Detroit auto industry leaders are expressing concerns over President Donald Trump’s recent comments about being open to Chinese automakers building vehicles in the U.S., though the carmakers themselves are treading lightly around the remarks.
The details: When asked by the Detroit Free Press about their thoughts, UAW President Shawn Fain called Trump’s comments “a slap in the face to America,” while the Detroit 3 deferred to the American Automotive Policy Council, a trade association representing the automakers.
"We shouldn't be doing business with countries that basically want slave labor," said Fain, calling allowing China to build cars in the U.S. a national security issue.
"Allowing Chinese manufacturers to sell foreign-made vehicles here or build cars in the U.S… would harm American Automakers, their employees, their communities, and the competitiveness of the domestic auto industry," said the American Automotive Policy Council.
Why it matters: Chinese automakers entering the U.S. market through domestic production could introduce new competition for Detroit automakers and their dealer networks, potentially reshaping the brands, products, and pricing dynamics retailers compete against.
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Between the lines: The Detroit 3 find themselves in a complicated position when it comes to Chinese automakers: While key U.S. industry officials oppose the companies entering the domestic market, Detroit automakers continue to see partnerships with Chinese carmakers abroad as beneficial to remaining competitive.
GM announced in August that it had extended its joint venture with China’s SAIC Motor by 20 years, to 2047.
In May, Stellantis and Dongfeng Group agreed to expand their 34-year partnership through shared production of Peugeot and Jeep vehicles in China for the Chinese market and sales worldwide.
Ford recently announced a new joint venture with Chinese automaker Geely in Spain, amid criticism from some U.S. officials and lawmakers.
Bottom line: The Detroit 3 are navigating an increasingly complicated relationship with China, with the Trump administration’s and U.S. policymakers’ approach to Chinese automakers potentially reshaping the competitive landscape for dealers at home even as manufacturers continue relying on Chinese partnerships abroad.
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