Friday, January 6, 2017

GM, Ford, Toyota : When Donald Trump attack the automobile on Twitter – TF1

By Matthew LAURAUX|Written for TF1|2017-01-06T18:04:58.629 Z, updated 2017-01-06T18:05:02.230 Z

In a few days, the newly elected president of the United States of America Donald Trump has attacked the three main automobile manufacturers of the country, General Motors, Ford and Toyota. Why and how have they responded ?

General Motors, Ford and Toyota, why Donald Trump attack the automotive groups and can it really change the game ?

To begin 2017, no best wishes for the new president of the United States of America, elected the 8th of last November, attacking directly the automotive sector. Although it does not fit into function the 20 of January next, Donald Trump already tries to influence the decisions of manufacturers, probably from the list of the largest sales in 2016.

Step 1 : General Motors

Because yes, the first to have "suffered" a tweet is General Motors (Chevrolet, Cadillac, Buick, GMC or Opel) on 3 January, the leader of the past year with 3.042.775 registrations recorded.

"General Motors sends Chevrolet Cruze manufactured in Mexico to its american dealers tax free. Manufacture in the United States or pay the import taxes !"

Small precision : the Chevrolet Cruze is manufactured in Mexico, but only in its version 5 doors hatchback "down", popular in the country, but much less on the territory of the u.s., in contrast to the classic 4-door meeting in the United States in the factory in Lordstown, Ohio. Already more expensive than the sedan of about 1,000 euros, the Hatchback sees its future threatened, since General Motors has the option of applying the 35% tax – increasing the base rate of 7,850 dollars – or to relocate the building in the Ohio, so with a price increase, as a result of the transfer and of the workforce more expensive. Or, given the negligible sales, the Chevrolet Cruze Hatchback could be simply removed from the catalog.

Whatever the scenario, the consumer suffers as a result, or by the increase of prices or lack of choice, and the american economy were no better.

The Chevrolet Cruze hatchback presented at the Salon of Detroit 2016

Chevrole   t Cruze Hatchback Show Detroit 2016

Step 2 : Ford

Here, not to tweet directly, but a direct consequence of the movements of Donald Trump. The same day, 3 January 2017, Ford announced the cancellation of the investment of $ 1.6 billion in its new mexican plant, preferring to inject $ 700 million to its current site in Michigan, resulting in 700 job creations.

This decision was in response to three events : the threat made it a few week to those investing in Mexico to sell their products on the floor us a tax of about 35 per cent, the meeting of the new president with the ex-CEO of Ford, Alan Mullaly, and finally the tweet is directly addressed to General Motors. Ford, group n°2 in the United States in 2016 with 2.6 million registrations, was the 2nd on the black list of Trump after GM.

The future president also thanked the company to the blue Oval – for not to say get to the merits – by a message :

“Thank you to Ford for having removed a new plant in Mexico and created 700 jobs in the USA. This is just the beginning, more is to follow…"

Step 3 : Toyota

The japanese manufacturer has no root in the United States, but is very much linked to the country because there is the number 3, resulting in 2.45 million sales last year, not far from Ford. On January 6, 2017, which is 3 days after General Motors and the sudden decision of Ford, Toyota is the third on the list of Donald Trump, who sent a tweet or aggressive :

"Toyota Motor has declared to build a new factory in Baja, Mexico, to produce the Corolla for the United States. NO QUESTION ! Build in the United States or pay the import taxes.

Rather than ignore, such as General Motors and / or contract like Ford, Toyota responded in a press release :

"Toyota is part of the heritage of the industrial United States since 60 years. The volume of production and employment in the country will not be reduced, despite our new plant in Guanajato, Mexico, announced in April 2015. With no less than 22 billion euros invested directly in the United States, 10 plants of assemblies , 1.500 dealers and 136.000 employees, Toyota will collaborate with the government to Trump in order to serve the interests of both consumers and the automotive industry."

The Toyota Corolla american vintage 2017

Toyota Corolla USA 2017

The group nippon will therefore "work”, but shall not assign pas to the injunctions of Donald Trump. He also stated to be "the smallest importer of used vehicles from Mexico in 2016", and that "the 160,000 cars manufactured in the USA have been exported to 40 countries by 2015".

The Corolla, a compact sedan, is one of the top-selling cars in the u.s. market, with 378.210 copies of anything in 2016, so the model number 2 just behind the Camry (388.618 units) and ahead of the RAV4 (352.154 units). To give you an order of magnitude, the Corolla in the United States represents more than Peugeot in France (356.000 example).

Fiat-Chrysler (FCA), Honda and Nissan, respectively 4th, 5th and 6th groups of the most popular in the United States in 2016, will they be the next target of Donald Trump ? Case to follow.


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