GM hits out against potential US car tariffs

GENERAL Motors has warned the US government that a potential tariff against imported vehicles and auto parts would have a detrimental effect on American companies and jobs.

In a submission last week to the US department of commerce, which is debating whether car imports pose a threat to national security and whether the tariffs should be recommended, the US auto giant said the tariffs could lead to “a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less – not more – US jobs”.

It also warned that the tariffs would have a detrimental effect even if manufacturers chose not to pass on the cost to its consumers, arguing “this could still lead to less investment, fewer jobs, and lower wages for our employees”.

It added: “The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies.”

GM has joined the chorus of opposition against the tariffs by automotive companies with a presence in the US.

Among them, Toyota came out last week to warn that the tariffs would make its Camry mid-sizer – America’s best-selling vehicle – $US1800 ($A2451) dearer, while Mazda, which is beginning construction of a new factory in Huntsville, Alabama, urged the US commerce department “to reject the premise that auto imports are a threat to national security”.

“A tariff is a tax and it will be paid by American consumers,” Mazda said in a statement. “It will significantly increase the cost of every new vehicle sold in America, regardless of where it is built.”