Jan 9, 2017

Automakers Pledge Investments At Detroit Auto Show

Big news from Detroit’s Auto Show—auto manufacturers announced major investments in America’s auto industry.

Fiat Chrysler Automobiles announced it plans to invest $1 billion in US modernizing 2 plants in the US Midwest.It expects this will create 2,000 new jobs.

Chrysler also says it may relocate a Ram track factory from Mexico to Michigan.

Chryslers CEO Sergio Marchionne says this has “been in the works for a long period of time”, implying it had nothing to do with President Elect Donald Trump’s recent shadow-casting over the automobile industry. Nor to do with Trump’s prospective tariff on imports from Mexico.

However, he admits that their Mexican factories would not be economical, were it not for the US market.

If the US market were not to be there, the reasons for [Mexican factories] are on the line.

This comes on the heels of Ford’s announcement of a $700 million upgrade in its Flat Rock, Michigan assembly plant and an additional $700 million for its Louisville, Kentucky plant.

Other Automakers Stepping Up

German automaker Daimler AG, known for its Mercedes-Benz brand, said on Sunday that they planned to invest $1.3 billion in their Alabama SUV plant, according to CEO Dieter Zetsche. Toyota Motor Corp’s CEO Jim Lentz announced plans to invest $10 billion in the US over the next 5 years, and an additional $10 billion over the next 5 years—that’s $20 billion dollars in new investment. Honda announced it will be making its new hybrid vehicle in America, although hasn’t released financial details. Honda also plans to invest in its Georgia transmission plan. Again, no firm numbers.

This is becoming a pattern—perhaps the cycle of offshoring that’s cost America 10 million jobs is finally breaking.