Trumping Automotives

Date: 10 NOV 2016posted by Car Rentaledited by WinX

President-elect Trump has not even taken office and the dust from victory in the election not even settled, he has made huge impacts on the auto industry. The election held not even 48 hours ago, puts Republican Donald Trump as the 45th US president. This has already put new pressure on automakers and manufacturers that depend on open trade with Mexico. Shares fell for US automakers and suppliers which rely on production in Mexico to provision their US manufacturing and sales operations. GM dropped as much as 4 percent on Wednesday before recovering some of that in the late afternoon. Ford shares were back up 1.2 percent in late afternoon after sliding earlier in the day. Tesla Motors lost 3.3 percent, and they could be in quite an ordeal if a Trump administration cuts federal support for electric cars.

Big automotive parts makers that has a stake in Mexico were also hit - Delphi Automotive fell nearly 6 percent and Canada's Magna International were down 3.7 percent. During the electoral campaign, Trump has expressed bringing back automotive jobs back into the US. A message that was clear and helped him win the election. US vehicle manufacturers and many of their part suppliers have stakes in Mexico which amount to billions of dollars in investments. Ford in April announced plans to invest $1.6 billion to expand production of small cars in Mexico. GM similarly had planned to invest $5 billion themselves in Mexico. Both of these companies were targeted by Trumps rhetoric. As it stands, Trump's trade policies could add $5000 or more to the price of a small car from Mexico.

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