The surprise victory by Donald Trump in this months US election has left many industries worldwide concerned about the impact some of his policies could have on future international trade.
The auto industry is no different.
During the campaign, Trump continued to draw attention to the future of the automotive industry in the US. Statements made by Trump took aim at foreign manufacturing, particularly that taking place in Mexico.
Concerns have been raised within the industry, with many auto manufacturers and experts citing Trump's decision to abolish the North American Free Trade Agreement (NAFTA) agreement as the real issue.
The agreement has allowed companies such as Ford, to cut costs by moving small car manufacturing offshore.
Ford remained a main target of the president-elect, with Trump criticising the company's outsourcing of jobs and manufacturing south of the border, citing the impact it would have on the industries local job market.
Trump was noted for stating during the first debate that, “NAFTA is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country.” He has also proposed high taxes be imposed on imported vehicles.
This proposed tariffs could see the auto industries profits decline rapidly, with many manufacturers following suit with Ford and setting up shop in Mexico.
In a statement appearing in Automotive News, Ford chief officer Mark Fields has maintained its plans to go ahead with the off-shoring and remains critical of Trumps proposed tariff's commenting, “A tariff like that would be imposed on the entire auto sector, and that could have a huge impact on the U.S. Economy.”
However, The Wall Street Journal reported over the weekend that while Ford holds strong on off-shore manufacturing, it will halt plans to move the Lincoln SVU factory south of the border.