Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High
zerohedge.com / by Tyler Durden / Jan 9, 2017 1:36 PM
Agree with his proposed policies or not, it’s difficult to argue that Trump is delivering on his promises to the autoworkers of the Midwest who single-handedly voted him into the White House. Before even taking office, the mere threat of import tariffs has caused Ford to cancel the construction of a $1.6 billion new facility in Mexico, and has automotive CEO’s from Toyota to Chrysler walking on eggshells as they carefully try to flaunt all of the capital investments they’re making in U.S.-based facilities.
While likely secretly hoping for the status quo, Fiat Chrysler’s U.S. CEO, Sergio Marchionne, admitted earlier today that if Trump’s import tariffs are “sufficiently large” he would be forced to shutter all of his manufacturing capacity in Mexico as it would be rendered “uneconomical.” Per the FT:
Fiat Chrysler may close its Mexican car plants if Donald Trump imposes sufficiently stringent tariffs on vehicles coming into the US, chief executive Sergio Marchionne said on Monday.
“It’s possible that if economic tariffs are imposed…and are sufficiently large, it will make production of anything in mexico uneconomical and we would have to withdraw,” he said in Detroit on Monday. “It’s quite possible.”
The post Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High appeared first on Silver For The People.