories in the United States and support jobs and investment in states such as Ohio and Michigan.
Trump reacted to the announcement and praised Ford and Fiat Chrysler's latest announcements through Twitter. "It's finally happening - Fiat Chrysler just announced plans to invest $1BILLION in Michigan and Ohio plants, adding 2000 jobs," Trump tweeted. "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(hrysler)."
Trump's focus on U.S. automotive jobs, and uncertainty over what policies he may introduce, have been the main points of discussion among the top officials in the industry at the annual auto show. Various companies ranging from General Motors Co (GM.N) to Honda Motor Co (7267.T) to Daimler AG (DAIGn.DE) used the show to highlight new U.S. investments.
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