It is not only in Europe, China, Mexico or Canada: the US automobile sector fears that the rates imposed by Donald Trump, which come into force on Tuesday, provoke a collapse in automotive production within a few weeks.
This Sunday, Donald Trump reaffirmed that, after China, Mexico and Canada European Union “has to pay” From what it has created over the last few years to the US.
After the threat, the scholarship markets in the automotive sector opened, on Monday morning, with GENERALIZED LOSS OF MARCES LIKE MERCEDES, A BMW EA VOLKSWAGEN.
The solution to the US President is to “load” in tariffs-with the automotive sector to be especially aimed at. However, The USA themselves must be impaired.
In an interview with Canadian public broadcaster CBC, Brian KingstonPresident of the Canadian Association of Vehicle Manufacturers (CVMA) – which includes General Motors, Ford and Stellantis – said the industry “faces potential crises in North America, not only in Canada and Mexico, but also in the United States.”
Brian Kingston added that the customs rates imposed by the US President will result in Destruction of employment and in increases of “thousands of dollars” in car prices for US consumers.
Similar opinion expressed the president of the Auto Parts Manufacturers Association (APMA), whose organization brings together dozens of component manufacturers in Canada. Flavio Volpe predicted that “ production of parts and vehicles in North America will stop ”within a few days.
Linda HasenfratzPresident of one of APMA’s most important members, the manufacturer Linamar, even estimated to the Canadian newspaper The Globe and Mail that US production will stop in a week.
“It will create an exorbitant cost and our customers will not be able to absorb it. You consumers, of course, will not pay and demand will disintegrate“, These.
In the United States, Michauto (Michigan State Producers Association) criticized the tariffs and warned of the “collateral damage” they will cause.
“Our economies are closely linked,” said Michauto CEO Glenn Stevens, in a statement, referring to Canada.
At the moment, 40% of US General Motors production is made in Canada and Mexico. In Mexico alone, General Motors produces about 845,000 vehicles, most of which exports to the United States and Canada.
Ford produces over 350,000 cars in Mexico, which are exported to the United States, and the Japanese company Nissan produces 326 thousand.
