US president Donald Trump has reiterated that he is open to Chinese and other foreign manufacturers building cars in the country – and he has even told Ford’s boss that he wants kei cars to be sold in America.
Trump made his comments on a trip to Michigan, where he toured the plant in which Ford manufactures the F-150 pick-up – America’s best-selling vehicle – and delivered a speech at the Detroit Economic Club.
The US government has imposed heavy tariffs on foreign cars being imported into the US, including a 100% rate on vehicles made in China that has effectively shut out Chinese firms from the market. But he has repeatedly said he is open to foreign manufacturers building factories in the US.
“Let China come in. Let Japan come in,” said Trump during his speech. “They are and they’ll be building plants, and using our labour."
Later, speaking during his tour of the Ford plant, Trump reportedly said that having cars built in the US was his top priority, adding: “We want cars built here. They [US car firms] are all doing great. The car industry is exciting. Every industry is exciting.”
Ford has recently expanded F-150 production at its Michigan plant and Trump said that was “because of tariffs” he had introduced. He also said his decision to roll back many environmental targets in the country has boosted the car industry, insisting “the environmentalists would not let them survive”.
Speaking to media ahead of the Detroit Auto Show, Ford boss Jim Farley said Trump’s visit was because “the president really wanted to see for himself the effect of his policies on the most important automotive plant in the United States”.
Farley added that the F-150 is “second to the iPhone in total revenues for a consumer product globally, but we make all of ours in the US”, which, he said, made the F-150 factory and its sibling plant “the two most important American revenues plants in the country”.
Ford has recently added 1200 jobs by expanding production at the two lines and Farley said Trump “wanted to see those 1200 new jobs, he wanted to meet the factory workers themselves, and he wanted to learn about how these jobs change people's lives”.
Farley was subsequently asked by Japanese media if the F-150 could ever be exported to Japan. While he dismissed that notion, he revealed Trump has asked him about the prospects of small Japanese-market kei cars – which are limited in size and power output – being offered in the US.
“The president today asked: ‘Can we sell kei cars in the US?’” said Farley. “That’s exciting and fun to talk about those possibilities.”
Asked how Farley responded to that kei car request, the Ford CEO highlighted his time at Toyota’s now-defunct Scion brand, a youth-focused marque that offered a range of small cars. “At Scion I brought xB [a compact hatchback] to the country. I love that little car. We’ll continue to look at the market: affordability is a priority for us, but frankly a small minivan for six people in the US, I’m not sure that’s going to be a high taker.”
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