Global automakers on Monday prompted the Trump administration not to end the North American Free Trade Agreement and revealed hope the United States, Canada and Mexico can successfully conclude a modernized and enhanced trade pact.
Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne, who announced recently plans to move heavy pickup truck production from Mexico to Michigan by 2020, stated he hoped the Trump administration would “retune” a few of its trade talk demands.
Trump has threatened to withdraw from NAFTA, which is greatly used by automakers that have production and supply chains spread out throughout the three nations.
Marchionne, speaking at a news conference at the Detroit auto show, stated FCA’s truck production shift in part “goes a long way I believe in dealing with a few of President Trump’s concerns about the dislocation of production capability out of the United States.”
That decisions lowers the threat those trucks would be hit with a 25 percent tariff if NAFTA unwinds.
Ford Motor CEO Jim Hackett on Sunday informed press reporters NAFTA requires “to be modernized,” adding that of Detroit’s Big Three automakers, Ford has the greatest percentage of U.S.-built vehicles.
“We’ve got a huge dedication to our nation and it’s shown in the numbers,” he stated.
Unlike General Motors and FCA, Ford does not develop trucks in Mexico.
GM CEO Mary Barra on Saturday was positive about NAFTA, that it will endure with enhancements. Other senior GM executives stood by the company’s plans to continue developing trucks in Mexico.