Top executives from the Detroit 3 automakers met with Vice President Mike Pence on Monday amid tension over the Trump administration’s efforts to revamp the North American Free Trade Agreement.
This story from Bloomberg appeared in Automotive News.
Fiat Chrysler Automobiles CEO Sergio Marchionne, General Motors CEO Mary Barra and Joe Hinrichs, Ford Motor Co.’s president of global operations, discussed “trade, commerce and manufacturing policy and how it impacts their business.” The meeting also included National Economic Council Director Gary Cohn and U.S. Trade Representative Robert Lighthizer, the vice president’s office said.
Automakers have plenty of issues to raise.
President Donald Trump has pushed for companies to construct more auto assembly plants in the U.S., while also pushing for major changes to NAFTA. Trump’s negotiators want to increase the share of U.S. parts required for vehicles assembled in North America to receive duty-free treatment under NAFTA, a change that the auto industry has warned could undercut Trump’s America First goals.
Mexico and Canada rejected the U.S. proposal to raise the minimum threshold for autos to 85 percent North American content from 62.5 percent as well as to require half of vehicle content to be from the U.S.
Meanwhile, the administration is conducting a review of environmental regulations enacted during the Obama administration that aim to boost the fuel efficiency of the average new car to more than 50 mpg by 2025. Carmakers say the rules are too aggressive and asked the Trump administration to reopen a review of the regulations.
