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Automakers, Dependent on Mexico, Face a Rougher Road with Trump (reuters.com)
An anonymous reader shares a Reuters report: The election of Donald Trump as U.S. president puts new pressure on automakers and other manufacturers that have become dependent on open trade with Mexico, and raises the risk they will face higher costs. Automakers could also take a hit if instability in financial markets undercuts the confidence of consumers in the United States and other major markets at a time when growth in U.S. auto sales has stalled. Investors sold off U.S. stocks and the dollar in reaction to Trump's unexpected win. Shares in Japanese automakers, which also rely on Mexico as a production hub for the U.S. market, slid as well, underperforming the benchmark Nikkei index, which fell 5 In afternoon Tokyo trade, shares in Toyota Motor Corp were down 6.5 pct, Nissan Motor Co Ltd was down 6.0 pct, while Honda Motor Co fell 7.8 pct. U.S. manufacturing groups and companies on Wednesday said they want to work with the new administration.
There will certainly be a rejigging of trade. It's not fair trade when it becomes a race to the bottom for workers.
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
Tesla is made in America and while they import parts, they are in the process of bringing that all in-house, or least their manufacturing to California.
I prefer the "u" in honour as it seems to be missing these days.
ROFL.
and yet, it is the red states where you see the most slackers and highest level of gov spending.
I prefer the "u" in honour as it seems to be missing these days.
How tone deaf must you be to announce that you're wiping out all small car production in the US and moving it all to Mexico at the height of a campaign that features the most vociferous anti-NAFTA candidate ever? Trump's Michigan win is smaller than the number of employed US citizens Ford is about to discard with that move. If you can think of a more effective way to get the attention of a "Reagan Democrat" please let us know, because I sure can't.
Maw! Fire up the karma burner!
"Investors sold off U.S. stocks and the dollar in reaction to Trump's unexpected win."
I'm assuming this must be foreign investors since the DJIA is up over 1% as of the time of this post.
There are more Trump branded posts on the front page of /. than there are Trump branded buildings...
Trump dot
My eyes reflect the stars and a smile lights up my face.
People were building walls (and bridges) for millenniums. They were not stupid, - our mere existence proves it.
If they had not played profit for a zero sum game with the rest of the people in the world, including Americans, then Trump would not be President and they would not be in the position they're in.
There are lots of ways to divide up the booty an economic success which reward owners over an above workers but don't involve larceny and race to the bottom predation.
There are lots of ways to outsource prosperity to developing nations which don't destabilize the outsourcing nation yet have the long term effect of bringing the standard of living of that developing nation up.
They choose none of them.
perhaps they shouldn't have shut down all their USA based manufacturing plants and fired all the workers?
As long as the population is increasing, if auto sales aren't going up at least proportionately then there are fewer new cars per person, which on the surface implies that on average people are getting poorer. Fortunately, cars last longer now. (Hey! that's not a race to the bottom.)
This point applies to the economy in general. Since a static condition has zero width, for practical purposes if things aren't getting better, then they're getting worse. All you critics of unending growth want humanity to become more miserable. We are orders of magnitude below the point where worldwide, nobody could reasonably want more.
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And by what right do YOU claim the ability to stop them?
Foreign manufacturers have been selling better-value cars in the United States for decades. This left US automakers with only two choices: do manufacturing where costs are lower or be driven out of business.
The primary reason US costs are too high is unions, although government meddling also hurts.
If you want to keep auto manufacturing in the US, there are only 3 ways to do it.
Just becuase "there isnt a single country on earth that doesnt do this." doesn't make it right.
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To do this, we'll need parallel currencies. Maybe something like bitcoin, where everybody gets a certain amount just for living to cover basic needs - housing, car, food et al. The jobs would cover any frills
And by what right do YOU claim the ability to stop them?
Trump hasn't proposed stopping them. He has said over and over, hundreds of times, in public, they're free to go where they wish and pay the tariff we impose when they import.
Prior to 1900 the US government earned most of it's revenue from tariffs. One would think that leftists would have some interest in tariffs as a source of revenue given the hundreds of billions of dollars they might use to buy more votes but, strangely, taxing imports is always off limits. I've always suspected this is because ruining "deplorable" incomes is more important to them.
Anyhow, there are well run and prosperous western nations that limit and restrain trade in all sorts of ways. The poster child of this is Germany, the nation propping up all the PIIGS with its productivity, where employers still train employees and where the industrial base and working class are not being deliberately ruined. Companies, workers and the government can all independently file suit against importers for unfair trade, so the working class and their employers in Germany aren't left to compete with disposable Asians and their unregulated mercantilist employers. Alsa, with prosperity come SJWs and so Germany has self-inflicted an immigrant problem, but their trade policy is proven sound.
If you want to keep auto manufacturing in the US, there are only 3 ways to do it.
Reagan addressed this is the 80's. He, the UAW and Democrats in congress created domestic content laws that require some fraction of value add be domestic labor to avoid tariffs. The result is that there are many foreign auto manufacturers operating plants and employing 'muricans in the US. Reagan also negotiated limits to Japanese motorcycle imports and is credited with saving some domestic manufacturers that are still around today. Not credited by most of our bought-and-paid-for politicians, mind you, just those of us that understand trade history.
Andrew Grove wrote about the importance of the industrial base to the health of an advanced economy. The scum and villainy that actually operate that industry are also really important — as you've just learned in this election — so you might want to figure out how to conduct yourselves without shitting on them at every single opportunity. Either that or take away their franchise so they can't vote.
Maw! Fire up the karma burner!