US Automakers Respond To Trump Win

Ford Michigan Assembly Plant (Credit: Ford)

Many were shocked by Donald Trump’s victory on Tuesday, while others are elated. American automakers are now facing a changing landscape. Some have already reacted to the news, which could be a mixed bag for them.

GM made a highly diplomatic statement after the results, congratulating both candidates. It also said working with the new administration and Congress is something it looks forward to. In an unrelated move, the company announced it’s laying off 2,000 workers thanks to slow sales.

Ford, which was Trump’s punching bag on the campaign trail, specifically offered congratulation to the President-elect, plus new state governors, members of Congress, etc. It then added a call for unity, matching Trump’s, to raise the US economy and spur job growth.

Fiat Chrysler also issued an official statement, saying it looks forward to working with Trump and Congress to “strengthen American manufacturing.” It stressed the $8.4 billion invested in this market since June 2009, creating almost 25,000 new jobs as a result.

Elon Musk said before the election that no matter who won, his company would be just fine.

One of the biggest changes likely coming down the pipeline are tariffs for foreign-made cars, especially ones from Mexico. The average vehicle could see a $5,000 or higher increase, and since more economical vehicles are made south of the border, there’s no practical way to absorb those costs. In other words, production for US consumers would likely move here, which is exactly Trump’s plan.