Usa car

Usa car

Toyota camry: three quarters of the components are made in the USA.Keystone

US president trump wants to have cars built for americans in america. The first US companies are already reacting, while German manufacturers are hesitating. Also because many cars are more american than you think.

The new US president donald trump has put the german carmakers in a state of shock. While the u.s. companies general motors and ford promptly reacted to the demand for an expansion of production in the u.s. and now want to bring parts of the production from mexico back home and create new jobs there, their european competitors are holding back with announcements. They warn against protectionism and do not want to be dissuaded from their course of action. But according to experts, this puts them in danger: "Trump’s threats have been taken seriously by everyone – except the Germans," criticizes auto professor ferdinand dudenhoffer. "ford, GM and also toyota know exactly that trump will introduce tariffs."

If the U.S. president were to seal off the country with trade barriers – and there are many indications that this is the case – German automakers would face major problems, says dudenhoffer. plants in mexico, from which the corporations supply cheaply produced cars to north america, then risk becoming a bad investment. This would be particularly painful for the VW subsidiary audi, which has just opened a plant in san jose chiapa costing more than a billion euros, where the Q5 off-road vehicle rolls off the assembly line. But the factory of sister brand VW in puebla would also be affected, because a large proportion of the cars produced there are exported to the U.S.

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Expanding production in the U.S. "visibly to the outside world

Industry expert stefan bratzel of the center of automotive management in bergisch gladbach assumes that german companies will sooner or later approach the u.s. president to present proposals. It is conceivable that production in the U.S. will be expanded "visibly to the outside world," but that supplier parts will continue to be sourced worldwide, says Bratzel. Trump could then proclaim that he has created jobs in the U.S. and that the companies do not have to cut their value chains.

Dudenhoffer proposes the delivery of kits, i.e. vehicles disassembled into individual parts and assemblies that are only assembled in the importing country. Most of these are not subject to import duties. Much will depend on what trump’s plans actually look like. So far, there has only been a blanket threat of 35 percent punitive tariffs. German carmakers, also used to success in the U.S., want to wait and see what will actually become law from trump’s announcements.

Globally networked

According to experts, manufacturers should signal that they have understood Trump’s message, which is to have cars built for Americans in America. Many managers find this difficult, however, because the real estate billionaire ignores the fact that the automotive industry is globally networked like almost no other industry. Cars are often not produced where they are sold. At the same time, many cars are "American", which the US president does not even have on his list when he complains that there are too many cars from foreign manufacturers on the road in the USA.

The BMW X5 off-road vehicle that rolls off the assembly line in the U.S. is one such example: "It’s an American car, if you will," says Bratzel. The Munich-based company produces several X-series SUV models in South Carolina because SUVs are very popular in the USA. The situation is similar at rival daimler. At the Mercedes plant in the US state of Alabama, the Stuttgart-based company builds the GLE and GLS SUVs and supplies them to customers around the world. There are also C-Class cars rolling off the assembly lines for customers in the U.S.

A japanese is the most american

The most ‘American’ of all U.S. cars is, of all things, Japanese: three-quarters of toyota’s camry mid-size car is made of components from the U.S. This is shown by data from the U.S. National Highway Traffic Safety Administration (NHTSA). For years now, carmakers in the U.S. have been required by the American Automobile Labeling Act to indicate the place of final assembly and the origin of the engine and transmission for new cars. According to the magazine "auto motor und sport," the origin of other supplier parts or the development location are not included in the evaluation.

The jeep wrangler from the italian-american manufacturer fiat-chrysler is 73 percent american, while the ford F-150 pickup, which sells the most in the u.s., is 70 percent american. The Chevrolet silverado, which ranks second on the best-seller list, only has a 38 percent share of the market. The most American among German manufacturers is mercedes’ C-class, at 72 percent, and the GLE, at 65 percent. The VW Passat follows with 30 percent, which rolls off the production line at the U.S. plant in Chattanooga. The U.S. share is comparatively low because important components are supplied there from the VW plant in Mexico.

trump is likely to have his sights set on foreign manufacturers with a lower share of value added in the u.S. when he calls for more production in the country. BMW has already heard the threat.

See how far carmakers have come in developing their autonomous cars in the image gallery below:

This is where the carmakers are with their autonomous cars

Usa car

The race for the autonomous car (in series) is hot. Here’s an overview of major manufacturers and how far along their self-driving car projects are:leads the waybmw plans to offer self-driving cars in series production starting in 2021. The German automaker is cooperating with U.S. chipmakers intel and mobileye on the project. The israeli startup specializes in artificial vision, but also works with other major manufacturers. The chances are good that BMW will be one of the first suppliers to do so.

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Christina Cherry
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