USA consumers may be getting ready to pay a little extra for their next vehicle purchase as President Trump revs up threats of 25% tariffs on imported cars.
The president also said other countries sending their cars to the USA have been taking advantage of the situation for decades.
GM said numerous US employees affected by the plan announced Monday would have the opportunity to shift to other plants where the company would need more workers to support growth in trucks, crossovers and SUVs. The ability to make more components in the US would help BMW address local content rules, according to Bloomberg. The changes come as part of a global restructuring for the company, which has said it will move away from lower-selling sedan models to focus on electric and autonomous cars, as well as crossovers, SUVs and efficient trucks.
The stakes for Trump with mass GM layoffs are especially high given the United States president's vows to revive smaller cities and towns throughout the rust belt that have suffered job losses that Trump blames on bad trade agreements negotiated by his predecessor. Sherrod Brown hold at least one common goal: getting General Motors (GM) to abandon its plan to lay off workers at an OH plant.
As he has done with several companies since he took office, Trump promised retribution for GM if it closes the plants.
BMW Group Chairman and CEO Harald Krueger on Tuesday told reporters that his company could consider a second plant in the U.S. It now runs an assembly plant in SC, and will officially open a factory in Mexico next year. The earlier rally was linked to Chief Executive Officer Mary Barra's plan to bolster cash flow by canceling production at five plants in the USA and Canada and jettisoning slow-selling sedans from the lineup.
"The president wants to see American companies build cars here in America not build them overseas and he is hopeful that GM will continue to do that here", she said.
Economic advisor Larry Kudlow has told a press conference at White House that "the president said there is a good possibility that we can make a deal and he is open to it".
Dias said he would meet with the United Auto Workers on Wednesday and discuss the possibility of "mass actions" in GM plants across the two countries.
Hundreds of General Motors workers and their families have gathered in OH for an emotional prayer vigil over the closure of their plant and the loss of 15,000 jobs across the company.
Lighthizer said, "At the president's direction, I will examine all available tools to equalize the tariffs applied to automobile". "The U.S.A.is booming!" he tweeted. "If we did that with cars coming in, many more cars would be built here".
Lawmakers from states with a heavy auto industry presence would likely move to try to block any White House effort to cut off federal subsidies, possibly setting up a showdown between Trump and Rust Belt Republican members.
While his latest comments mark an escalation in frustration over GM's restructuring plan, the administration has always been considering imposing new tariffs on vehicle imports.