FIAT-CHRYSLER CEO: There's 'no doubt' Trump's economic plans will be an 'overall positive for us'
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Fiat-Chrysler Automobiles CEO Sergio Marchionne is optimistic about President Donald Trump's plans.
During the company's quarterly earnings call on Thursday, Marchionne was asked about the economic agenda and plans of Trump. Marchionne said that the president's plans — including possibly a border tax adjustment and more — are a good thing for the carmaker.
"There's no doubt that the full delivery of the set of financial – the set of economic parameters that President Trump has raised are overall positive for us," said Marchionne.
The CEO argued that the possibility of a border tax adjustment combined with Trump's promise to cut taxes to "15% to 20%" would end up raising profits for Fiat-Chrysler.
"I mean, if we — there's this whole notion of deductibility of capital that the border tax adjustments if properly executed with symmetrical treatment of revenues and cost of goods sold," said Marchionne. "If all those things were to happen including a reduction in corporate rate, these things are all bottom-line accretive."
Marchionne was one of the top executives to meet with Trump at the White House on Tuesday. Trump told leaders that he wanted them to bring more production back from overseas to the US.
According to Marchionne, Fiat-Chrysler is decreasing production of certain Jeep models which may allow the company to bring back some of its production of Ram brand trucks from Mexico in order to appease the president.
"And one of the things the press release made reference to is the fact that although there is no commitment to do so that this realignment would allow at the relevant time for the US manufacture of the Ram heavy-duty truck which is currently being produced in Mexico," said Marchionne.
The carmaker CEO did say that he doesn't expect significant changes in economic policy to happen before 2019.
Marchionne did express some doubt that Trump will be able to pass his entire economic platform, and anticipated continued talks with the administration.
"I'm unsure as to what part of that package, if any, is going to get rolled out," said Marchionne. "And I think we intend to work with President Trump and his staff to try and sort of — at least we gave them our view as to what the impact is."