Trump Takes Credit for Billion Dollar Fiat-Chrysler Jobs Announcement. Fiat-Chrysler Begs to Differ...
Fiat-Chrysler (FCA)said on Sunday that it plans to invest $1 billion in manufacturing plants in Michigan and Ohio, which the automaker said will create 2,000 jobs for American workers.
Full story: Fiat Chrysler to invest $1 billion in Michigan and Ohio plants, create 2000 American jobs https://t.co/OkuWt5AhlA
— CNBC Now (@CNBCnow) January 8, 2017
President-elect Donald Trump trumpeted FCA's announcement, appearing to suggest that his election just might've had something to do with both announcements:
Thing is, according to Townhall, the deal was already in the works over a year ago.
The move “is a continuation of the efforts already underway to increase production capacity in the U.S.on trucks and SUVs to match demand,” the company said, adding that it would help solidify the U.S. as “a global manufacturing hub.”
During a roundtable discussion at the Detroit Auto Show on Monday, FCA CEO Sergio Marchionne said that the auto industry must adapt to Trump, as reported by US News & World Report.
“This is new territory for most of us. None of us have had a tweeting president before.”
Regardless of when Fiat-Chrysler's decision-making process began, the announcement presents a double-edged sword for the incoming president.
While the job announcements from FCA, Ford, and the Carrier Corporation make good press and serve to boost Trump's campaign promise to “keep jobs in America,” so-called “one-off” deals and tax concessions to individual companies aren't the long-term answer to America's manufacturing woes.
Restructuring corporate tax rates — America has the third highest in the world, according to a report from the Tax Foundation, and eliminating excessive regulation of industry, which Americans for Tax Reform estimates cost U.S. companies $2 trillion, annually, are.
Then again, as the FCA CEO said, America's never had a tweeting president.