The automaker is ramping adult prolongation of a Tiguan SUV in Mexico, a preference a association done dual years ago. This year, it skeleton to make 130,000 new SUVs out of a Puebla trickery in Mexico.
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Last week, Trump threatened to slap a “big limit tax” on Toyota and GM for producing cars in Mexico and offered them in America. He also applauded Ford for canceling skeleton for a new plant in Mexico and instead deposit and sinecure in after Trump had lambasted Ford during his campaign.
Volkswagen leaders in Mexico aren’t blinking yet.
“We have to wait and see,” says Thomas Karig, VW’s executive of corporate relations. “When we have some-more accurate proposals on a list [from Trump], afterwards we can speak about a impact.”
Related: Trump threatens GM to Make in U.S. or compensate tax
It’s a large bet: This pierce aims to expostulate down a cost tab of a Tiguan in a United States, where a SUV marketplace is booming. Volkswagen launched a new Tiguan on Monday during a Detroit Auto Show.
This Volkswagen bureau produces cars for other tools of a world, though exports roughly half of a cars to a United States. Opened in 1967, a sprawling 740-acre plant in a state of Puebla has grown into VW’s largest outward of Germany. The bureau also produces others cars, including a Golf, a Beetle (which are now done exclusively in Mexico) and a Jetta.
Karig talks proudly about a high turn of automation during a plant, where state of a art record attaches a vehicle’s physique and chassis. This bureau alone employs 14,000 workers, or a immeasurable infancy of a company’s 14,600 employees in Mexico. By comparison, Volkswagen employs 7,000 in a United States.
An estimated 40,000 some-more people work for VW’s suppliers, creation a bureau a powerhouse for a internal economy.
Related: Ford cancels Mexico plant. Will emanate 700 U.S. jobs instead
In a circuitously city of Cuautlancingo, Trump’s threats resonate. Besides tariffs, a president-elect has threatened to make Mexico compensate for a wall on a limit and to repel from NAFTA, a giveaway trade understanding between a U.S., Mexico and Canada. Residents aren’t fearful of vocalization out about how they feel about Trump.
“He’s a male who is conceited and racist,” says Francisco Sanchez, who worked in a bureau for 28 years before recently retiring.
Workers during a bureau are disturbed too. Daniel, who requested his final name not be published, has worked for VW for 18 years.
Related: GM, Chrysler have some-more workers in Mexico than Ford
“There’s doubt and fear,” he says, on his approach out of a bureau during a finish of his shift. “But we will have to wait and see what he does.”
Anybody who follows a Mexican automobile prolongation business knows that there’s most to fear from Trump’s threats. Bill Rinna, comparison manager during researcher LMC Automotive, worries about a hazard of 35% tariffs.
“It is flattering transparent now that all automakers with investments designed for Mexico are on watch,” says Rinna, comparison manager of North American Forecasts during LMC Automotive.
Amid all a uncertainty, Volkswagen is dire on with no skeleton to change jobs or prolongation to a United States.
Karig emphasized that it’s business as common and that Trump hasn’t triggered any changes during Volkswagen.
“No.” he says firmly. “Nothing.”
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