FIRST AIRED: January 18, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:01
>> Center stage at the world's most important auto show in Detroit this week isn't a flashy car or the latest monster truck. It's NAFTA, the North American Free Trade Agreement which is under siege by President Trump. Automakers are especially vulnerable as they have factories and parts suppliers spread across the U.S., Canada, and Mexico.
00:00:21
And some of them are starting to hedge their bets, says Reuters' correspondent, David Shepardson.>> Without NAFTA, trucks imported into the United States are subject to a 25% tariff. Just last week, Fiat Chrysler announced that it was shifting production of its heavy duty trucks. What one's behind me, to Michigan by 2020, investing a billion dollars in Michigan, and adding 2,500 jobs.
00:00:47
>> Trucks are a big deal in the US, America's luxury vehicle of choice with strong sales. And the big unveils here in Detroit make it clear trucks are a priority.>> There's no question that the Trump administration's pressure has had an impact. And one of the reasons that you can argue that Toyota Mazda decided to build a plant here is because it felt the pressure.
00:01:08
>> Last week, the two Japanese car makers said they will build a $1.6 billion joint assembly plant in Alabama, employing up to 4,000 workers. But it's not just the fear of losing NAFTA, the recent Republican tax bill is also helping to lure factories back.>> Fiat Chrysler said that the tax cut will be worth a billion dollars to FCA in the U.S. alone in 2018.
00:01:34
It is giving them an economic incentive to build here. So between the pressure on NAFTA, the tax cut, I think the Trump administration does deserve part of the credit for the shift of some production jobs to the US.>> And industry executives tell Reuters we can expect more announcements of factories moving to the US as auto makers work to cope with an uncertain future.
00:01:56
But it's unclear if those moves will be enough to appease those in Washington trying to scrap NAFTA.