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Chevrolet Silverado is one of America’s most famous pick-up trucks since it was launched almost three decades ago. But the iconic car can now be one of the largest victims of Donald Trump’s Trade War.
The high-marin general motors model, worth a nearly $ 40,000- $ 70,000, depends on one of the most complex, international vehicle supplies, which makes it more vulnerable In the US president’s threat to impose 25 percent tariffs in Canada and Mexico.
In 673,000 silveraads held last year, 31 percent were built in the GM factory at the Mexico City of Silies and 20 percent of its plant in Oshawa, Canada.
But even for almost half made in the three US plants in Michigan and Indiana, it is likely that the Power painting panels were built in Mexico; the rear light in Canada; The Airbag module in Germany; and the central stack display in Japan, according to S & P Global Mudiility movement data.
GM prepares tariffs since Trump’s Election, Chief Financial Officer Paul Jacobson told a conference of investor last month.
The carmaker moved some production and decreased the inventory of plants outside the US for about a third “because the last thing you wanted was a set of inventory…
If tariffs can be permanent, he says, the company should think about if the plants move. But in the present uncertainty, GM can’t spend billions “whicesawing the business back and forth”.
Data assembled by the Genius of the export shows that the key components of the silveraads depend on the parts imported from Mexico. The exports of parts of the country for the vehicle amount approximately $ 30bn last year, with brake systems alone in $ 4.3bn.
Trumpet guards Mexican and Canada tariffs in the early February, then announced 30-day hours before they have to continue forward from March 4. The ruins are developed by things imported from EU and other worlds.
The great fear within the industry that Trump would impose the blanket tariffs with no mechanisms usually get their effect when the Lefy Cruiges also expands when traveling trips later.
“This is not a trade action. It Border security Speech, “said Dan head, the American leader of the unconstantic and the strip of sewer and canadian tariffs and drugs.” This is a big hammer so that is the challenge. “
Mike Wall, Executive Director of Automotive Analysis of S & P Global Mobility, said companies “A deep dive” in supply points. “If they can and wherever they can, they will try to move some of that sourcing,” he added.
But a shift in making from Mexico to the US will take time and expensive, while the higher work price will raise production costs.
Ford Chief Edekutive Jim Farley warned that the “billions of dollars in industry profits” can be erased if there are ruined tariffs in imports from Mexico and Canada.
John Eldann, Chair of Chrysler owner of Steellantis, this week calls Trump to prevent items from Mexico and Canada Tariff-Free. However, he encouraged the US to close his description that a “loophole now allowed 4mn vehicles in Japan and South Korea.
Willebaldo Gómez Zuppa, an economics professor at the National Autonomous University of Mexico and a Researcher at the Country’s Center for Labor Research and Trade Union Consulting, said Tariffs would raise the price of Vehicles Such as the Silverado – and have even exacerbate the problem of immigration.
Many paid crop workers in GM get $ 5.50 an hour, Gómez Zuppa said. The company quotes the threat of tariffs in the last month if he rebuked a proposal from the Labor Union to raise the bribe.
The tariffs “change the course of participation that three countries have previously been since 1994”, he said.
GM, Ford and Stellantis act in their Mexican factories from which significant migration, he added.
“In case these companies are closed, and they continue, it will affect the entire market work in the region, and we have predicted that migration from that region develops,” he said.