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How Ford and GM will deal with the Trump Administration


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On 11/20/2024 at 5:36 PM, mackinaw said:

I’m very interested to see how it’s gonna play out now that Trump is back in power. I’m concerned how his policies might affect trade with Canada. His administration could very well slap tariffs on Canadian made vehicles as well so I will be watching closely.

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GM and Ford have significant production based in Mexico so if tariffs come in,

the whole reason for moving / having production there completely evaporates…..

 

Also, the F Truck decision for Oakville now looks very shaky……

It feels like the new administration is about to reneg on USMC deal.

Edited by jpd80
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21 hours ago, jpd80 said:

GM and Ford have significant production based in Mexico so if tariffs come in,

the whole reason for moving / having production there completely evaporates…..

 

Also, the F Truck decision for Oakville now looks very shaky……

It feels like the new administration is about to reneg on USMC deal.

I’m cautiously optimistic things will go ahead as planned. Stamping plant construction starts soon. Ford had to have forecasted the possibility of Trump winning again, I would like to think many scenarios were discussed. 

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On 11/23/2024 at 11:55 AM, silvrsvt said:

In the grand scheme of things, I doubt Trump is going to be able to do 25% of the things he has talked about. 

Latest report is he intends to move forward with 25% tariff on all goods from Mexico and Canada.

That will hurt all the wrong people, it takes companies years to rip up plans and change to something else.

 

 

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1 minute ago, jpd80 said:

Latest report is he intends to move forward with 25% tariff on all goods from Mexico and Canada.

That will hurt all the wrong people, it takes companies years to rip up plans and change to something else.

 

Not sure how that is going to work with USMC deal that he implemented...I'm guessing that the tariffs are going to be used as leverage for other things that are more important. 

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41 minutes ago, silvrsvt said:

 

Not sure how that is going to work with USMC deal that he implemented...I'm guessing that the tariffs are going to be used as leverage for other things that are more important. 

He renegotiated NAFTA into USMC, I can see him tearing the thing up and saying this is how it’s gonna be.

Ford’s immediate exposure
Maverick, Bronco Sport, Mach E, 

Super Duty Engines, 6.7 Powerstroke, 6.8/7.3 Godzillas

Coyote 5.0 V8 for F150 and Mustang

 

While that looks bad, I’d rather be in Ford’s shoes than GM,

they have a lot more Mexican built products

Edited by jpd80
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More info on the USMCA

https://www.investopedia.com/usmca-4582387

This is kinda interesting:

 

How Long Does the USMCA Remain in Effect?

The USMCA was approved by the United States, Mexico, and Canada for 16 years. But, the agreement is up for review by the three nations in July 2026. That's six years after it went into effect. The three parties must decide whether to renew it for anothef 16 years.5

Congressional Research Service. "U.S.-Mexico-Canada (USMCA) Trade Agreement," Page 1.

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2 hours ago, Chrisgb said:

Now Trump is saying that he's going to levy a 25% tariff on Mexican and Canadian goods. He and PM Trudeau are talking. 


 Not exactly.  He said unless they help secure their borders.  He’s just bluffing to get their assistance.

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51 minutes ago, akirby said:


 Not exactly.  He said unless they help secure their borders.  He’s just bluffing to get their assistance.

I agree with you that he’s saying this to get quicker actions from these countries. 

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19 hours ago, jpd80 said:

Latest report is he intends to move forward with 25% tariff on all goods from Mexico and Canada.

That will hurt all the wrong people, it takes companies years to rip up plans and change to something else.

 

 

Look also at the reason he would impose the tariff. Lack of cooperation on illegal migration or drug trafficking. Those tariffs are also a great barrier to trade desired by Mexico and Canada. Think that is incentive for Mexico and Canada to aid some American efforts. And no, I don't expect Mexico to build a wall. This is as far as I will go. Don't want to be too political. 

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43 minutes ago, Rick73 said:

I expect companies will be more reactive after the fact rather than try to anticipate much of anything.

 

The companies are begging the President elect for stability and predictability with regulations

 

"In a previously unreported Nov. 12 letter to Mr. Trump, John Bozzella, president of the Alliance for Automotive Innovation, which represents 42 car companies that produce nearly all the new vehicles sold in the United States, wrote that in order for the auto industry to remain “successful and competitive,” it needed “stability and predictability in auto-related emissions standards.”"

 

"Virtually all auto executives expect electric vehicles to displace gasoline cars over time and if the American carmakers falter now, they risk being overtaken by carmakers from Europe and China."

 

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3 hours ago, akirby said:


 Not exactly.  He said unless they help secure their borders.  He’s just bluffing to get their assistance.

Trump has said that he will implement these tariffs if there is not cooperation from Canada and Mexico to solve the illegal immigration and illegal drug (especially fentanyl) trafficking problems. I don't view it as a bluff but it is clearly a negotiating tactic and he will likely achieve some positive results.

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There’s no winners in a trade war between USA Canada and Mexico, this time around both leaders know who Trump is and will act accordingly with their own tariffs

 

This is going to get interesting fast, expect clarification from 47 in the next few weeks..

 

Ford and GM must be worried at the moment.

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2 hours ago, jpd80 said:

There’s no winners in a trade war between USA Canada and Mexico, this time around both leaders know who Trump is and will act accordingly with their own tariffs

 

This is going to get interesting fast, expect clarification from 47 in the next few weeks..

 

Ford and GM must be worried at the moment.


Mexico’s president stated she will respond with similar tariffs on all US imports.  Also in the news were that higher costs will be passed down to consumers (buyers) according to some US companies.  I expect essentially all companies in time will do the same.

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14 hours ago, Texasota said:

Trump has said that he will implement these tariffs if there is not cooperation from Canada and Mexico to solve the illegal immigration and illegal drug (especially fentanyl) trafficking problems. I don't view it as a bluff but it is clearly a negotiating tactic and he will likely achieve some positive results.


Its a negotiating tactic for sure, but I just don’t see him following through with it due to the short term economic impacts.

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10 hours ago, Rick73 said:

Also in the news were that higher costs will be passed down to consumers (buyers) according to some US companies.  I expect essentially all companies in time will do the same.


No shit Sherlock.  There is no option - added costs whether it be tariffs or taxes or rent or fuel - always get passed along to the consumer.  There is no other option for a company to maintain profits.

 

Thats why I hate high income taxes on businesses.  We end up paying it regardless and it makes it more difficult to attract businesses to the US when they have cheaper global options.  I’d rather see a higher sales tax if taxes have to be raised.

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