As expected, President Donald Trump encouraged chief executives of General Motors, Ford and Fiat Chrysler at a Tuesday (24 January) breakfast meeting to increase production in the US and boost employment there, media reports said.
Reuters said Trump began a meeting with GM’s Mary Barra, Ford’s Mark Fields and Fiat Chrysler’s Sergio Marchionne at the White House by saying he wants to see new vehicle plants built in the United States. He promised to cut regulations and taxes to make it more attractive for businesses to operate in the US.
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“We have a very big push on to have auto plants and other plants – many other plants,” he told Reuters at the start of the meeting with auto executives. “It’s happening.”
The news agency said the meeting was the latest sign of Trump’s unusual 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”.
Marchionne told Reuters after the meeting that Trump did not give them specifics on what regulations he would cut.
In a statement, FCA US said Marchionne had reiterated that Trump’s desire to build a strong manufacturing base in the US is a common goal shared by the automaker.
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By GlobalData“I appreciate the president’s focus on making the US a great place to do business. We look forward to working with [him] and members of congress to strengthen American manufacturing.”
FCA added it had committed spending of over US$9.6bn for its US manufacturing facilities and created 25,000 new jobs since 2009.
Fields told Reuters automakers wanted to work with Trump to create a “renaissance in American manufacturing.”
“We’re very encouraged by the president and the economic policies that he’s forwarding,” Fields said, praising Trump’s decision to withdraw from the Trans-Pacific Partnership agreement which Fields said did not address intervention in currency valuations by trading partners.
“As an industry we’re excited about working together with the president,” he added.
Barra told Reuters there was a “huge opportunity” to work together with the government to “improve the environment, improve safety and improve the jobs creation”.
Her official statement said: “We had a very constructive and wide-ranging discussion about how we can work together on policies that support a strong and competitive economy and auto industry, one that supports the environment and safety. The US is our home market and we are eager to come together to reinvigorate US manufacturing. We all want a vibrant US manufacturing base that is competitive globally and that grows jobs. It’s good for our employees, our dealers, our suppliers and our customers.”
The report said Tuesday’s meeting included former Republican governor of Missouri, Matt Blunt, head of a US automaker trade association. Vice President Mike Pence, White House chief of staff Reince Priebus and other senior administration officials.
This reportedly was the first time CEOs of the ‘big three’ automakers have met jointly with a US president since a 2011 session with Barack Obama talking up a deal to nearly double fuel efficiency standards by 2025.
Barclays auto analyst Brian Johnson said in a note cited by Reuters on Tuesday he thought automakers would be willing to agree to bring back jobs to the US (whether by voluntary commitments or tariffs or border taxes was less clear) in return for a slower introduction of (fuel efficiency) targets and related state-set rules.
