How are auto makers going to handle tariffs?

[Blue highway]

Gifted article from WSJ.
I have always wondered how it is cost effective to send parts back and forth but I assume a public traded company has figured out the way to do it at the lowest cost to its shareholders.

https://www.wsj.com/business/autos/...b?st=dfqP4d&reflink=desktopwebshare_permalink

This is really long (~1 hour) but I found it worth the time as it unintentionally provides some perspective on the Mexico tariffs. Hint... they are probably more about China than Mexico.

• It spends time explaining why the MME is the way it is
• Why GM is going to be little more than the marketing name in North America for SAIC (I am surprised how few people are aware of this)
• yeah, there is some hyperbole in this, but roll your eyes and stick with it.

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[NH_Pony_Boy]

This is really long (~1 hour) but I found it worth the time as it unintentionally provides some perspective on the Mexico tariffs. Hint... they are probably more about China than Mexico.

• It spends time explaining why the MME is the way it is
• Why GM is going to be little more than the marketing name in North America for SAIC (I am surprised how few people are aware of this)
• yeah, there is some hyperbole in this, but roll your eyes and stick with it.

I'm scared to watch, I might be a flat earther in a week. Damn those YouTube algorithms.

 

[Snakebitten]

That video is way too complimentary of Ford for this crowd. ?

 

[cj_Jr]

Once again, nailed it. Obviously we shouldn’t even try. Just too hard.

The point is that it IS hard. It would take lots of work to figure out how to do it without hurting American consumers. Fact is, NO ONE IS DOING THAT WORK. These are "shoot-from-the-hip" tariffs that everyone who voted for him seem to love. Without planning for the many possible eventualities, these tariffs will hurt American consumers. Stop patronizing the folks having a legit conversation here. You're not adding anything constructive.

 

[Jimrpa]

This is really long (~1 hour) but I found it worth the time as it unintentionally provides some perspective on the Mexico tariffs. Hint... they are probably more about China than Mexico.

• It spends time explaining why the MME is the way it is
• Why GM is going to be little more than the marketing name in North America for SAIC (I am surprised how few people are aware of this)
• yeah, there is some hyperbole in this, but roll your eyes and stick with it.

“… I love driving and reading on them.”? WTF. I hate this AI generated crap with all stock or general use license imagery ?

 

[highland58]

It would seem that Mary Barra is following the Boeing management path - stockholder value, hiding changes, denial, and so on as spelled out in Downfall: The Case Against Boeing. Hopefully GM will wake up...

 

[MonkeyNutz]

I'm scared to watch, I might be a flat earther in a week. Damn those YouTube algorithms.

Look at it this way. On a flat Earth, the EPA range estimates for EVs would start to make a whole lot more sense.

 

[Ford_orr]

Guess the ridiculous tariffs aren't theoretical anymore. Bu-bye economy.

 

[StevenC56]

Just told my dealer to cancel my order if the price goes up.

 

[Sikkun]

I know I’m personally losing money. Not lucky enough to be in that .001% wealth group that always wins.

But I assure you, if I ever was in that wealth group I would be using my 50 million dollar yacht instead of trying to rule the world.

 

[Mr Breeze]

Let us try and do a thought exercise without involving politics.
Just an addressing of the facts.
The 25% tariffs on Mexico and Canada are going in effect on March 4th.
The Mach-E is built in Mexico so I assume that makes the whole vehicle subject to a 25% price increase.
Even cars built in the US have parts from both countries which would increase the price considerably.
If you have a car ordered from the factory, and it hasn't crossed the border yet, I think it is possible that Ford will not deliver that car as they cannot swallow the 25% price increase.
Is it possible the car makers will just not build new cars until the tariffs are rescinded?
That seems unlikely but it might be cheaper to shut down factories rather than build cars that you cannot sell because they are 25% more expensive than a Toyota.
What happens to the economy if the American automakers stop production and layoff tens of thousands of workers?
Seems like there is no good outlook on this.
On the upside this will increase the value of our used cars (but replacing it will be more expensive unless you buyJapanese).

There is no upside its a shitshow

 

[Jimrpa]

I know I’m personally losing money. Not lucky enough to be in that .001% wealth group that always wins.

But I assure you, if I ever was in that wealth group I would be using my 50 million dollar yacht instead of trying to rule the world.

$50M doesn’t buy you much of a yacht in today’s market ? It might get you a lower-end tender for a REAL yacht ?

 

[ced0412]

Let's not forget about the aluminum and steel tariffs coming in April to pile on to the absolute stupidity

 

[Sikkun]

$50M doesn’t buy you much of a yacht in today’s market ? It might get you a lower-end tender for a REAL yacht ?

Guess I can have the 50m yacht sail me to the 500m yacht!

 

[Jimrpa]

Guess I can have the 50m yacht sail me to the 500m yacht!

Actually, that’s what Bezos does. He literally uses a super-yacht sized vessel (I believe it’s over 400’) as a “support vessel” for his primary yacht (I believe his current side piece is a licensed helicopter pilot and they use the support vessel to carry aircraft).

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