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Good luck, American Car Companies (and buyers) (1 Viewer)

Dans La Lune

Do you read Sutter Cane?
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You can make cars exclusively in the US, but it will cost several times more, and you may not get a new vehicle for a few years (at best). It's like making an American sandwich, only to find out that bread only comes from Canada.

...

'Manufacturing a US car often involves Canada due to the integrated nature of the North American automotive industry. Before the Canada–United States Automotive Products Agreement (AAPA) was signed in 1965, tariffs on vehicles and automotive parts between the two countries led to a highly segregated industry. However, the agreement eliminated these tariffs, leading to a more integrated and efficient automotive supply chain.

Today, many components and parts for US cars are manufactured in Canada. For example, in 2022, Canadian imports of automotive parts and components totaled US$15.4 billion, with the United States accounting for approximately 62% of the total Canadian automotive import market. This indicates a significant flow of parts and components between the two countries.

Several major US automakers have significant operations in Canada, including Ford, General Motors, and Stellantis (formerly Fiat Chrysler). These companies have announced substantial investments to prepare their production lines for electric vehicles. For instance, General Motors has invested US$785 million, Ford US $1.5 billion, and Stellantis US$1.14 billion in their Canadian facilities.'

...

'In the process of making a car, parts and components of motor vehicles cross the Canada-US border several times. If these components are taxed each time, it would amplify the increase in production costs and increase the prices paid by consumers on both sides of the border. The exact number of times manufacturing components cross the border can vary, but the context suggests multiple crossings, often up to eight times during the manufacturing process for some products.'


 
25% added to the components sourced from Mexico and Canada and 10% from China.

Paid by the importer (Ford, Stellantis & GM) and tacked on to the sticker price for the purchaser to eat.

The new tax goes into the coffers of the External Revenue Service, which is a misnomer since the revenue is paid by Americans.

Trump will gleefully claim that Canada, Mexico and China are paying this and MAGA, never one to understand even the most basic economics, will eat it up.

Who will the resulting inflation be blamed on?
 
25% added to the components sourced from Mexico and Canada and 10% from China.

Paid by the importer (Ford, Stellantis & GM) and tacked on to the sticker price for the purchaser to eat.

The new tax goes into the coffers of the External Revenue Service, which is a misnomer since the revenue is paid by Americans.

Trump will gleefully claim that Canada, Mexico and China are paying this and MAGA, never one to understand even the most basic economics, will eat it up.

Who will the resulting inflation be blamed on?
Biden!
 
I'd say that the republic experiment is probably over. It survived multiple colonial invasions, a civil war, and two world wars. It was felled by a TV channel. So it goes.
 
It was felled by a TV channel. So it goes.
This made me LOL but it's a case of (to quote Homer Simpson) it's funny because it's true.

Throughout history people like Trump have been able to enfranchise mobs of poorly educated, malcontent people.

Fox sped up this process.
 
Hell, crushing American businesses isn't the half of it...



 
Hell, crushing American businesses isn't the half of it...





Taking taxpayer's money down to the casino and going 'all in' on a single roll of the dice.

I'm sure it will be fine.
 
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This made me LOL but it's a case of (to quote Homer Simpson) it's funny because it's true.

Throughout history people like Trump have been able to enfranchise mobs of poorly educated, malcontent people.

Fox sped up this process.
Truth is a vanishing commodity. I'm in a weird place right now. I find myself tempted by truth.
 
Truth is a vanishing commodity. I'm in a weird place right now. I find myself tempted by truth.
What does "tempted by truth" look like?
 
25% added to the components sourced from Mexico and Canada and 10% from China.

Paid by the importer (Ford, Stellantis & GM) and tacked on to the sticker price for the purchaser to eat.

The new tax goes into the coffers of the External Revenue Service, which is a misnomer since the revenue is paid by Americans.

Trump will gleefully claim that Canada, Mexico and China are paying this and MAGA, never one to understand even the most basic economics, will eat it up.
Hopefully the car companies will be very vocal, loudly declare the truth about this.
Who will the resulting inflation be blamed on?
And unemployment. Any American industry that can do so will move manufacturing and assembly offshore to bypass the tariffs.
 
TESLA Already laying off workers. The reported action is Musk specifying a 10% reduction in international workforce with only "the most critical positions" retained. Analysts project that to be anywhere up to 10,000 workers.

The hurt is coming biggly.
 
TESLA Already laying off workers.

The hurt is coming biggly.
Teslas have lots of steel and aluminum. Guess where that comes from.
 

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