PolitiFact rated Mostly True a Jan. 3, 2017, tweet by President-elect Donald Trump saying General Motors was sending a Mexican-made model of the Chevrolet Cruze to U.S. dealers tax-free. The review found the claim accurate for one body style, but most Cruzes sold in the USA were built in Ohio.
Where Cruzes were built
- GM said all Cruze sedans sold in the USA were built at its Lordstown, Ohio, assembly plant. It sold 185,500 Cruze sedans in the USA in 2016.
- GM built the Cruze hatchback in Mexico for global markets starting in mid-2016. Of 29,000 made there in 2016, 4,500 were sold in the USA, about 15%.
- After publication, GM told PolitiFact it also built about 8,000 Cruze sedans in Mexico in late 2016 and shipped them to the USA to support the launch of the new Cruze at Lordstown.
Why no duty
Under NAFTA, cars from Mexico entered the USA duty-free if at least 62.5% of their value was North American. Experts told PolitiFact the Cruze hatchback qualified. A car imported from Mexico can also contain parts from U.S. suppliers.
Source & credit
Source: PolitiFact: “Trump: GM’s Chevy Cruze made in Mexico, tax-free into U.S.”, Jan. 4, 2017.