What could change the presidency of Donald Trump in the US auto industry?
- The election of Donald Trump at the White House could signal more protectionism on the part of the United States (this is the policy that was advocated in the program presented by Donald Trump during the election campaign).
- Today, 60% of vehicles sold in the United States are produced in the United States.
Imports represent 40% of sales, 10% from Canada, 10% from Japan and 10% from Mexico. By 2016, nearly 1.7 million vehicles come from Canada, both from Japan and Mexico.
Imports represent 40% of sales, 10% from Canada, 10% from Japan and 10% from Mexico. By 2016, nearly 1.7 million vehicles come from Canada, both from Japan and Mexico.
- Donald Trump announced that he wanted to renegotiate NAFTA and, in case of failure, slap a tax on imported vehicles (especially a 10 to 35% tax on cars coming from Mexico).
- It will be difficult for it to implement such a measure which:
- Would have the effect of significantly increasing the price of vehicles currently produced outside the USA
(the cost of labor is four times lower in Mexico than in the USA).
(the cost of labor is four times lower in Mexico than in the USA).
- Induce distortions of competition (investments were made in a given economic context).
- Would require the reopening of recently closed plants or the construction of new factories on US soil, with all the current US capacities of the order of 12 million vehicles being saturated.
- The status quo could ultimately prevail, with some possible political changes at the margin.
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