Jamell Harris invites Raw Casting Heads, which will be produced on August 18, 2022 in Dundee, Michigan, in the Stellantis Dundee Motor Complex.
Bill Pugliano | Getty pictures
Detroit -Six of the top political groups that represent the US automotive industry are unusual together to set the Trump administration against 25% tariffs for auto parts that are supposed to come into force until May 3.
The group, the franchise retailers, suppliers and almost all major car manufacturers represents -says in a letter to the Trump administration officials that the upcoming taxes could endanger the US automotive production. The letter notes that many auto providers are already “in need” and that the additional cost increases cannot afford, which leads to wider industrial problems.
“Most auto providers are not triggered for an abrupt tariff that has a disturbing disorder. Many are already in trouble and will face products, layoffs and bankruptcy,” the letter says. “It only takes a supplier to fail to manufacture the production line of a car manufacturer. If this happens, like during pandemic, all suppliers are affected and the employees will lose their work.”
The letter dated April 21 will be addressed to the US Finance Minister Scott Bessent, the US trade Ministry Howard Lutnick and the US sales representative Jamieson Greer.
It is signed by the head of the Alliance for Automotive Innovation, the American International Automobile Dealers Association, Autos Drive America, the Mema of Vehicle suppliers, the National Automobile Dealers Association and the American Automotive Policy Council.
The common letter is uncharacteristic for the automotive industry, if not unprecedented. Such organizations rarely register, if at all, with a single common message.
The groups say that they represent the processing of the country that supports 10 million American jobs in all 50 states and pumps 1.2 trillion dollars into business every year.
The car manufacturers not represented by the groups include electric vehicle manufacturers TeslaPresent Rivian Automotive And Clear group.
“President Trump has given an openness to check the 25 percent tariffs of the administration for imported automotive parts -similar to the recently approved tariff easier for consumer electronics and semiconductors. That would be a positive development and a welcome relief,” says the letter.
The letter takes place for a week after President Donald Trump said that he could “help” some car companies that need more time to move or increase the production of US vehicles.
“I am looking for something that helps some of the automotive companies in which they change that were produced in Canada, Mexico and other places, and they need a little time because they will do them here,” said Trump on April 14th. “But you need a little time, so I talk about things like that.”
Drivers and experts have announced that CNBC Trump's tariffs for car suppliers are worse than the car manufacturers themselves. The effects could have a wavy effect through the global supply chain.
Car officials expect a decline in vehicle sales of millions of units, higher new and used vehicle prices and increased costs of more than 100 billion US dollars in the entire industry, according to Wall Street and Automotive analysts.
“We support more production and additional supply chains that run through the United States, but it is not possible to redirect global supply chains overnight or even in months. This will take time,” the letter says.
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