"General Motors is sending Mexican made model of Chevy Cruze to US car dealers -- tax free across border, make in USA or pay big border tax!"
GM's 1st Response:
"General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the US are built in GM's assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the US."
The Media (LLN)
The Cruze's departure was part of a larger $5 billion plan to expand production capacity south of the US border. The US-market Cruze hatchback is already imported from Mexico. To be clear, GM previously claimed it would continue to build the Cruze in Lordstown once the Ramos Arizpe plant ramps up. Some of the factory output will be sold locally, eliminating the need to import the cars to Mexico from South Korea, but the company has not explicitly ruled out an eventual reduction or elimination of output from Ohio.
GM might be able to challenge any Trump tariff in court and win; the 1974 law that Trump would likely cite as the source of his trade authority allows presidents to target countries, not companies, said Gary Hufbauer, a researcher at the Peterson Institute for International Economics and a former U.S. government tax and trade official. -Source, Bloomberg.com
Percentage of 2016 Cruze sedan parts made in Mexico: 26%
Percentage of 2016 Silverado parts made in Mexico: 51%
-Source, The Wall Street Journal, 01-04-2017
GM's 2nd Response (January 4th):