Image: Bloomberg

According to Carscoop, Donald Trump made comments about the future of the American automotive industry during his election campaign.

The Republican presidential candidate proposed tax incentives, urging manufacturers to build factories in the US, while threatening heavy tariffs if companies chose to import from neighboring plants.

In his most recent speech in Savannah, Georgia, Trump focused on tax cuts for businesses that agreed to build factories and produce goods in the US. Specifically, the current 21% tax rate could be reduced to 15%.

“I want German car companies to build factories in the US, becoming American-origin companies,” Trump declared.

Trump also offered incentives beyond tax rates to convince companies to speed up the process of building factories in the US.

“I will bring tax, production costs, and legal burdens down to a minimum so that companies and car manufacturers can freely access the US market,” Trump added.

BMW X5. Image: BMW.

Of course, these favors would only be granted if manufacturers agreed to build factories in the US and hire local workers.

Previously, according to ABC News, Trump had “threatened” to impose a 100% tax on all cars imported from Mexico. The reason for this was that manufacturers often chose to build factories in Mexico, taking advantage of the country’s cheap labor, and then exporting the cars to the US.

Currently, some German car companies have already started manufacturing cars in the US, including BMW, Mercedes-Benz, and Volkswagen. The production capacity of these factories is enough for these companies to not only sell domestically but also export to neighboring markets.

For example, BMW has been the brand with the highest car production volume in the US thanks to its factory in Spartanburg. The export value of BMW cars from the US reached approximately 10.1 billion USD last year.

Notably, Trump also extended this preferential treatment to Chinese car manufacturers, who were once considered “enemies” by the former president.

“We welcome and encourage Chinese car companies to come to the US to sell cars, but they must build factories here and hire local workers,” Trump affirmed.

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