Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High

Zero Hedge ^ | 1/9/2017 | Tyler Durden

[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.”

[lafroste]

Hey Mexico! Wanna bet that you're not going to willingly, with a smile on your face, pay for that wall? Well? Wanna bet?

[HombreSecreto]

BWAHAHAHAHAHAHAHAHAHAHAHAHAHA!

So much WIN

Go Trump - MAGA

[Regulator]

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.

[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...

[FreeReign]

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

[central_va]

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.

[CodeToad]

So? Seems like a win for America.

[central_va]

“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.

[tired&retired]

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

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

[kingu]

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.

[BBB333]

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.

[eyeamok]

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

Which will soon make all this moot.

[tumblindice]

[Liberty Valance]

[WMarshal]

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.

[Salamander]

Your post reminds me of this scene in “Desperado”

[not work or kid friendly..language]

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

[BenLurkin]

[Liberty Valance]

LOL!

[telstar12.5]

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

Death traps anyway.

[dfwgator]

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

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