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Volkswagen says it will boost US production by working with Ford after meeting the White House

December 5, 2018 Business 3 Views Image: AP Images Following a meeting with President Trump on Tuesday, Volkswagen CEO Herbert…

Image: AP Images

Following a meeting with President Trump on Tuesday, Volkswagen CEO Herbert Diess gave a public review of the company’s potential opportunities to increase US-based automotive production. Head of today’s call, Volkswagen’s alliance with Ford Motor Co. and a potential use of the American Blue Oval factories to build cars.

Volkswagen and Ford announced a strategic alliance back in June. It has been slow, but both manufacturers were optimistic when the conversation continued in October. Although nothing is still in stone yet, both German and American manufacturers expect to make progress on the deal in January. From now on, it does not seem that any company would take a stake in the other.

Diess also noted that the company “considered building a second car factory” in the US market. This would be in addition to the company’s Chattanooga, TN facility that produces Passat and Atlas models. Given that GM closes some of its automotive production facilities, VW may be able to get into one of those who netted some serious good test points with the local workforce.

The third option would be an increase in the car production capacity of the company’s existing Tennessee factory. This would prevent Volkswagen from having to negotiate with United Auto Workers. Was Volkswagen to produce cars in a Ford facility, a shuttered GM plant or a potential future VW facility, collective bargaining would really be part of the discussion. Until now, workers have not been able to trade unions at VW’s sole stateide facility.

Trump wants to put America the worst tax on every single car

Ugh.

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] It seems to me that Diess said things that the president could hear, maybe without any actual immediate plan to follow through. When Automotive News reached Bill Ford for comment, he said: “We have not received the granular in our conversations yet, but we’re talking to them clearly.” (19459049). ” By possibly placing Trump with promises of future US jobs, it is likely that Diess hoped to sidestep or change the import duties that the president has tweeted about.

Volkswagen united in Washington at the request of the White House by Daimler AG, CEO Dieter Zetsche and BMW CFO Nicolas Peter. In particular, BMW and Daimler are afraid of replacement taxes on cars and SUVs they are based in the United States, which are often exported to China. VW would in the meantime have a huge win if Trump’s proposal for 25% EU import duty was to be implemented.

Ford Lost $ 1 Billion of Profit Thanks to Trump’s Metal Tariffs: CEO

The metal prices introduced by Donald Trump already hurt car manufacturers like Ford. Ford CEO Jim …

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Trump and his followers are concerned about the trade balance we are experiencing with other nations. I have a serious trade balance with my local supermarket, but that does not mean that my life would be improved by cultivating my own potatoes. Macroeconomics is a tough topic, people.

H / T: Bloomberg

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