Will Trump use the carrot, the stick, or both, during his meeting with Detroit's Big 3 CEOs. White House spokesperson also said that that Trump is working in order to bring back the major jobs in usa for American citizens.
Trump, who was inaugurated as the nation's 45th chief executive on Friday, held the breakfast meeting in the Roosevelt Room and promised to the dozen business leaders gathered there that he plans to follow through on campaign promises to slash taxes and regulations on corporate America. GM and Ford last built new USA assembly plants in 2004, while Fiat Chrysler opened a new transmission plant in IN in 2014.
With flattening US auto sales and some excess capacity, USA automakers may be reluctant to agree to open new plants, which likely would not come online for several years. The German automaker also noted that its SUV plant in SC is its largest plant worldwide.
Between them, foreign automakers employ tens of thousands of workers at their US facilities.
BMW and VW have about 12,000 workers between their plants in Spartanburg, South Carolina, and Chattanooga, Tennessee. Ford has a plant in Kentucky that makes the Lincoln MKC SUV and Ford Escape and reportedly was looking to move production for the Lincoln model, though the company scrapped the plan. On Jan. 20, shortly after Trump was inaugurated, the new White House website replaced the Obama administration's page on climate change with an outline of the new administration's energy plans, according to Newsweek.
Fast forward to the present month and day and see the billion dollar announcements from the Detroit Three, which are General Motors, Ford, and Fiat Chrysler. Together, they now have more than 230,000 employees in the U.S.
Last week, GM confirmed it would invest an additional $1 billion in its US factories this year and would move some parts production from Mexico to the USA that was previously handled by a supplier. Those U.S. job gains exceed each company's total employment at their Mexican plants.
Trump's comments are the latest indication he intends to deliver on his campaign promises to cut pollution laws and boost the fossil fuel industry. Numerous plans were promised in 2015 labor deals with the United Auto Workers union. "These investments and hiring plans have always been in the works". It also announced plans to invest $700 million of that savings into a MI plant where it will make new electric and autonomous cars.
'But you have a lot of plants from a lot of different items built in the United States.
Trump has attacked all the major auto companies over plans to import vehicles, particularly from Mexico, for sale in the US.
New assembly plants cost General Motors Co., Ford Motor Co. or Fiat Chrysler Automobiles NV about $1 billion - the sort of investment companies look to avoid making as a market peaks.
The three auto makers have been criticized by Mr. Trump for producing their vehicles in Mexico, and then exporting them to United States.
"I need clarity, and we need rules", said Fiat Chrysler CEO Sergio Marchionne at the Detroit auto show this month.