The inauguration of the 45th President of the United States, Donald Trump, is about to take place, and big names in the automotive industry are ready for it. Ford, General Motors, and Toyota, among the biggest automobile makers in the world, have agreed to participate and fund the event by pledging the event its biggest share of one million dollars as well as providing cars.
This move is not merely an appreciation of light of the President-elect’s political plans but a purely business calculation to establish relations with the forthcoming administration that will shape the course of the auto industry in the future. Trump has declared his position on indigenizing the American auto industry and introducing tariffs on imports from Mexico, Canada, and China, something that may have a bearing on car makers assembling automobiles across North America and internationally.
Arguably, it is indeed very rare that we hear of CEOs of two of the biggest automobile giants, Ford’s Jim Farley and GM’s Mary Barra, concordant with the new administration and poised to make their voice heard on policy shifts they consider unfavorable. This is particularly noteworthy because there are reports that Trump wants to remove the federal tax credit for electric cars – a decision that could devastate firms such as Tesla and has implications for firms like Ford and GM which have staked a lot on electric cars.
It seems that the automotive industry has always been one of the essential sectors of the American economy and also partially defined world trade relations. Many top companies are these days becoming the favorites of the global leaders, with the world turning into a global village. To its credit, by funding Trump’s inauguration, Ford, GM, and Toyota are actively positioning themselves to be part of those conversations.
There is the political-business balance—a thin line that is very well balanced by these companies. That way, they are investing in a historic event for the country and also ensuring themselves success in this new political order.
In the new year, as Donald Trump begins his presidency, everyone is waiting to see what his administration holds for the automotive sector. The political environment can be full of changes and chaos, but these companies are willing to stay and keep on being top market shapers. In this way, they’ll be able to have a strong say in matters regarding policies once the new administration assumes office.
Although it may sound like a good deed that major automobile manufacturers wanted to be associated with Trump, Ford, GM, and Toyota committing $70,000 to the inauguration is much deeper. It is long-term planning to counter their future position in the industry, tackle the dynamics of the modern day industry, and fit the future objectives of American business and international relations. The automotive industry, like the entire world, is observing this and waiting to see how it happens, and these are the corporations that are on the front lines.
