We often hear about US industries that choose to go abroadperhaps looking for cheaper labor, but what about the firms which are now choosing a return to American soil? Here we take a look at ones from the automobile industry.
The Groupe PSA (French multinational automobile manufacturer of cars including Citroen, Peugeot, Vauxhall) is planning a comeback of its Peugeot brand. Back in 2016 the firm started working on a 10-year plan to create its presence in North America. In 2018 it offered a car-sharing service in Washington, DC.
Within the same industry the Chinese wish to make a presence in America too. The problem there of course is the ongoing US-China Trade war and the US’s increasing vigilance vis-à-vis Chinese technology. Despite this, Americans are really starting to favor electric vehicles with government policy promoting eco-friendly cars. according to GAC Motor President, Yu Jun, the firm’s “ultimate objective is to build the company into a world class brand and a global player,” which would obviously benefit from the creation of a presence in the US.
Yun really believes that the his brand will ultimately win over the Americans despite the politically-economic issues. Indeed, the company’s Entranze electric concept car was unveiled in Detroit at January’s North American International Auto Show held in Detroit and received well. Entering the US market in 2015, Yu pointed outat the show that the firm has since “been making steady progress” in the US market.
Then there is Volkswagen. supporting approximately 16,400 jobs in Tennessee via the Chattanooga assembly plant and other impacts, a substantial amount of revenue is being generated from the firm. for example, in 2017 Tennessee took around $73.8m in state and local taxes. It was good for Volkswagen too since its economic output in Tennessee was approximately $8.56 billion in 2017.
So for automobile industry workers, the US economy is really working!