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On Thursday, the CEO of Mercedes-Benz showed the company plans to invest more in the US over the next few years, and also discussed how tariffs will affect the automaker's business.
Mercedes-Benz CEO Ora Karenius announced the results of its quarterly results, saying the company has been operating in the US for over 120 years and has “invested tens of millions of dollars in the US.” He later said he called a reporter over the phone. . ”
“There are two major operations on the passenger side, one in Alabama and the other in South Carolina,” Kellenius said. “Directly, we employ over 11,000 people in the US. If all suppliers and their type of suppliers rely on their final assembly jobs, the usual calculation is about 1-10. Because of this, there are an additional 100,000 employees. Employment is associated with these factories.
“Hundreds of thousands of jobs, tax revenue and more are in the footsteps of Mercedes-Benz in the US,” he explained. “What am I pointing out? We are also an American company. Yes, we have German headquarters and European origins, but we feel American.”
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Mercedes-Benz CEO Ola Kellenius said the company has begun increasing its investment in the US (Andrew Caballero-Reynolds / AFP Getty Images / Getty Images)
Kerenius pointed out that Mercedes-Benz has a research and development activity in Silicon Valley and a presence in Michigan. He also indicated that the company plans to increase its US investment in the future to expand its footprint.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| mbgyy | Mercedes-Benz Group AG | 15.5863 | -0.26 |
-1.66% |
“What's ahead? We're ready to continue investing billions and want to expand our footprint in the US. We're committed,” he said. Ta. “Lower-known fact – we are one of the leading industrial exporters outside the US. Two-thirds of vehicles made from Tuscaloosa plants are actually out in the world.
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Källenius said Mercedes-Benz is mindful of how policy changes will affect cash flow and investment opportunities. (AFP/Getty Images)
Given the global presence of Mercedes-Benz, Karenius said changes in tariffs or other aspects of trade policy could affect investment decisions in the long term. president Donald Trump Yesterday he signaled that he plans to impose a 25% tariff on imported cars.
“Of course, changing trade policy in both directions is very important to us,” he explained. “As you correctly point out when we make investment decisions about new models, you cannot move plants from one continent to another on weekends. They are long-term commitments. It takes 2-3, maybe 4 years to make them, kinds of adjustments.
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Mercedes-Benz CEO Ora Karenius said that zero car fares will drive investment between the US and the European Union. (Artur widak/Nurphoto via Getty Images/Getty Images)
Källenius also said “trade policy could affect our business model,” and policymakers will ultimately decide what trade negotiations will come, while the US and European Union (EU) are He said it would either lower the tariffs between them or even spur investments.
“In the case of the EU, tariffs are actually heading towards the EU rather than the US at this point. They would encourage companies like us to invest more,” he explained. “If they come up with such a solution, it would certainly be great.”
“I'm not going to speculate on the outcome of negotiations. All I can say is that Mercedes-Benz is committed to the US,” he added.
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“We must generate positive cash flow to drive investments, and financial strength equals the strength of innovation and returns to shareholders,” said Celenius. “We are very aware that it can negatively impact our business model and reduce cash flow. Therefore, if you operate in an environment as a strong member of the US industrial family, it will be considered. Hopefully, nothing prevents us from increasing our investments and more in the US.”
