The President-elect Donald Trump has clearly shown his bitterness towards the Mexican trade agreement. Recently, he tweeted about this and it has resulted in Ford pulling back from Mexico. Donald Trump had also called out General Motors in his tweet warning that the company has to face a big border tax for importing Mexican produced cars to the USA. Currently, the General Motors imports Chevrolet Cruze Hatchback, produced in Mexico to the USA.
Mary Barra talked to the reporters after revealing the 2018 GMC Terrian. She said that the company has some plans for the vehicle for quite some time. Barra commented that the GM is a huge business with numerous capital intensive investments. The decisions about these investments were taken a few years ago. In the Cruze Sedan market, the Cruze Sedan made for the USA market is built in the USA. The Cruze Sedans are manufactured in the Lordstown Assembly plant in Ohio. The newer hatchback versions of this Cruze Sedan are made in Mexico. About 4,500 Cruze Sedans were sold in the previous year.
General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A.or pay big border tax!
— Donald J. Trump (@realDonaldTrump) January 3, 2017
It was rumored that Barry spoke with Donald Trump after his tweet on Tuesday. Trump had expressed his unhappiness about the General Motors sending its Mexican made cars to US dealers using the tax-free option. During his presidential campaign, Trump boldly said that he has plans to impose a 35% tax vehicles that are made in Mexico and imported. He criticized Toyota Motor Corp in the past week when the auto company planned the building of Corollas in the Mexico for the USA market. Trump also appreciated the decision of Ford to pull back from its automobile manufacturing plant scheduled for construction in Mexico.
Barra commented that there is a lot going on in the market and it is now too early to discuss tariffs and the effect on GM. She added that she believes that the company has many policies aligned with the Trump administration. She was not interested in talking about a possible discussion with Trump. Barra said that the staff of GM are always in continuous talks with the government administration considering the magnitude of the organization and the number of jobs it produces.
Barra concluded saying that the new terrain SUV of GM will be manufactured and built in Mexico according to the plan. Currently, it is being manufactured in Canada and the decision had been taken long back. It is also expected that Barra will be a part of the group advising Trump on his economic policies. The group is scheduled to meet in February after Donald Trump assumes office in the White House.
Mexico’s economy is heavily reliant on the automobile sector and several top brands had planned to invest in the country. Due to the aggressive political nature of Donald Trump, automobile sector may be affected heavily when Trump implements his border tax policy. The entire world is waiting to watch the economic changes that will be catapulted by Trump’s administrative policies.