The head of Fiat-Chrysler Automobiles stresses he isn't sure what the Donald Trump administration has in mind when it comes to renegotiating the North American Free Trade Agreement, but Sergio Marchionne has a dire warning for the Canadian auto sector.
Marchionne says if the U.S. decides on more protectionist policies, it could be lethal to FCA's production in Ontario, and in particular to the Windsor Assembly Plant.
He told reporters at a news conference at the North American International Auto Show in Detroit that an increase in tariffs is problematic, because so much of what is produced in Windsor and Brampton is exported to the U.S. it would hurt the business case to remain in Canada.
However, Marchionne believes much of President-elect Donald Trump's rhetoric is aimed at Mexico. Trump has recently suggested imposing taxes on cars imported into the U.S. from Mexico.
Marchionne believes the U.S. and Britain may adopt more nationalistic policies before a happy medium is found between protectionism and free-wheeling globalization.
