GM To Build Blazer In Mexico Despite Trump Anger

It appears the Trump touch - the President's ability to browbeat individual companies into cancelling planned factory closures or expanding production in the US - is beginning to fade. To wit, General Motors on Friday openly defied President Trump, who has criticized automakers for building cars abroad, by revealing that it's going to move ahead with plans to build the new Chevy Blazer SUV in Mexico, according to Reuters.

Trump has been pushing car companies to build more vehicles in the US as negotiations with Mexico and Canada over NAFTA have continued, despite increasing concerns on all sides that a deal to preserve the trade agreement might prove illusive. A spokesperson for GM said the company remains "committed" to working with the administration. "We remain committed to working with the administration on a modernized NAFTA," GM spokesman Pat Morrissey said, adding the decision was made years ago.

Blazer

The new Chevy Blazer

Way back in January 2017, before Trump's swearing-in, the then-president elect instigated a fight with GM, accusing the company of shipping Mexican-made cars into the US tax free, to be sold to US consumers.

In a tersely worded response, GM later explained that all Cruze sedans sold in the US market are built in the US, while Cruze models intended for global markets are manufactured in Mexico. Automakers have opposed the Trump administration's push to renegotiate Nafta (after all, they're the primary beneficiaries from the status quo). If certain of the Trump administration's priorities are enacted - for example, stiffer content rules - these changes could prove immensely disruptive to automakers' supply chains.

Meanwhile, the United Auto Workers Union said GM's decision was "disappointing."

The United Auto Workers union called the decision disappointing. "This is all happening while UAW-GM workers here in the U.S. are laid off and unemployed," the union said in a statement.

Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe.

The company unveiled the revival of the Blazer, which it hasn't made since 2005, during an event in Atlanta on Thursday, CNNMoney reported. The car will go on sale next year.

We now wait to see if President Trump - who has been preoccupied lately with the collapsing push for immigration reform in Congress, a burgeoning trade war with China, and public outrage over his "zero tolerance" migrant detention policy - offers a response on twitter.

Comments

Cautiously Pes… Fri, 06/22/2018 - 09:41 Permalink

Trump spanking Government Motors.  I love it!

 

The company unveiled the revival of the Blazer, which it hasn't made since 2005, during an event in Atlanta on Thursday.....

Well, hells bells....why didn't they just unveil it in Guadalajara or Juarez??

FireBrander Shillinlikeavillan Fri, 06/22/2018 - 09:44 Permalink

public outrage over his "zero tolerance" migrant detention policy

BULLSHIT!

The only people "outraged" were Trumps enemies and the MSM jumped in to make it look like "everyone" was outraged.

Idiot Trump watches too much MSM...he should be polling his base and those crucial "Middle Ground" voters...the people that decide the winner in elections...those folks were not "Outraged"...they supported the policy when the FACTS are known...that the "separation policy" exists to ensure the kids were safe and not being trafficked into the USA to be sold into prostitution for pervert customers like Fonda that fantasize of cage raping children.

In reply to by Shillinlikeavillan

Son of Loki BaBaBouy Fri, 06/22/2018 - 09:53 Permalink

This is exactly why Obama bailed GM out...so GM and Obama could move more jobs out of America and continue his destruction of the middle class.

Obama accomplished more then Bill Clinton:

1) Obama moved more millions of jobs out of America to China and Mexico then Bill; and,

2) Obama killed a million more people worldwide then Bill did in Yugoslavia.

In reply to by BaBaBouy

B-Bond Joe Trader Fri, 06/22/2018 - 09:56 Permalink

Mexican Automakers Boom Because Of Free Trade With The World

Thanks to its free-trade agreements, Mexico has tariff-free access to countries that account for 60% of world GDP, an advantage which dwarfs Mexico’s estimated $600-700 per-car labor cost savings over American production.

The European Union, where many Mexican-assembled cars will be sold, makes this point clear. The EU imposes a 10% import tax on vehicles made in AmericaThat tax goes back at least to the 1963

That 10% tariff on U.S.-produced cars means that a $25,000 Mexican-made Ford or Nissan, unlike an American-made one, is not hit with a $2,500 tax. The difference is far greater than the labor-cost differential.

https://www.forbes.com/sites/realspin/2017/12/08/mexican-automakers-boo…

EU export to US subject to 2.5% import tax

 

In reply to by Joe Trader

zebra77a 847328_3527 Fri, 06/22/2018 - 10:13 Permalink

GM is a GARBAGE VEHICLE. Over priced, stuff constantly engineered to break 2 months after warranty. The fact GM was able to obtain $6 Billion in a subsidy so they could move their plants to Mexico defies incredulous..

Trump's behavior grant you is erratic at best. Today he might be beating companies with a 10% tariff stick, but can grab the 20% tariff stick the day after..  The only constant is ALL offshore companies needing to sell into the United States is going to get knocked around until they move their factories back or find a way to not need US sales.

The bigger question is when does China in a face-saving maneuver do something that provokes Trump into an erratic response leading to a theater exchange.. Both sides keep doubling down, and Kim was called back to China for a reason..

In reply to by 847328_3527

RedBaron616 Joe Trader Fri, 06/22/2018 - 16:03 Permalink

The guts are crap. You couldn't give me a brand-new Blazer if I had to give up my 2005 Honda Accord EX and couldn't sell the Blazer. I am through with American pieces-of-crap vehicles. Before this one, my 2000 Accord ran 283K miles and still sold it for $2400. Keep your Government Motors garbage. Sell it to the Mexicans. They don't know any better.

In reply to by Joe Trader

TrustbutVerify Joe Trader Fri, 06/22/2018 - 19:43 Permalink

Joe,

Its extremely likely that its under powered, as most cars are these days.  Definitely, will have 4-doors especially if its small.  The general intent seems to be to make automobiles as difficult as possible to get in and out of for anyone other than 5'6"ers.  Next fad will be the same size vehicle with six doors.  

Oh, and definitely no manual shift.  The government (or hackers) needs to be able to start it, put it into gear, rev it from a satellite or cell tower - as happened to a cousin's brand new Jeep Cherokee.  

In reply to by Joe Trader

all-priced-in Itdoesntmatter Fri, 06/22/2018 - 11:20 Permalink

Dumb fuck -

 

You must think if GM would have disappeared that no other company would have bought their facilities and used them to make vehicles. That all the people that buy GM vehicles would have just stopped buying new vehicles.

 

Having the weak, stupid, incompetent companies die off is an important part of capitalism.   

 

Keeping them alive with taxpayer money when they deserve to die a painful death hurts things in the long run

 

Same thing with banks^2.

 

 

In reply to by Itdoesntmatter

Offthebeach Itdoesntmatter Fri, 06/22/2018 - 12:21 Permalink

YOU'RE the idiots.  GM ownership would of been , quickly, in the hands of the debt owners.  As was law in this country from the Revolution.  250 years, Guess who broke it.  Further , Ford and Crysler would of been better off.  Lastly, GM deserved to die.  Rebadged Japanese cars, crap boring mid cars, Cady OK, Corvette fine, and woop de do they can drop a body on a truck rail.  

In reply to by Itdoesntmatter

RedBaron616 Itdoesntmatter Fri, 06/22/2018 - 16:06 Permalink

Yes, and he screwed the bondholders who are supposed to ALWAYS be PAID FIRST. But Obama shopped around for a judge that basically threw the lawbooks out and made it up as he went along. If GM had gone down, than Honda and Toyota plants would have expanded.

Screw bailing ANYONE out. Let them fail and put the CEO in jail. Their mismanagement should be a crime for what they get paid.

In reply to by Itdoesntmatter