Trump Tariffs Threaten Fiat Chrysler’s Mexico Plants — FT

He said that the current uncertainty would make it “incredibly imprudent” for Chrysler to invest any more in Mexico at this time.

Apart from upgrading its rating on Fiat Chrysler, Goldman Sachs also lifted its 12-month price target from $10.60 to $17.50.

Fiat Chrysler Automobiles NV (NYSE:FCAU) will create 2,000 jobs in the US with a new $1 billion investment plan.

Fiat Chrysler says it’s investing $1 billion in its USA factories to create 2,000 new jobs and add three new Jeep vehicles including a pickup truck.

Trump tweeted about the move, saying “It’s finally happening”.

But as more test vehicles hit the road later this year, Mr. Marchionne said it will become increasingly hard to keep the auto cloaked.

Sergio Marchionne says Fiat Chrysler and other automakers need “clarity” not only in regards to Mexican investments, but on auto regulations as well. In a 2015 labor deal with the United Auto Workers union, the company had committed to invest $5.3 billion in American plants to guarantee additional union jobs.

“We see some chances that Trump’s unconventional approach would favor a national champion”, Vecchio said. “But the thinking was in place beforehand”.

As for as concerns shares volumes, in share of capital Fiat Chrysler Automobiles N.V. (NYSE:FCAU) has 1289.08 million outstanding shares among them 891.22 million shares have been floated in market exchange. Now, we have some more. He doesn’t even have a Twitter account. No photos or renderings have been made public, in part because the company doesn’t want to hurt sales of the existing Wrangler by pumping up the new model too much. Trump has threatened to scrap the Northa American Free Trade Agreement (Nafta) between the US, Mexico and Canada, but so far the most detail he has given has been on Twitter.

He has just as explicitly warned that he will move to raise the costs of importing vehicles from Mexico, a policy industry executives said could hurt their businesses. However, he added that it was “quite possible” that heavy tariffs on Mexican imports could force the company to close Mexican plants.

And GM CEO Mary Barra said Sunday that the company won’t change any of its plans over Trump’s tweets as decisions have been made years in advance. The Canadian plant will still make the Equinox SUV. At the media preview of the Detroit auto show, Waymo exhibited its autonomous version of Chrysler’s Pacifica minivan.

The FCA CEO said his company and the rest of the auto industry is struggling to understand evolving USA trade policy under the incoming administration, in particular Mr. Trump’s calls for tariffs on imported goods from Mexico. But they wouldn’t close immediately. “For us it would be impossible”, he said.