GM: Trump's threats won't change the company's plans

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GM: Trump's threats won't change the company's plans

Post by confuzzled dude on Mon Jan 09, 2017 9:06 pm

Mary Barra, the CEO of General Motors, isn't letting Donald Trump change her company's plans.

Speaking to reporters at a GM event in Detroit, Barra said GM's small-car production will stay in Mexico, since manufacturing and plant investments are not easily changed, the Wall Street Journal reports. "This is a long-lead business with highly capital-intensive investments—decisions that were made two, three and four years ago," Barra said.

Barra's comments come after the President-elect threatened the company with a "big border tax" for importing some Chevrolet Cruze compact cars from a plant in Mexico. But those models represent less than 5% of the Cruze cars sold in the U.S. The rest are manufactured at GM's Lordstown, Ohio, factory.
GM is not the only motor company that has faced criticism from the President-elect. Trump has also knocked Toyota for its Mexican production plans, which the company responded to on Twitter. And Trump has threatened the German auto-maker BMW with steeper import taxes for opening a plant in Mexico, but the company reaffirmed its commitment to the plan.

On the other hand, Ford (F, -1.02%) has cancelled its plan to build a $1.6 billion plant in Mexico in favor a facility in Michigan—though it said the decision was not a result of Trump's pressure.
http://fortune.com/2017/01/09/donald-trump-general-motors-mary-barra/

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