American Car Buyers Will Pay the Price for a Mexico Tariff

[jpak]

http://www.nbcnews.com/business/autos/american-car-buyers-will-pay-price-mexico-tariff-n713321

The increasingly contentious battle between the Trump administration and Mexico could lead to some significant collateral damage, most notably to car makers and car buyers.

After the Mexican government rejected a White House demand to pay for a border wall, President Donald Trump floated the idea of imposing a 20 percent tariff on goods imported from south of the border.

This, in addition to a possible reopening of NAFTA trade deals, means that automakers — who made extensive use of NAFTA to set up a network of manufacturing operations in Mexico — could be among the hardest hit.

How to Respond?

For now, there is widespread disagreement about how to respond to the Trump plan. Japanese automakers Nissan and Toyota say they are looking for ways to increase U.S. production. Ford's CEO, after meeting with the new president last week, is rejecting the idea of building any new U.S. factories. Meanwhile, Fiat Chrysler's chief executive says it may be time to rethink the possibility of a merger with domestic giant General Motors.

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[Cryptoad]

1. Most auto parts used to assemble US cars are made in Mexico,,,,,

[Glamrock]

2. I don't buy American cars...

They're shit. Profit before quality. Two cars ago was a Mazda, never had a problem. Last car was a Mitsu 3000gt. Over 12 years I replaced brakes, oil, tires, and exhaust. Current car? Mini Cooper S. Same thing. Did have to replace timing chain, but it was within the mileage that's expected. My wife has a second generation PT Cruiser. I've replaced the front control arms three times. Chrysler knew this was a problem during the first generation and let that problem continue until they discontinued the model. Fuck American cars.

[Motown_Johnny]

4. My Ranger had over 300,000 miles when I sold it, my Explorer has over 200,000 miles right now

and still runs great. My Taurus only has about 62,000 miles on it but it runs like brand new.

Doesn't the $600 billion dollar a year trade deficit mean anything to you?

In my opinion, you are part of the problem. That is really a shame seeing we both have Bernie avatars.


Although, I must agree, the PT Cruiser is a pretty crappy car. Not a great choice.

[Glamrock]

5. You've had better luck than me

Our work truck is a Ford. It's got 260000 miles on it. However, the almost monthly repair bills over the last 5 years could have paid for two more. My dad used to give me shit about it, just like you. He now owns a VW. I agree with you that I'm part of the problem. But $25000+ is too large an investment for me to purchase something from a company that puts shareholders ahead of quality. You wanna blame somebody, blame Reagan first. He was the one who allowed stock as compensation. If we fix that, and I still buy foreign? I'll be more than happy to admit I'm the problem and change my ways. I mean, if the quality was there, they'd offer a 10 year warranty too.

[Motown_Johnny]

3. unless we start building those parts here (or in Canada).

If you think I give a damn about Nissan or Toyota you are sadly mistaken.

If Ford thinks it can absorb the increased cost, that is their decision to make. They are the one US automaker that didn't need a "bailout" so I tend to trust their judgement. This just proves that a tariff isn't that big a deal.

Fiat merging with GM? I am not crazy about that idea but I don't like Chrysler being owned by a foreign company either so I guess I am neutral about this one. Neither option appeals to me.


To sum things up, Fuck NAFTA!