President Donald Trump says car companies are thriving due to tariffs and other key policies he's instituted as president. During a rally this week at a General Motors facility in Michigan, the Republican drove the point home repeatedly, saying his tariffs had revived domestic auto production. However, tariffs have cost Michigan businesses billions of dollars and fueled inflation. Michigan, in particular, faces economic challenges given its deep ties to Canada, which Trump has singled out for a new round of import levies. Some auto companies plan to increase U.S. production, but the benefits from those efforts won't be immediate. While Trump's base remains loyal, economic worries are beginning to surface.
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President Donald Trump says his economic policies have revived the auto industry and American manufacturing. His comments in the Detroit suburb of Milford on Monday came as many businesses there contend that sweeping tariffs he's imposed against Canada and the rest of the world have hurt Michigan. The Republican president watched General Motors vehicles compete in drag races and looked at other vehicles at a GM facility before he delivered a speech. His tariffs have affected many businesses in Michigan, where the economy relies heavily on trade with Canada.
Hungary's government is investigating a major foreign investment by Chinese automaker BYD. The deal was negotiated by former Foreign Minister Péter Szijjártó, who recently resigned to join BYD as an executive. Prime Minister Péter Magyar announced the probe on Monday, following accusations of a conflict of interest. Szijjártó had facilitated significant government subsidies for BYD during his tenure. The investigation will examine subsidies, tax breaks, and other benefits given to multinational firms under former Prime Minister Viktor Orbán. Magyar also plans to reduce tax breaks for large corporations and introduce stricter environmental rules.
Volkswagen’s CEO has indicated that he’s trying to avoid closing plants as he seeks to turn around the automaker’s performance. The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market, in particular. Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half. It didn’t provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany. CEO Oliver Blume said in remarks published Sunday that "there are more intelligent solutions than closing plants."
Volkswagen has reported weak sales numbers, with a significant drop in China. The company said Friday plans to cut its model lineup by nearly half. Volkswagen said group sales fell 8.6% in the second quarter to just under 2.1 million vehicles. Sales in China alone plummeted by more than one-third. CEO Oliver Blume aims to make VW faster and more competitive by reducing complexity and overcapacities. Volkswagen cited challenges like geopolitical tensions and rising costs. On Thursday, employees protested outside the Zwickau plant, demanding job protections as the factory shifts to electric car production.
On Tuesday, BlueOval SK hosted a job fair at its new executive office space in Elizabethtown that will serve as a recruiting center.
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Toyota is halting production for a few days at all of its automobile and components plants in North America, including its largest plant in the world in Georgetown, Ky.
In an automotive garage in downtown Louisville, students barely out of high school try to work through staged automotive issues on a fleet of Toyota vehicles.
As consumers are test driving the latest models at the Louisville Auto Show this weekend, Governor Steve Beshear will be meeting with auto industry leaders in Germany and Sweden.