Now, I’m not going to get drawn into politics and my own personal thoughts on Trump here, (quite probably shared with your own views), but his early ‘interference’ with the American automobile industry, before he’s even installed himself into the White House, are unprecedented, with potentially alarming consequences for the domestic US carmakers.
As you are probably aware, via some misguided Tweets, Trump is proposing to add a huge 35 percent taxation tariff to any Mexican-built vehicles imported into the United States, in the questionable belief that this action will not only help to protect the jobs of existing American auto workers but potentially create new positions in this vital employment sector as well.
America’s third-largest vehicle maker, Fiat Chrysler Automobiles (FCA), seems to have already taken heed of Trump’s thinking, announcing a $1billion investment earlier this week in two US-based production facilities in Michigan and Ohio, with an extra 2,000 new jobs being created to build three brand new future Jeep models. FCA already has established manufacturing facilities in Mexico, where the distinctive but unpleasant Chrysler PT Cruiser was exclusively made. Today FCA Mexico builds Fiat, Chrysler, and Dodge-branded vehicles, many of these aimed at the American market, so with a 35 percent import levy price hike, its USA sales and market share look set to take a thumping downward hit.