+1-888-308-5802     
News Contact Us

Trump's tariffs put Volvo Cars’ production in imminent jeopardy

Author : Pankaj Singh | Published Date : 2018-07-21 

Swedish carmaker Volvo has reportedly made it to the headlines for its investment plan worth $1.1 billion in the U.S. that could fall in potential danger in the midst of the tensions in global trade. According to reports, Håkan Samuelsson, the CEO of Volvo cars has immediate ordered for a ‘de-escalation’ phase amid the heated present scenario.

Incidentally, Volvo has opened its first factory in the U.S. last month, outside Charleston in South Carolina. The factory is expected to commence vehicle production soon enough to be exported in the fall. Håkan also seemed rather confident regarding the halt of the production in the middle of the ongoing issues of new tariffs.

According to a statement by Håkan, free trade would prove to be rather profitable for the employment scenario in the U.S. The company alone would be hiring around 4,000 people at the Charleston factory, he says, out of which half of the employees will help build cars that are to be exported. In the event that these tariffs restrict the export of their cars out of South Carolina, it would severely impact the employment scenario at the Charleston factory, he further said.

Håkan Samuelsson was also of the opinion that the automotive business will not get any stronger after the imposition of new tariffs, while further asserting the urgent need to come in to some de-escalating phase.

President Donald Trump in an attempt to reduce the trade deficit in the United States, has repeatedly declared import tariffs against other countries. One of his most recent threats was to impose a 20% levy on European carmakers, which could easily disrupt the entire Europe automobile industry as well as their economic performance.

For the record, Volvo Cars is owned by Chinese manufacturer Geely. In retrospect, this factor becomes specifically relevant given that Trump has raised tariffs for Chinese goods twice this year and intends to impose more in the future, claim experts.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Israeli AIOps firm Loom Systems to be acquired by ServiceNow

Published Date: 2020-01-27         Author: Pankaj Singh

California based cloud computing company, ServiceNow, Inc. has reportedly announced its plan to acquire Israel-based AIOps firm, Loom Systems. Through the takeover, ServiceNow looks to add AIOps into its portfolio. AIOps has become an integral part of IT management. Essentially, it is the applica... Read More

Tata Motors rolls out BS-VI complaint Altroz premium hatchback

Published Date: 2020-01-24         Author: Pankaj Singh

Indian automotive giant, Tata Motors has forayed into the premium hatchback market by introducing Altroz, a car that would challenge the Hyundai Elite i20 and Maruti Suzuki Baleno. The hatchback is said to available at an introductory price of Rs 5.29 lakh ex-showroom and comes in BS-VI complaint di... Read More

Houston-based McDermott International to soon file for bankruptcy

Published Date: 2020-01-22         Author: Pankaj Singh

Oilfield service company, McDermott International has recently confirmed plans to file for Chapter 11 bankruptcy. Sources close to the matter cite that McDermott would file a prepackaged restructuring plan at the United States Bankruptcy Court in Houston. The restructuring plan, which has the bac... Read More

© 2020 Fractovia. All Rights Reserved