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Old January 26th, 2017, 09:44 AM   #31
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That's almost funny, but it's not. It's just some more stupid. The six-step plan has nothing to do with SD's original point which was:

Right now Mexico imposes a tariff on every vehicle assembled in the USA and sold in Mexico.

Just stop now. No information on the internet upholds that statement. I already looked.
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Old January 26th, 2017, 09:46 AM   #32
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Originally Posted by Sabcat View Post
They can still buy a 3er.

I don't think that you understand what is being proposed.
They're going to pay that much more?
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Old January 26th, 2017, 12:34 PM   #33
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They're going to pay that much more?
That is up to them and BMW. As I already said the "X" cars are already built in the states whereas the 3 series is not. Want to avoid the 35% build it in the states. Though due to our crazy labor laws I am guessing it makes more economical sense to build them in Mexico. Remember they are an international company. The US is just a % of that market and they are saving the 35% on the more expensive cars that is also the US largest market share.
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Old January 26th, 2017, 12:40 PM   #34
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That is up to them and BMW. As I already said the "X" cars are already built in the states whereas the 3 series is not. Want to avoid the 35% build it in the states. Though due to our crazy labor laws I am guessing it makes more economical sense to build them in Mexico. Remember they are an international company. The US is just a % of that market and they are saving the 35% on the more expensive cars that is also the US largest market share.
They are saving 35%? You're going to have to explain that one to me, or is it like a tax break that all corporations get is a subsidy for big oil?

Retooling a factory to build a different car is an expensive proposition. And if they did, where would the X cars be built, in Mexico?
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Old January 26th, 2017, 12:50 PM   #35
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They are saving 35%? You're going to have to explain that one to me, or is it like a tax break that all corporations get is a subsidy for big oil?

Retooling a factory to build a different car is an expensive proposition. And if they did, where would the X cars be built, in Mexico?
If all cars built outside of the US must pay a tariff if you are going to build a factory inside the US to avoid the tariff which do you choose the $100k car or the $50k car? Now remember you are going to be exporting them from your factory too. Also take into account the nation that you are based out of may require all cars built there are going to have to be electric soon?

It is a no brainer. US gets the SUV and Mexico gets the midsize 3/4 models.

There is no way the 35% you would save on the tariffs to the US would out weigh the labor and regulation costs on the midsize car world wide.

What don't you understand?
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Old January 26th, 2017, 01:01 PM   #36
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If all cars built outside of the US must pay a tariff if you are going to build a factory inside the US to avoid the tariff which do you choose the $100k car or the $50k car? Now remember you are going to be exporting them from your factory too. Also take into account the nation that you are based out of may require all cars built there are going to have to be electric soon?

It is a no brainer. US gets the SUV and Mexico gets the midsize 3/4 models.

There is no way the 35% you would save on the tariffs to the US would out weigh the labor and regulation costs on the midsize car world wide.

What don't you understand?
Several things. Are you arguing that SUVs don't have a market outside the US? And I'm still not sure. Which cars are you referring to when you are asking about choosing the $100K or $50k?

And the saving of 35% on what compared to what?

The all electric is a red herring. Don't hold your breath on that one. I might believe that it will be staged in like fleet mileage requirements but despite your statist paranoia, no worries.
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Old January 26th, 2017, 05:53 PM   #37
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It will mean higher priced vehicles.

Please substantiate that claim.

They? You mean, "us." We, the buyers, will pay for whatever tariffs, taxes, etc. that are imposed by our laws.
It appears that the tariff was phased out over 10 years after NAFTA was signed. As for who pays for tariffs and taxes it can only be passed on to the buyers if there is no competition. In a highly competitive market if we were to tariff the vehicles assembled in Mexico it would not be able to be passed on to the consumer because there are too many other options that are US assembled and would not have the tariff.

Quote:
By the end of 1993, Mexico imposed tariffs of 20% on cars, 10% on dump trucks, 20% on other trucks and buses, and 10 to 15% on auto parts. As a direct result of all Mexican trade barriers, the Mexican auto industry is highly inefficient and non-competitive. Nearly three-quarters of a centuryís protection and regulation have produced an industry characterized by small and outdated plants, high costs, and low levels of productivity. In Mexico, only Fordís Hermosillo plant and a new Nissan factory at Aguascalientes are considered world-class facilities by international industry standards.

Under Nafta, the Mexican tariff of 20% on autos were reduced to 10% upon the Agreement's implementation. This will be phased out in equal increments over the following nine years. The Mexican duty of 10% on trucks was cut in half immediately upon Nafta's implementation. This will be phased out in equal increments over the following four years. The Mexican Auto Decrees will be phased out by January 1, 2004. Thus, the pre-Nafta requirement that an auto manufacturer's exports be 200% as much as it imports will be eliminated as well.
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Old January 26th, 2017, 06:26 PM   #38
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Several things. Are you arguing that SUVs don't have a market outside the US? And I'm still not sure. Which cars are you referring to when you are asking about choosing the $100K or $50k?

And the saving of 35% on what compared to what?

The all electric is a red herring. Don't hold your breath on that one. I might believe that it will be staged in like fleet mileage requirements but despite your statist paranoia, no worries.
No wonder you don't understand I didn't say any of that. I am sorry that i assumed that you would equate the SUV to the higher price and that you read the article.


You are cute.
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Old January 27th, 2017, 04:21 AM   #39
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Think about this, US automakers move assembly to Mexico which increases their shipping costs. Why do they do it? Is it because they lack patriotism? Is it because they hate American workers? The left will have us believe that they only save $600 on labor. Is that enough to offset the additional shipping costs and time? There is a reason that US automakers are assembling in Mexico over the US.
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Old January 27th, 2017, 06:53 AM   #40
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Think about this, US automakers move assembly to Mexico which increases their shipping costs. Why do they do it? Is it because they lack patriotism? Is it because they hate American workers? The left will have us believe that they only save $600 on labor. Is that enough to offset the additional shipping costs and time? There is a reason that US automakers are assembling in Mexico over the US.
What's the reason?
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