Monday, January 9, 2017

GM: Trump won"t drive us out of Mexico


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General Motors chief executive has no plans to change where the auto giant produces small cars because of criticism from President-elect Donald Trump.

CEO Mary Barra said Sunday night the auto business has long lead times for where it produces vehicles, with decisions made two to four years ahead.

Last week, Trump threatened on Twitter to slap a border tax on GM for importing the compact Chevrolet Cruze to the U.S. from Mexico.

As it turns out, GM imports only a small number of Cruze hatchbacks from Mexico, and Barra said it makes all of the sedans at a factory in Lordstown, Ohio, near Cleveland.

Asked whether she was worried about a possible tariff, Barra said it was too early to speculate. GMs strategy, she said, has much more in common with Trumps goals for trade and jobs than differences.

I very much look forward to being part of the solution that allows the country to be strengthened along with business, along with our manufacturing capability, she said at an event in Detroit unveiling the new GMC Terrain small sport-utility vehicle.

Production of the Terrain will move to Mexico from a plant in Ingersoll, Ontario, for the new model year. The Ingersoll plant will still make the Equinox, GMs best-selling small SUV.

The president-elect is badgering the auto industry to get companies to stop making cars in Mexico and shipping them back to the United States in an effort to preserve jobs.

He has also criticized Ford and Toyota. Last week, Ford canceled plans to build a small car factory south of the border, but it announced 700 new jobs in Michigan.

The company, however, still plans to shift production of the compact Ford Focus to an existing Mexican plant. Jobs at the Detroit-area factory that now makes the Focus will be preserved because the plant will get a new SUV and small pickup truck.

Barra is part of a group of CEOs that will advise Trump on economic issues.

with associated press

source: http://nypost.com/2017/01/09/gm-trump-wont-drive-us-out-of-mexico/

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