Detroit Auto Show: China-US trade dispute shadows carmakers
Updated 20:34, 17-Jan-2019
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General Motors CEO Mary Barra maintains that last November's decision to close five assembly plants in North America was an important step to keep GM competitive. Barra said that she also hopes that the trade dispute between China and the U.S. will soon be resolved. CGTN's Dan Williams has this report from Detroit.
Cadillac was the quickest carmaker out of the blocks, in unveiling a new vehicle at the North American International Auto Show. The company hopes this SUV, the XT6, will help increase market share. But despite the glitz, and a buoyant market, a cloud hangs over the US auto industry. Cadillac is a division of General Motors. In November last year, GM announced they would be closing five assembly plants in north America. A decision GM maintains is right for the company.
MARY BARRA, CEO GENERAL MOTORS "One of the things that we are looking at is making sure General Motors is strong for the future. We employ over 100,000 people in the United States alone so it is important that we have a strong company. But we are working very hard and we have job opportunities for all of the impacted employees and we are already moving many of them."
Although the focus for now is on this SUV, Cadillac is set to lead GM's electric vehicle charge. The company will soon look to compete against luxury electric automakers such as Tesla, Mercedes-Benz and BMW. That, they say, is one of the reasons the company is taking the step in closing plants now.
STEVE CARLISLE, PRESIDENT CADILLAC "The way I think about what's going on right now, it's a kind of shift or a remix of our business. We've done this transformation to prepare ourselves for an electric future, Cadillac and beyond. So that is always a from and a to. And there is always going to be dislocation and adaptation as you go through that process."
Another issue for carmakers is tariffs. Automakers find themselves in the middle of the trade dispute between China and the US. GM's CEO Mary Barra is hopeful that will soon be resolved.
MARY BARRA, CEO GENERAL MOTORS "Both countries and their leadership are working constructively. They've had good conversations, they've got more plans and we believe for both countries, appropriate trade policies are going to allow both economic to grow."
As for the Auto show, there is also a fear that some of the event's shine has been lost with the likes of Audi, BMW and Mercedes all deciding to skip the event this year.
DAN WILLIAMS DETROIT "Organizers of the event are attempting to change with the times. The show will move to June next year, in the hope a summer date will allow auto companies the chance to make better use of outdoor spaces and provide a more exciting experience for the public."
It would appear that, across the board, the auto industry faces a number of challenges in the coming years. Dan Williams CGTN Detroit.