US President Donald Trump’s strategy of imposing extensive tariffs aims to incentivize foreign manufacturers to relocate their production to factories in the US, thereby creating jobs for Americans. During an interview with Newsmax, a conservative network, Trump claimed that this approach has already shown results. He mentioned that car manufacturers are establishing new plants at an unprecedented pace.
In support of Trump’s claim, the White House cited announcements from car companies Hyundai, Stellantis, and Honda regarding plans to increase production in the US. However, automotive industry experts argue that Trump has exaggerated. Most of these announcements involve expansion or reallocation of investments at existing facilities rather than the construction of new plants. It is also uncertain whether these plans will be carried out.
Dimitry Anastakis, a professor of business history at the University of Toronto, believes it is premature for Trump to take credit for these plant expansions given his short time in office. According to Anastakis, plants are typically planned years in advance. There is no data available to confirm whether the recent announcements represent a record-breaking level of investment in automotive manufacturing.
Several foreign car manufacturers have recently announced significant investments in US production. Hyundai plans to increase production capacity at its Georgia Metaplant, and also announced a $21 billion investment in US electric vehicle production. Honda intends to manufacture its next-generation Civic hybrid vehicle in Indiana instead of Mexico. Stellantis, the company that owns Chrysler and other car brands, announced a $5 billion investment in the US, including the reopening of a closed assembly plant in Illinois.
Experts warn that these announcements should be viewed with caution. The plans are subject to modification before they come into effect, and none of the moves involve the construction of new plants as Trump claimed. Instead, they involve ramping up production at existing plants or reopening a closed plant. Companies are likely preparing to adapt to political realities by accelerating already decided launches. These launches can then be positioned as victories for Trump.
There is no long-term data available to compare the recent car manufacturer announcements to historical context. However, there has been a renaissance in new automobile manufacturing investment over the past few years, with a focus on electric vehicles. The Bipartisan Infrastructure Law and the Inflation Reduction Act signed by President Joe Biden have provided incentives for the US manufacturing base. More than half of the investments tracked by Atlas Public Policy, a research and consulting firm, were announced after Biden signed the Inflation Reduction Act in 2022. These
Source: https://www.aljazeera.com/economy/2025/4/2/are-us-car-plants-being-built-at-record-rates-as-trump-claims?traffic_source=rss
