Trump to GM: Make the Cruze in U.S. or Pay Big Border Tax

The transcript discusses the implications of President-elect Trump's tweet about imposing hefty tariffs on cars manufactured outside the US, specifically targeting GM's Chevy Cruze models made in Mexico. It highlights GM's response, noting that most Cruze models sold in the US are made domestically, while the Mexican-made hatchbacks are primarily for overseas markets. The discussion extends to the broader impact on the auto industry, with many automakers investing in Mexico due to favorable conditions. The potential for Trump to offer incentives, similar to those given to Carrier Corporation, is also explored, though no specific policies have been announced yet.

What is the main difference between the Chevy Cruze models made in Ohio and Mexico?

• Both models are hatchbacks but made in different countries.

• The Ohio model is a hatchback, and the Mexico model is a sedan.

• Both models are sedans but made in different countries.

• The Ohio model is a sedan, and the Mexico model is a hatchback.

What action did the President Elect take against Ford?

• He offered Ford a tax incentive to build in the US.

• He persuaded Ford to keep a small volume vehicle in Kentucky.

• He convinced Ford to move a factory to Mexico.

• He imposed a tariff on all Ford vehicles.

Why are automakers investing heavily in Mexico?

• Because of high wages and strict trade deals.

• Due to low wages and favorable trade agreements.

• To avoid tariffs imposed by the US government.

• To cater to the growing US market for hatchbacks.

What is the potential tariff mentioned by the President Elect?

• A 15% tariff on all imported vehicles.

• A 50% tariff on all foreign-made cars.

• A 25% tariff on vehicles made in Mexico.

• A 35% tariff on vehicles not made in the USA.

What incentive did Carrier Corporation receive to keep jobs in Indiana?

• A $10 million tax credit.

• A $7 million tax credit.

• A $3 million tax credit.

• A $5 million tax credit.