Why are American car manufacturers feeling uneasy as Trump takes office?
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According to the U.S. Automotive News, on November 8, 2016, Donald Trump (hereinafter referred to as Trump), who was elected as the next U.S. President amid the astonishment of the world, expressed many political views during the election campaign, which put a lot of pressure on major U.S. automakers, especially auto brands and parts suppliers that rely on the North American Free Trade Agreement and have huge investments in Mexico. The performance of the U.S. stock market on November 9, U.S. time (closed at 4:00 a.m. on November 10, 2016 Beijing time), almost could not escape the fate of falling. Trump's election, U.S. automakers and suppliers' stocks plummeted. Among them, General Motors, the leader of the U.S. auto industry, once fell 4.63% during the session and closed down 2.43%. General Motors said on the same day (November 9, U.S. time) that in order to cater to consumers' preferences for shifting from sedans to SUVs and trucks, it will lay off employees and adjust production capacity at its factories in Lordstown, Ohio and Lansing, Michigan. It is understood that the Lordstown plant mainly produces Chevrolet Cruze, while Lansing produces Cadillac sedans and Chevrolet Camaro, the Bumblebee in the movie Transformers. In addition, Ford Group also fell 3.48% during the session and closed with a small increase of 0.87%. However, when it comes to Tesla, it really tests the confidence of investors, causing Tesla's stock price to jump 5.57% as soon as it opened and closed with a drop of 2.50%. Considering that Trump, who has publicly stated many times that global warming is a fake issue, may cancel the federal government subsidies for electric vehicles after taking office, it is undoubtedly a headache for Tesla, which just acquired the well-known German engineering company Grohmann Engineering the day before yesterday. In addition to launching fully automated production in Germany, Tesla is expected to recruit more than 1,000 senior engineers and professional technicians in Germany in the next two years, fully demonstrating its determination to become the leader of the global electric vehicle industry. Of course, large parts suppliers that have moved their factories to Mexico have also suffered heavy losses. For example, Delphi, one of the world's largest parts manufacturers, has development projects including electronic control systems, powertrains, and safety equipment, and has invested in more than 50 factories in Mexico. It once plunged more than 9% during the trading session. Ford, Trump's probation list The United States is currently facing a high unemployment rate. Compared with automobile companies taking advantage of tax incentives to continue to move factories abroad, the unemployment rate has become even worse. This has made Trump, who will run for election with a low unemployment rate, the first to point the finger at Ford. As early as June 2015, when Trump announced his candidacy, he had declared that he would block Ford from investing in a new factory in Mexico and threatened to impose tariffs on goods shipped back to the United States from Mexico, but Trump was not aimless. According to statistics from the Center for Automotive Research, Mexico alone accounts for 20% of North America's automobile manufacturing capacity; and since 2010, American automakers have invested more than $24 billion in Mexico. If compared with the current investment plans of various automakers in Mexico, it is expected that Mexico's automobile production capacity will increase by another 50% in the next five years. As a result, between 1994 and 2003, the number of jobs in the US domestic auto industry decreased by one-third, while the number of low-paid production line workers in Mexico increased fivefold. Take Ford and GM as examples. Ford just announced in April this year that it would invest $1.6 billion to expand its small car production line in Mexico, and GM also plans to invest $5 billion in Mexico. Although both automakers said yesterday that they look forward to working with the new government to strengthen the strength of American brands, according to the information during the election, there is still a considerable gap between the automakers and the Trump team in their understanding of investing in Mexico. It is worth mentioning that when Ford announced in September this year that it would move its small car production line to Mexico, it attracted a round of reprimands from Trump. In October, Ford Chairman Bill Ford responded to Trump's criticism of Ford and expressed anger and disappointment at such criticism. He also pointed out that Ford employs more employees in the United States than other automakers, and that the investment in Mexico is for the development of new products and will not reduce American jobs. Trump's threat sounds quite inflammatory, and for automakers and parts suppliers who have invested more than billions of dollars in Mexico, the tariffs will also be reflected in the costs. The Detroit-based Original Equipment Suppliers Association pointed out that if the trade policy proposed by Trump during the campaign is used, the price of each small car in the United States will increase by at least $5,000 in the future, which is almost one-fourth of the price of the current mainstream car models. The impact will be huge. Therefore, I think the new government will not take such drastic measures for the time being, otherwise it will bring a considerable impact. How the new government will interact with these American brands in the future and how they will change their global layout are issues that must be continuously paid attention to. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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