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  #1  
Old 01-16-2017, 06:04 PM
paranoidgarliclover paranoidgarliclover is offline
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Default Trump and German car manufacturers

Hate to get political, but this DOES relate to what we talk about here:
https://www.yahoo.com/finance/news/t...--finance.html
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  #2  
Old 01-16-2017, 06:31 PM
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Ascariss Ascariss is offline
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Simple, build the cars in Canada, with the cheaper Canadian dollar, it won't be as expensive as building in the US, but would cost more than Mexica, and so far Trump hasn't threatened any import duties from Canada....yet.

In the end, if companies don't yield to trump pressure, prices in the states might be going up in the not to distant future.
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Old 01-16-2017, 06:49 PM
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Trump wants to renegotiate policies that are bad for the USA and he knows how to get the attention of companies and the countries they hail from. I think he also plans a showdown with Merkel. This will definitely be interesting.
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Old 01-16-2017, 08:41 PM
ocn75 ocn75 is offline
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Don't mean to be negative, but threats of huge taxes doesn't seem to be a good business model. Let us hope that Trump doesn't send the US into recession - he seems to be creating lots of conflict and uncertainty, which doesn't bode well for the future.
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Old 01-16-2017, 08:59 PM
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Quote:
Originally Posted by ocn75 View Post
Don't mean to be negative, but threats of huge taxes doesn't seem to be a good business model. Let us hope that Trump doesn't send the US into recession - he seems to be creating lots of conflict and uncertainty, which doesn't bode well for the future.
Question: If you see the promise of a big tariff, what is the first thing you do?

Answer: Negotiate.

Brilliant.

He is creating conflict and uncertainty as a tool to get people rattled so that he can push forward sound economic policies the the outgoing regime was incapable of creating.

Trump won't send the USA into a recession, quite the opposite is more likely.

The ONLY reason the economy here could stumble would be because of Obama's record running up of the all-time debt (he more than doubled it), the high unemployment (highest since the great depression with people not counted because they've been jobless "too long"), and the record number of people on Welfare.
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Old 01-16-2017, 11:30 PM
paranoidgarliclover paranoidgarliclover is offline
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Quote:
Originally Posted by swizzle View Post
Answer: Negotiate.
But what Trump trying to negotiate, in this specific case? Europeans presumably don't want Chrevolets b/c most Chevys are totally "wrong" for their market....

So luxury makes produce more cars in the U.S. that are being sold in the U.S. That helps with jobs a little bit (since many of those manufacturers already have factories here). And then...?
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Old 01-17-2017, 12:19 AM
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Quote:
Originally Posted by paranoidgarliclover View Post
But what Trump trying to negotiate, in this specific case? Europeans presumably don't want Chrevolets b/c most Chevys are totally "wrong" for their market....?
Repeat after me: "'No Chevys in Europe' is a dodge.'" (Yes, so I did a pun.)

With the Germans--aside from VW--selling strongly here, Trump is no doubt angling for more American production jobs. The "no Chevys in Europe" is a complete misdirection so that Europeans will go jingoistic and then Trump can say "Ah, HA!" and use that.

Chevys are not "wrong" for Europe given that the Malibu and the Insignia are closely related, as are the Cruze and Astra, as are the Spark and the Karl. To oversimplify, Chevys are Opels in Europe.
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Old 01-17-2017, 08:41 AM
mick78 mick78 is online now
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American cars do sell in Europe if you like - one Ford policy, e.g. - and most Opels end up as Buick (not Chevy) in the US. Chevroelts were sold here as well, but GM decided to pull the plug, and to be fair, Chevys weren't really cheaper than an Opel, just with way fewer dealers and less brand image, especially those die hard US car fans who saw it as an insult that a brand famous for Corvettes, hot Camaros and the old bel Air now sold tiny Korean made hatchbacks. Also at least 50% of US cars are simply to big for European cities, not fitting into a standardized garage spot or some car washes. Smaller cars often are cheaper made, but the initially way cheaper price in the US hardly ever end up in Europe too

Those cars that are good, do sell - Mustang (best selling sports car in Europe), various Jeeps (the renegade - though European made - is everywhere, the GC too, and before the Dodge Caravan got gargantuan with the boxy shape and was renamed Lancia in Europe, it did sell well too. Corvette is a relevant player in it's segment as well.

As for tariffs: Ultimately, it will make cars more expensive, as US manufacturers thankfully will adapt their prices close to the higher import prices, as visible in all "high tariff" markets around the world. If it is there for negotiations fine, but any rise in production cost or import duties will end up at the customer, not the bad non US manufacturer....
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Old 01-17-2017, 03:24 PM
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I really think you'll see concessions happen to make the talk of tariffs go away. Here's a possible concession: BMW, Mercedes, and Audi announce plans to build all of their EVs in the USA. Trump is posturing to see who will blink first and the "build better cars" moron lost big time by coming off as culturally hateful.

Last edited by swizzle; 01-17-2017 at 04:03 PM.
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Old 01-18-2017, 02:12 AM
caarmike caarmike is offline
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If I were one of the car companies threatened by Trump I would call his bluff. Government by angry tweet is not going to be sustainable, especially since he can't implement most of his ideas without Congress's approval.

And as Mick78 said, this higher tax will be taken straight out of the consumer's pocketbook.

If I was an auto exec this is how I'd respond:

"Mr Trump, thank you for your concern, however we must make business decisions in the best interests of all our stakeholders. If you would like to implement changes in tax or trade policy, please do so through the appropriate channels. We will respond as appropriate when said policy is implemented."
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