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Trump highlights auto expansion in State of the Union address

And the fact check is in...


Donald Trump has praised car manufacturers for plans to expand their American production capabilities in his State of the Union address in Washington, DC.

"Many car companies are now building and expanding plants in the United States — something we have not seen for decades," Trump told US Congress, arguing he'd "halted government mandates that crippled America's great, beautiful autoworkers".

Fiat Chrysler has announced plans to invest US$1 billion ($1.3 billion) in its Warren, Michigan truck plant instead of moving production to Mexico, in a move set to create 2500 jobs. The company said the move was made possible by new laws cutting the corporate tax rate from 35 to 21 per cent.

Above: The Volkswagen Atlas is one of many cars built in the USA.

Along with FCA's plans, Toyota and Mazda intend to build a US$1.6 billion ($2 billion) production plant in Huntsville, Alabama – the only brand new production centre announced during Trump's time in office.

Do these plans give credence to what Trump is saying? According to fact-checking investigations in the USA, the answer is sort of. 

The Guardian, AP Fact Check and USA Today all point out that Fiat Chrysler isn't closing its Mexican factory. The plant will still build cars for export, although domestic truck manufacturing will be moved to Michigan.

President Trump's comments about the USA having not seen new manufacturing plants in recent history is off base, too. Toyota opened a Mississippi plant in 2011, while Tesla has been producing cars in the USA since 2010. Hyundai has a plant in Alabama that was opened in 2005, and production at the Volkswagen facility in Chattanooga, Tennessee, kicked off in 2011.

Perhaps most importantly, it's worth noting that American automakers have been growing steadily since Obama Administration-era bailouts. Although that growth hasn't stopped since Trump came into office, claiming he's responsible is a stretch.

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