Volvo views Trump's import tax with suspicion

Since Donald Trump has reached the Ovál Office chair in the White House, half the world has been wondering what his next occurrence will be. The American automobile industry is used to that treat him with a certain protectionism Well, by staying true to its traditions, it has had a hard time more than once. To help his models sell more, he has decided that impose taxes on imported vehicles and it will punish the brands that decide to manufacture outside the country.

This situation is very unfair, because in a free market economy one should not intervene rather than to correct irregularities created by the system itself. However, Trump does not see it that way and believes that he can be God playing with all the buttons on his high chair. That is why there are foreign firms, such as Volvo, that they have a good market in the country and that are suffering from the possible implementation of these taxes.

According to Lex Kerssemakers, head of Volvo's operations in North America, your firm will suffer greatly if this tax is finally activated by the Trump administration. according to his words “it is very bad business for us unless we transfer that extra price increase towards the final sale price” [...] «The customer is the loser. Everyone is a loser".

To avoid this situation Kerssemakers has confirmed that are working very hard so that the factory that they have projected in South Carolina open its doors before the year 2019. In it they will manufacture exclusively for the world the new generation of its S60 as well as some more models (which have not yet been confirmed). According to his statements «this is the only place in the world where we are going to build the S60« [...] "People are moving to SUVs, but the sedan market is still the third or fourth largest segment in the United States".

It will be necessary to see if in the period of time until the opening of its American plant, the Trump government does not activate the tax and Volvo's results are not affected.

Source – Volvo