Politics

Trump Tweets To GM: Make Cars In US Or Pay "Big Tax"

| by Ray Brown

President-elect Donald Trump threatened to charge car manufacturers a heavy import tax if they continue making cars in Mexico.

“General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!” Trump tweeted at 7:30 a.m. on Jan. 3.

But GM fired back at Trump.

"All Chevrolet Cruze sedans sold in the U.S. are built in GM's assembly plant in Lordstown, Ohio," the company said in a statement, according to CNBC. "GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S."

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General Motors said it sold 190,000 Cruze cars in the United States during 2016 alone, reported Reuters. About 185,500 were built at the GM plant in Lordstown, Ohio. The rest were built in Mexico and then sold in the United States.

But Trump's tweet appeared to have some reverberation in the car industry, even though it might have just been a coincidence.

Hours after Trump's tweet, Ford announced it would scrap plans to open up a $1.6 billion car manufacturing plant in Mexico and instead invest in $700 million in Flat Rock, Michigan, creating 700 jobs, reported CNBC.

Ford President and CEO Mark Fields told Reuters there was no “quid pro quo” discussion with Trump “because there was no negotiation.”

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Fields did say, however, that Ford is optimistic about the incoming Trump administration potentially lowering taxes and lessening regulations.

"We're also encouraged by the pro-growth policies that President-elect Trump and the new Congress have indicated that they will pursue," Fields said in a statement.

Sources: Donald J. Trump/Twitter, CNBC, Reuters / Photo Credit: Gage Skidmore/Flickr

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