GM CEO stands firm on production

    Editor’s Note: The headline for this story has been updated since its original publication to clarify statements by GM’s CEO Mary Barra. 

    General Motors CEO Mary Barra emphasized this morning that the automaker will continue “to build where we sell” a week after President-elect Donald Trump threatened to impose a stiff tariff on the Chevrolet Cruzes that GM imports to the U.S. from Mexico, USA Today reports.

    “We have more than 40 manufacturing facilities in the U.S. and over the last two years alone we have investment more than $11 billion creating thousands of new jobs in the U.S., as well as recruiting technical talent,” Barra said this morning after Chevrolet unveiled the 2018 Chevrolet Traverse at the Detroit auto show.

    Trade experts have said that it would be highly unusual for Trump to impose a tariff on a single company, as he threatened to do last week with GM and Toyota. It is specifically barred under the North American Free Trade Agreement.

    He could ignore the trade agreement, but it would set a precedent, according to trade experts. Punishing GM with a tariff on its Mexican-made cars—or any other U.S. company that has shifted production there—could prompt a Mexican response that would hurt U.S. exports and raise the price of all goods from the country.

    USA Today has the full story. 

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