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Trump: “I Want German Car Companies To Become American Car Companies”

The Republican presidential candidate announced an aggressive strategy to boost automotive production on U.S. soil.

 Trump: “I Want German Car Companies To Become American Car Companies”

  • Donald Trump will offer incentives to foreign automakers that build cars in the U.S.
  • The presidential candidate promised the lowest tax rates, energy costs, and regulatory burdens.
  • Conversely, Trump plans to impose 100% tariffs on vehicles imported from Mexico.

Donald Trump is revving up the conversation around the future of the automotive industry in the U.S. with some bold promises. The Republican presidential candidate is proposing tax benefits for foreign automakers willing to manufacture their vehicles on American soil, all while threatening hefty tariffs on those that dare to import their cars.

During a speech in Savannah, Georgia, on Tuesday, which was heavily focused around slashing the corporate tax rate from 21% to 15% for “those who make their product in the USA,” Trump declared, “I want German car companies to become American car companies. I want them to build their plants here.”

More: Trump May Scrap $7,500 EV Credit, But Is Open To Chinese Brands Building Cars Locally

The former president laid out his offer for every major foreign automaker if he finds himself back in the Oval Office:

“Here is the deal that I will be offering to every major company and manufacturer on Earth — I will give you the lowest taxes, the lowest energy costs, the lowest regulatory burden. And free access to the best and biggest market on the planet,” Trump said.

“But only if you make your product here in America. It all goes away if you don’t make your product here. And hire American workers for the job. If you don’t make your product here, then you will have to pay a tariff, a very substantial tariff,” he added.

Consequences for non-compliance

According to Trump, those who fail to comply will have to pay hefty tariffs, effectively driving up the cost of their products. As ABC News reports, he also threatened to put a 100 percent tariff on “every car imported from Mexico“. Such a move would affect several companies that have built factories in Mexico, taking advantage of the lower labor costs in America’s backdoor.

Trump argues that under his leadership, not only will American jobs remain stateside, but “we’re going to take other countries’ jobs.” He added, “We’re going to take their factories. We’re going to bring thousands and thousands of businesses and trillions of dollars in wealth back to the good old USA.”

The reality for German automakers

Currently, BMW, Mercedes, and Volkswagen are already producing a significant number of models in the U.S. at their expansive facilities. Many of these vehicles are not only intended for the North American market but also destined for export.

Take BMW Manufacturing, for example. The plant in Spartanburg produces nearly its entire SUV lineup and employs 11,000 people. For several consecutive years, it has held the title of the largest automotive exporter in the United States by value, with approximately $10.1 billion in exports in 2023.

However, analysts caution that if these German titans ramp up production here, they may need to cut back on output from their plants in Germany, which could in turn affect overall efficiency.

Calling Chinese carmakers to build in the US

Interestingly, the former president also expressed a willingness to welcome Chinese automakers into the U.S. market—on one condition: they build their vehicles locally. “We’re going to give incentives, and if China and other countries want to come here and sell the cars, they’re going to build plants here, and they’re going to hire our workers.”

 Trump: “I Want German Car Companies To Become American Car Companies”

The fully electric VW ID.4 is assembled in Chattanooga, Tennessee.

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