Euro Automakers Pushing for US/EU Free Trade Deal

VolkswagenVolkswagenGermany, 1938 > present98 models
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31 videos
is backing a proposed free trade deal between the United States and European Union that could be advantageous to automakers on both sides of the pond.

“We would be very happy if the US puts in place some trade agreements that allow freer movement of vehicles between the US and other markets around the world,” said VW USA President Jonathan Browning. “For example, Mexico has a variety of both bilateral and multi-lateral trade agreements that make it a great production base into Europe and South America.

The deal called the Transatlantic Trade and Investment Partnership has been in negotiations during 2013 and is nearing a close. If successful, the deal would not only lower import and export duties but would also align safety and emissions to make it easier to develop cars for the markets.

Browning says that currently investing in the US gives a relatively limited market. While there is already a free trade agreement among Mexico, the US and Canada, building cars in the US basically limits automakers to these three markets. The agreement would allow cars made in the US to be easily exported to Europe as well.

“At the moment, when you look at manufacturing investment in the US it has to essentially make its case on the US volume,” said Browning.

Among European automakers, BMWBMWGermany, 1918 > present87 models
8471 photos
43 videos
, MercedesMercedes-BenzGermany, 1924 > present197 models
9852 photos
33 videos
and VW have dedicated US factories. AudiAudiGermany, 1909 > present83 models
8213 photos
27 videos
is building a factory in Mexico, and FiatFiatItaly, 1899 > present159 models
4864 photos
35 videos
builds the 500Fiat 500 (modern)Italy, 2007 > present240 versions
581 photos
7 videos
for the North American market at a ChryslerChryslerUnited States of America, 1925 > present70 models
873 photos
1 video
factory in Mexico.

Source: Autocar