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Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High
Zero Hedge ^ | 1/9/2017 | Tyler Durden

Posted on 01/09/2017 11:22:23 AM PST by lafroste

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.”

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: automakers; automotive; fiat; fiatchrysler; mexico; trumpstillwinning; trumpwinsagain; win; winning
Hey Mexico! Wanna bet that you're not going to willingly, with a smile on your face, pay for that wall? Well? Wanna bet?
1 posted on 01/09/2017 11:22:23 AM PST by lafroste
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To: lafroste

BWAHAHAHAHAHAHAHAHAHAHAHAHAHA!

So much WIN

Go Trump - MAGA


2 posted on 01/09/2017 11:24:14 AM PST by HombreSecreto (The life of a repo man is always intense)
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To: lafroste

Showing that the Wall + Tariff threats are going to solve the Mexican government’s colonization strategy as well: keep your people in the country or we completely destroy your parasite economy, Reconquistas.

Thank God for a tactical fighter like Don Trump.


3 posted on 01/09/2017 11:26:16 AM PST by Regulator
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To: lafroste
How big can the car market be in Mexico? The only reason companies are building down there is to avoid US production (higher wages and regulations). Without NAFTA, there wouldn't be car production in Mexico.

GM needs to take notice...

4 posted on 01/09/2017 11:28:55 AM PST by Cowboy Bob
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To: lafroste

Do you still think Vicente Fox, that you will not be paying for that flipping wall?


5 posted on 01/09/2017 11:29:02 AM PST by FreeReign
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To: lafroste
Mr. Trump fight this trade war vigorously. We are not afraid of the globalists. Hitler and the Nazi's were globalists too and the USA beat the crap out of him. this war will be a piece of cake.

More tariffs and less income taxes.

6 posted on 01/09/2017 11:29:40 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: lafroste

So? Seems like a win for America.


7 posted on 01/09/2017 11:30:24 AM PST by CodeToad (If it weren't for physics and law enforcement, I'd be unstoppable!)
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To: lafroste
“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.”

He says that like it's a bad thing.

8 posted on 01/09/2017 11:31:00 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: FreeReign

Next will be “FAIR TRADE” negotiations with China...

All this winning and he is not even in office yet...


9 posted on 01/09/2017 11:31:30 AM PST by tired&retired (Blessings)
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To: lafroste

Hey Mexico, have you started thinking what you’re going to do with 6 million plus nationals who likely will be returning in the next 3 years who are hard working and used to a non-corrupt government yet?

Might be time to start planning.


10 posted on 01/09/2017 11:37:33 AM PST by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: Cowboy Bob

Honda has a plant in Mexico that builds the Fit and HRV.

The Pilot, Odyssey and Ridgeline are built in Alabama.

In Ohio the Accord (99% of the world production) and the CRV are built.

We export to other countries these American built vehicles, and import some from other countries...

It will be interesting to see how this plays out.


11 posted on 01/09/2017 11:38:43 AM PST by BBB333 (The power of TRUMP compels you!)
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To: lafroste

even if those purchases are fueled by a massive subprime auto lending bubble

Which will soon make all this moot.


12 posted on 01/09/2017 11:39:11 AM PST by eyeamok (destruction of government records.)
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To: lafroste
Charlie Sheen photo: Charlie Sheen for Prez. sheen_pres.jpg Charlie Sheen photo: Charlie Sheen for Prez. sheen_pres.jpg Charlie Sheen photo: Charlie Sheen for Prez. sheen_pres.jpg
13 posted on 01/09/2017 11:39:35 AM PST by tumblindice (America's founding fathers, all armed conservatives)
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To: lafroste

14 posted on 01/09/2017 11:41:43 AM PST by Liberty Valance (Keep a Simple Manner for a Happy Life ~ Vote!)
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To: lafroste
I wonder if Vicente Fox is beginning to regret his bombastic speeches, crude tweets, and spastic middle finger? President Trump is going to give Mexico a lesson it will never forget. A country cannot trash, threaten, attack, and prey upon a great power that is a neighbor, much larger, more dynamic, and extremely experienced in taking other countries down and then expect to get off without an epic beat-down.

I guess Mexico forgot why previous generations of Mexicans called America Coloso del Norte or the Colossus of the North.

15 posted on 01/09/2017 11:43:37 AM PST by WMarshal ( Schadenfreude, it feels so good!)
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To: lafroste

Your post reminds me of this scene in “Desperado”

[not work or kid friendly..language]

https://www.youtube.com/watch?v=qJyIiDt9x2E


16 posted on 01/09/2017 11:47:34 AM PST by Salamander (We're pain, we're steel, a plot of knives...)
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To: Liberty Valance

17 posted on 01/09/2017 11:48:54 AM PST by BenLurkin (The above is not a statement of fact. It is either satire or opinion. Or both.)
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To: BenLurkin
LOL!


18 posted on 01/09/2017 11:58:51 AM PST by Liberty Valance (Keep a Simple Manner for a Happy Life ~ Vote!)
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To: lafroste

I’m think America could get along without FIAT cars quite well.

Death traps anyway.


19 posted on 01/09/2017 12:00:13 PM PST by telstar12.5 (...always bring gunships to a gun fight...)
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To: telstar12.5
I’m think America could get along without FIAT cars quite well.

Yeah, but suddenly a lot of auto mechanics may find themselves unemployed.

20 posted on 01/09/2017 12:02:32 PM PST by dfwgator
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To: dfwgator

Yup! FIAT = Fix It Again Tony!


21 posted on 01/09/2017 12:11:14 PM PST by TaMoDee (Go Pack Go! The Pack will be back in 2016!)
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To: TaMoDee

I have no problem with foreign companies exporting products to the U.S. Fairly. Without “dumping”, selling products under production costs by using Government subsidies. I’m not sure Trump has targeted Fiat for tariffs. Never heard Trump say anything about Fiat. I could be wrong..


22 posted on 01/09/2017 12:24:34 PM PST by saleman
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To: saleman

Whoops. Didn’t realize that Chrysler now owned Fiat.

Never mind........


23 posted on 01/09/2017 12:26:05 PM PST by saleman
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To: Cowboy Bob
How big can the car market be in Mexico? The only reason companies are building down there is to avoid US production (higher wages and regulations). Without NAFTA, there wouldn't be car production in Mexico.

GM needs to take notice...


It seems to be about 1/6 the size of the US market. Quite a significant number at around 100,000 new registrations per year.

24 posted on 01/09/2017 12:28:05 PM PST by az_gila
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To: az_gila

US auto/trucks sales per year averages around 17 million. Mexico, 1 million. 1/17 of US sales.


25 posted on 01/09/2017 12:33:39 PM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: lafroste

There is some speculation that FCA (Fiat Chrysler Automobiles) is on shaky financial ground as it is. The Chrysler brand is now down to two models: The 300, and the Pacifica minivan. The Pacifica is new, but the 300 has kept the same basic design for nearly ten years. Dodge has a more varied lineup, but it has also continued on without a major redesign of any of its models for way too many years. The Fiat brand hasn’t exactly set sales records in this country. Jeep and Ram are moneymakers, but that’s it. I suspect FCA CEO Sergio Marchionne may use the tariff as the excuse for pulling the plug on FCA in North America. It’s possible that Chrysler and Dodge will be shut down, with Jeep and Ram sold off to another automaker.


26 posted on 01/09/2017 12:46:07 PM PST by GreenHornet
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To: lafroste

Okay, what’s too high and let’s set it immediately. And no L1 visas or H1B. Implement eVerify for current and future perm, part-time, and contract or subcontractor workers.


27 posted on 01/09/2017 12:53:44 PM PST by Reno89519 (Drain the Swamp: Replace Ryan & McConnell; Primary Lyn' Ted and others.)
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To: lafroste

Government creates poverty and the Mexican government has made Mexico poor for centuries.


28 posted on 01/09/2017 2:56:48 PM PST by captain_dave
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To: GreenHornet

I’d like to see Jeep belong to America again. Such an iconic symbol of WW II should never be owned by anyone else.


29 posted on 01/09/2017 2:59:04 PM PST by Mollypitcher1 (I have not yet begun to fight....John Paul Jones)
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To: TaMoDee

LOL In my day we used to call FORD, Fix Or Repair Daily.


30 posted on 01/09/2017 3:08:30 PM PST by Mollypitcher1 (I have not yet begun to fight....John Paul Jones)
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To: TaMoDee

LOL In my day we used to call FORD, Fix Or Repair Daily.


31 posted on 01/09/2017 3:15:12 PM PST by Mollypitcher1 (I have not yet begun to fight....John Paul Jones)
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To: Mollypitcher1

Also, FORD, Found On the Road Dead.


32 posted on 01/09/2017 3:15:58 PM PST by Mollypitcher1 (I have not yet begun to fight....John Paul Jones)
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To: central_va

I was looking at auto sales data here -

http://www.tradingeconomics.com/united-states/car-registrations

...but didn’t correct for monthly vs. yearly numbers...:^(

Still comes out as 7:1 though.

Perhaps because it’s passenger car numbers only, and not trucks?


33 posted on 01/09/2017 3:49:36 PM PST by az_gila
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To: FreeReign

Make the tax high! So high that people will re-think using cheap Mexican Labor to make things. Focus on Toyota now—force them to set their factory in America and not Baja Mexico! BUILD THE WALL! Man the wall, Make it a Great wall that will not be breached a Maginot Wall that can not be passed by man, beast or little boys.


34 posted on 01/09/2017 3:53:27 PM PST by Forward the Light Brigade (Into the Jaws of H*ll Onward! Ride to the sound of the guns!)
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To: saleman
it's casue they don't, Fiat owns Chrysler
35 posted on 01/09/2017 4:45:54 PM PST by Chode (may the RATS all die of dehydration from crying)
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To: Mollypitcher1

“I’d like to see Jeep belong to America again.”

***************************************

https://www.4wd.com/jeepresource/jeep-history.aspx

Designed by Karl Probst for Bantam, WWII production by Willys-Overland and Ford.

Ownership changes

In the second half of the 20th century, Jeeps continued to influence the way Americans used their automobiles. But despite the Jeep’s widespread influence, the ownership behind these popular vehicles remained in flux.

Kaiser-Frazier, an independent carmaker, purchased Willys-Overland in 1953 and changed the name to Willys Motor Company. The name changed again in 1963 to Kaiser-Jeep.

Seven years later, Kaiser sold its struggling Jeep division to American Motors Corporation (AMC).

AMC was then absorbed by Chrysler Corporation in 1987. In the years that followed, Chrysler would go through ownership changes of its own,

first merging with Daimler-Benz and then selling majority ownership to an equity sponsor to become Chrysler Group LLC.

Then Jan 21, 2014, FIAT bought Chrysler.

Fiat owns: Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, Ram and SRT


36 posted on 01/10/2017 9:25:21 AM PST by BwanaNdege ("The church ... is not the master or the servant of the state, but the conscience" - Luther)
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