Ford, GM, Toyota Unite to Keep Chinese Carmakers Out of U.S.

The Heat Is On

Chinese cars continue to be banned in the U.S., a measure that remains in place to keep the local automotive industry alive and protect it from the ever-growing presence of Chinese cars. This issue is a hot one, with no shortage of opinions, but right now it seems the U.S. can survive without the Chinese automaker invasion.

However comfortable U.S. automakers are that Chinese brands will be kept out, the U.S. government seems willing to change its mind. To maintain the status quo, a coalition of American and foreign carmakers is urging the President to ensure the ban continues as Washington hosts a summit with a delegation from China that includes its President.

A Threat

In a report by Automotive News, it was detailed how a group of American car brands, suppliers, and dealers are once again coming out and urging President Donald Trump to continue the ban on Chinese cars in the U.S. This renewed plea comes before the President is set to meet with Chinese President Xi Jinping in Washington. According to the report, the delegation set to travel with President Xi Jinping might include prominent business figures, including members of BYD, the biggest carmaker in China.

This information came to light in a letter Bloomberg News saw, in which the coalition said the current barriers that effectively keep Chinese automakers out of America are crucial to maintaining fair competition. This group comprises Ford, GM, Toyota, Volkswagen, and other automotive interest groups like Autos Drive America, the American Automotive Policy Council, and the National Automobile Dealers Association. These groups also said that any sales of Chinese cars pose a security and economic threat to the U.S.

The Politics

In response to the plea, Washington said it is working with American automakers to revive the U.S. automotive industry while safeguarding national and economic security. The renewed panic also follows a slew of statements from President Trump, who in the past few weeks has said he might consider allowing Chinese brands to enter if they build cars with American workers. Earlier this year, he also said that he would love the idea of Chinese automakers building production plants in the U.S.