Luxury Automobile Maker Reportedly May Increase Production In United States

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Luxury automobile maker Rolls-Royce is reportedly preparing to increase manufacturing production in the United States to avoid tariffs imposed by President Trump.

“The UK engineering giant is drawing up emergency contingency plans to lessen the impact of tariffs, which is likely to involve hiring more US workers and expanding its North American operations,” The Telegraph reports.

The Telegraph reports:

To avoid the most damaging effects of the trade war, Rolls is exploring how much production can be transferred from the targeted countries to the US, where it employs 6,000 workers across 11 sites.

This will allow Rolls to take on more new work without being subject to tariffs.

Rolls warned investors earlier this month about the impact of “rising protectionism”, which has been brought about by Mr Trump’s return to the White House.

A source said the Derby-based manufacturer was “tipping the balance” towards the US in response to the tariffs.

“If you are making something in countries like China then you’ll be looking at whether you can do it in the US instead,” they said.

Per Breitbart:

Additionally, Rolls is also considering potentially shifting production from the UK and Europe should tariffs threaten its manufacturing sites in the regions.

In a message to shareholders, the firm said that trade restrictions “could lead to increased costs and consequently realign the global supply chain”.

“Market exposures are being monitored, and we are adapting supply chain strategies to ensure resilience amid potential protectionist measures and evolving trade dynamics.”

The United States is a critical market for the British firm, accounting for around a third of its global turnover. Top buyers include the U.S. Department of Defence, Boeing, and Lockheed Martin.

Last year, Rolls took in £5.94 ($7.67) billion from its North American operations, compared to £2.6 ($3.36) billion from the United Kingdom and £6.5 ($8.4) billion throughout Europe.

Therefore, it may be advantageous for the company to shift production to the United States amid President Donald Trump’s efforts to rebalance global trade to bring back manufacturing to America.

A Rolls-Royce spokesman said: “We have additional capacity within some of our U.S. operations and continuously seek to explore options to ensure that our global internal supply chain is optimised for delivery to customers in the U.S.”

The report follows news of Hyundai announcing a $20 billion U.S. investment, which includes a $5 billion steel plant in Louisiana.

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