Auto Industry Gears Up For Change Under Trump
One of the best things to have happened to the Automobile industry in America was the decision of the Obama administration to bail it out. The bailout was even supported by policies that are designed to create more jobs, enhance safety and improve fuel economy in the nation. The effects of the policy are glaring and cannot be denied by the major players in the industry.
With Trump’s administration coming on board, the industry looks forward to seeing what he has up his sleeve for the automobile industry. During the campaign, Trump has continuously made it clear that he is interested in creating more jobs in the auto industry. His campaign promises to include the renegotiation of the North American Free Trade Agreement, an agreement that is aimed at fostering business deals between countries in North America. Another campaign promise of Trump is to put in place policies that will help reduce gas emissions. Various car makers in America have invested in neighbouring countries for the production of vehicles because of the cost of production in these countries. When vehicles are completed in these countries such as Mexico, they are exported to America and sold to several clients in the American market. Ford Motors, the second largest carmaker in America came under severe criticism during the campaign period as Trump kept on talking about the company’s decision to produce their vehicles in Mexico; an act which most analysts in the industry believed has forced Ford Motors to continue manufacturing the Lincoln Sport Utility Vehicle in Kentucky and even made it public.
A further investigation into the profile and antecedents of Mr. Trump’s nominations for the department that monitors the activities of Automobile industry, has shown that the sector may be experiencing slight changes in the brands of cars that will be produced in the coming years. Trump is just looking for ways to keep more jobs in the United States of America by ensuring these car makers do not take jobs outside America. It is most likely that Trump will propose a policy of 35% tariff to discourage these car manufacturing companies from producing their vehicles outside America. Though the application of this tax will hurt the auto industry, as most car manufacturing companies such as General Motors, Ford Motors, and Fiat have invested enormous capital in car plants outside the shores of America due to export-friendly policies and cheap cost of labour in these countries.
Impositions of tariffs like this will exert more economic pressure on the manufacturers of vehicles and increase the price of the vehicles which will discourage the buying of vehicles imported from countries like Mexico and Canada. The major players in the industry are eager to know the changes Trump is willing to bring to the automobile world. The auto industry has been known to adapt to changes in Government as it always looks forward to working in tandem with the Government of the day. It will be an excellent idea for Trump to let the players of the automobile industry know what amendments he is looking to bring to the fortunes of an industry which within the last six years, have aimed to increase vehicle production by 200% and offered employment opportunities to various people in America.
With Trump’s administration coming on board, the industry looks forward to seeing what he has up his sleeve for the automobile industry. During the campaign, Trump has continuously made it clear that he is interested in creating more jobs in the auto industry. His campaign promises to include the renegotiation of the North American Free Trade Agreement, an agreement that is aimed at fostering business deals between countries in North America. Another campaign promise of Trump is to put in place policies that will help reduce gas emissions. Various car makers in America have invested in neighbouring countries for the production of vehicles because of the cost of production in these countries. When vehicles are completed in these countries such as Mexico, they are exported to America and sold to several clients in the American market. Ford Motors, the second largest carmaker in America came under severe criticism during the campaign period as Trump kept on talking about the company’s decision to produce their vehicles in Mexico; an act which most analysts in the industry believed has forced Ford Motors to continue manufacturing the Lincoln Sport Utility Vehicle in Kentucky and even made it public.
A further investigation into the profile and antecedents of Mr. Trump’s nominations for the department that monitors the activities of Automobile industry, has shown that the sector may be experiencing slight changes in the brands of cars that will be produced in the coming years. Trump is just looking for ways to keep more jobs in the United States of America by ensuring these car makers do not take jobs outside America. It is most likely that Trump will propose a policy of 35% tariff to discourage these car manufacturing companies from producing their vehicles outside America. Though the application of this tax will hurt the auto industry, as most car manufacturing companies such as General Motors, Ford Motors, and Fiat have invested enormous capital in car plants outside the shores of America due to export-friendly policies and cheap cost of labour in these countries.
Impositions of tariffs like this will exert more economic pressure on the manufacturers of vehicles and increase the price of the vehicles which will discourage the buying of vehicles imported from countries like Mexico and Canada. The major players in the industry are eager to know the changes Trump is willing to bring to the automobile world. The auto industry has been known to adapt to changes in Government as it always looks forward to working in tandem with the Government of the day. It will be an excellent idea for Trump to let the players of the automobile industry know what amendments he is looking to bring to the fortunes of an industry which within the last six years, have aimed to increase vehicle production by 200% and offered employment opportunities to various people in America.
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