What the auto industry, experts are saying about a future under Trump

Donald Trump’s win over Hillary Clinton will have implications for the automotive industry and for consumers. NAFTA renegotiations, a tariff on vehicles from Mexico and a pullback on fuel economy and emissions standards are a few of Trump’s talking points that could affect the industry greatly.

Here’s how some key players and experts in the auto industry reacted to the election results.

“We have been looking at scenario planning. The view for us is that we’re a large-scale business, we have significant capital investments we have made into the plants. It’s important to note that we produce for the global stage, not only for North America. We’re able to divert a lot of Mexican production to serve other global markets that require our vehicles. I think that we will be able to accommodate whatever new developments lie in store.

“We think that the world is a global village, based on trade and I think that we need to ensure that we’re able to maintain economies of scale that are necessary to ultimately serve consumers.”

-- Johan de Nysschen, Cadillac president

"I hope the election result won't have more negative consequences for Volkswagen. I think we’re at a point where a 'consent decree' could be reached, but that's the Department of Justice's decision, not mine."

-- Matthias Mueller, CEO of Volkswagen Group

“Ferrari may be the lowest risk business (in both cyclical and secular terms) of any company under our NA coverage … Ferrari’s business composition leaves it very shielded to a variety of market and industry risks. Waitlists are designed to be long, suggesting its products are designed to have demand significantly exceed supply.

“On the secular side, the now widespread consideration of forthcoming autonomous cars has elevated risk to those involved in producing cars as a means of transportation. In our view, a Ferrari is not transportation. Ownership is an exclusive club and membership requires more than just money. In a world where pleasurable human driving experiences on an open road become increasingly scarce, the value of this club’s membership may indeed appreciate.”

-- Morgan Stanley

“The Trump Administration will complete a comprehensive review of all federal regulations. This includes a review of the fuel economy and emissions standards to make sure they are not harming consumers or American workers.

“It is important to remember that this particular program was first put in place as a way to reduce our nation’s dependence on foreign oil, not for purposes of global warming regulation. Mr. Trump will be focused on bringing jobs, including auto manufacturing, back to the U.S., and making sure that government policies are in the national interest.”

-- John Mashburn, a senior policy adviser for Trump

“AAPC companies export over one million vehicles per year to more than 100 different markets around the world. This has helped AAPC companies add more than 30,000 American jobs in just the last two years. As the country’s new policymakers formulate their economic and trade priorities for the coming years, AAPC believes that the continued growth of our domestic automakers, and the hundreds of thousands of American workers they support, should be a key consideration.”

-- Matt Blunt, president of the American Automotive Policy Council

“Canada and the U.S. could revert to a bilateral free trade arrangement that excludes Mexico. That might help Canada reap market share stateside, but there are also risks that protectionist sentiments could extend to restrictions on some Canadian shipments to the U.S., given the political tide in that direction.”

-- Avery Shenfeld and Royce Mendes, economists for the Canadian Imperial Bank of Commerce

“Over the medium and longer terms, Trump’s stated or understood policy objectives will produce significant positive tailwinds, particularly as they direct us to lower corporate taxes, increased infrastructure spending, and reduced regulation across all aspects of business. The negatives are, of course, an assault on free trade and immigration.

“So where does this leave car sales? Still slowing in response to the U.S. market maturing – but not as a result of the election. In fact, in the medium and long term, if increased infrastructure spending happens and certain tax cuts materialize, it will mean a better long-term outlook than what’s in front of us at present.”

-- Steven Szakaly, chief economist of the National Automobile Dealers Association