GM Won’t Move Chevrolet Cruze Hatchback Production From Mexico Following Trump Critcism
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President-elect Donald Trump has been placing automakers on his priority list for production criticisms as of recent, and General Motors was not left out.
Last week, Trump called out GM in a tweet for producing the 2017 Chevrolet Cruze hatchback in Mexico and threatened a “big border tax” for the automaker if the vehicle was not made in the U.S.
Yesterday evening, media asked GM CEO, Mary Barra, if there was any consideration to move the production line to the U.S. The short answer? No.
“This is a long-lead business with high capital-intensive investments, decisions that were made two, three and four years ago,” Barra said. “When you look at the Cruze sedan, the Cruze sedan for U.S. consumption is being built here.”
The Detroit News reports Barra spoke with the President-elect following his criticism, but she did not go into specifics surrounding the conversation.
“I think it’s safe to assume a company of our size with a significance and the number of jobs that General Motors provides in the United States that our staff is regularly talking to his staff and the communications are ongoing,” she said.
She also would not comment on how tariffs or taxes could affect GM stating, “There’s a lot of work to do. When you really look at some of the things the president-elect has said, we have much more in common than we have different.”
Barra was also tapped to join Trump’s economic policy group last year to provide a vantage point from the private sector. She and other CEOs will continuously advise the President-elect on future economic policy in the United States.
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How many Cruze hatchbacks are sold here? My guess is maybe 3%-5% of all Cruze sales are hatchbacks.
Not cost effective to move back here. Now, if they were already building them here and looking into moving that would be different. Decisions and investments made 2 – 4 years ago can’t just be undone.
It’s not like Toyota and Ford is going to shift their compacts to the US from Mexico. Besides if he did, then he would of told Barra to shift the Envision and Cascada from China and Poland to the U.S. and if not, throw the border tax
If he want to applu any import taxes, he should do it to all the importers and foreign brands, not to the North American brands (I include Canada and Mexico).
Anyway, he always says he will, but he cannot because all law changes must go through Congress. He is the last piece in that link, and the weakest!
Well here is what is up. The Cruze hatch is unproven to this point and most of the production will be sold outside the states. No need to start production here for a small number of cars that already cost more to make than the sedan. They can keep the price down with the ones they bring in.
Now if volume takes off and say it outsells the sedan then they could consider moving it here but as of now hatch sales have been weak compare to sedan sales and I think they are waiting to see what happens.
Ford moved their lines as they are seeing a change in how the president will deal with the economy and business. It is not just Ford but most companies that are seeing there will be a change to better help business thrive here again.
Now they can not move everything here but we will see more expansion than we have seen for a decade or better here.
All Trump is doing is sending a message. He is not expecting GM or anyone else to change plans on every tweet but he is telling them to look at what they have planned to help them and to consider also what may happen to hurt them in the future. This is long term stuff here and a way to get people to thing and companies to react to public scrutiny.
Just look at the stock market and how well it has done since the election. The predictions were if Trump would win the markets would crash. Well they should have removed the R and gone with Cash.
Our taxes and regulations had killed many business over the years and now they can see some room to come home and work again. Also they can bring money back and invest it vs. losing to the government to pay for social programs for people who stopped looking for work.
I expect GM to announce changes where it makes sense in the future with some of the new help from the government changes. They will be heard from in a positive way.
When Trump tweets it is a volley to get talks going and making deals. He is all about negotiating deals. He aims high and expects only a reasonable agreement. It is no different than what we see on pickers or pawn stars is is all in the art of the deal.
“Ford moved their lines…”
Interesting — please tell us: what lines to did Ford move from Mexico to the U.S.? Be specific, as I want to compare it to how GM kept the Cruze Hatch in Mexico — what did Ford move that was being produced in the Mexico?
The lines they had planned were not moved would be a better way to state this.
You know what I meant.
“The lines they had planned were not moved would be a better way to state this. You know what I meant.”
No. I actually don’t know. I am not trolling you.
What lines that were going to be produced in Mexico were moved to the U.S.? Was the Ford Focus moved back to the U.S.? It was not — it’s now going to be produced at an existing Mexican plant.
Or a related, but different, question — what lines that they were *going to* produce in Mexico did they move to the U.S.?
Again — I literally haven’t seen you list an actual example.
so our next president will be chumlee? he is going to be in charge of our nuclear weapons, economy, etc … that is reassuring.
He is not even in office and my stock are growing daily and his e mails have not been hacked. (He does not use e mail).
But be at ease I heard he will offer Hilary a place in his admin. He needs a new ambasitor to Benghazi.
for someone who railed against wall street and the elites, wall street seems to think they have a friend in trump. it must be all of those goldman-sachs guys he is picking to fill key positions in his cabinet.
of course that probably doesn’t bother you. if you fell for the birther con, i doubt the goldman-sachs con will cause a stir.
i shouldn’t be complaining. my banks stocks are up with the expectation that trump will make it easier for them to increase risk and if something goes wrong, the taxpayer will be there to pick up the pieces again.
Wall Street makes money one of two ways. They either do it though good business conditions or they have to go criminal when business goes stagnate with regulation and deep taxes.
Right now it appears to be that the conditions may be right again for them to make an honest buck with companies that can make money much easier without being regulated and taxed into the ground.
A man with income will pay his own way but a man that is desperate will move to desperate means.
let me get this straight … you are saying when businesses/ceos/etc break the laws, they did it because it is the government’s fault?
the criminals are the real victims.
did you pick up that twisted logic from trump u law school?
No I was expressing reality.
Like a man with food will not steal it. A man that is hungry will often attempt to steal it.
It is desperation and even in business some folks who are in desperate situations will resort to desperate measure. Is it right no, Is it legal no but more people are willing to take the risk if things are crumbling down around them.
The fact is many honest people have build a lot of good businesses but often due to unreasonable government taxation and regulation they are left to considering breaking the law due to desperation. Even people of means that are in trouble can and will make the wrong choice just as many on welfare are often there because they too make the wrong choices in life.
The bottom line is government and business need to work together for the betterment of America and stop all the agenda politics and social Justice to buy votes.
The Twisted logic is taking from those who did legally make a good living and giving it to those who really don’t want to work for it.
The place for the government is to help people get up and able to earn their own way not pay for them to live cradle to grave on the government dole.
I am not of privilege and I have had to work for what I have. I am proud to have done it on my own with no welfare and no unemployment. It can be done with the right choices in life but too many just want to do what they want not what they need to do.
We in this country today are teaching people it is wrong to be successful and rewarding them if they rely on the government.
That is why many come from Asia here and eat out lunch in starting business and in high academic scores in out same schools that many others say are deficient.
If a buck is made legally more power to the rich. They owe me nothing. On the other hand those on the Government dime are not giving me much on my investment in them with my taxes.
Many of the companies are going to Mexico not just because it is cheaper but the fact people in Mexico show up and they work. Here we can not get people to show up every day and many lose their jobs because they burn through their comp time.
mexico as a lot of trade agreements with foreign countries so they can ship the HB cruze from mexico without import duties in the countries where they are shipped. if shipped from the US the duties would apply