On Monday, Fiat Chrysler Automobiles CEO Sergio Marchionne said that the company may end Mexican production if duties set in a Trump organization on vehicles made in Mexico and imported to the United States are too high.
“It’s possible, if the economic terms imposed by the U.S. administration on anything that comes into the United States that, if they’re sufficiently large that it would make the production of anything in Mexico uneconomical,” said Marchionne. “We would have to withdraw. It is quite possible.”
Marchionne, as have the vast majority of his automotive CEOs, said he needs to hold up to perceive what is proposed. He additionally said that FCA is set up to react to whatever policies are set in a Trump organization.
Marchionne clarified that hauling car production out of Mexico won’t be simple and won’t occur without any forethought, ought to the company need to settle on that choice.
“We can’t just pick up our toys and leave,” he said.
“The reality is the Mexican automotive industry has for a number of years now been tooled-up to try and deal with the U.S. market. If the U.S. market were not to be there, the reasons for its existence are on the line,” Marchionne said.
As indicated by the Ann Arbor-based Center for Automotive Research, the United States is the second-biggest vehicle market, behind China. Mexico represents a fifth of all vehicle production in North America and has pulled in more than $24 billion in auto venture since 2010.
For the present, Marchionne stated, FCA and the more extensive industry needs to delay rolling out any production changes in Mexico.
“It puts everything back on the back burner for the time being, Marchionne said. “I need clarity … we’re not the only ones who need clarity.”