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Trump asks car makers to build new plants

Hire American, buy American and you can add build American cars in America to that list, Donald trump has met with senior motor industry officials.

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Source: AAP


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US President Donald Trump has pushed the chief executives of General Motors, Ford and Fiat Chrysler to increase production in the United States and boost American employment.

Trump opened a meeting with GM CEO Mary Barra, Ford CEO Mark Fields and Fiat Chrysler CEO Sergio Marchionne at the White House, saying he wants to see new auto plants built in the United States.

"We have a very big push on to have auto plants and other plants - many other plants," he told reporters.

The new Republican president, who took office Friday, vowed to cut regulations and taxes to make it more attractive for businesses to operate in the United States.

GM, Ford and Fiat Chrysler have all announced recent new jobs and investments in the United States, but are still investing in Mexico.

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GM in 2014 said it would invest $5 billion in Mexico through 2018, a move that would allow it to double its production capacity - and Barra has said the automaker is not reconsidering the plan.

Last week, Ford scrapped plans to build a $1.6 billion plant in Mexico and instead invest $700 million in a factory in Michigan.

Ford will still move production of Focus small cars to Mexico from Michigan, but will cut total production of the cars by consolidating their assembly in an existing Mexican plant.

US automakers have been reluctant to open new US auto plants in recent years, but they have expanded operations at existing US plants.

Tuesday's meeting included the former Republican governor of Missouri, Matt Blunt, who heads a US automaker trade association.

Trump has criticised automakers for building cars in Mexico and elsewhere and has threatened to impose 35 per cent tariffs on imported vehicles.

The meeting is the latest sign of Trump's uncommon degree of intervention for a US president into corporate affairs as he has repeatedly pressured automakers and other manufacturers to "buy American and hire American."

Tuesday's gathering was the first time the CEOs of the big three automakers have met jointly with a US president since a 2011 session with Barack Obama to tout a deal to nearly double fuel efficiency standards by 2025.


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