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GoPro To Move US-Bound Camera Production Out of China (reuters.com)

Posted by BeauHD on from the cause-and-effect dept.

In an effort to counter the potential impact from new tariffs, GoPro is moving most of its U.S.-bound camera production out of China by the summer of 2019. The company said international-bound camera production will remain in China. Reuters reports: The company had previously said it was being "very proactive" about the situation regarding tariffs as U.S. and China ramped up its bitter trade war, in which both nations have imposed tariffs on hundreds of billions of dollars of each other's imports. "It's important to note that we own our own production equipment while our manufacturing partner provides the facilities, so we expect to make this move at a relatively low cost," said Chief Financial Officer Brian McGee. In the company's earnings call in November, GoPro said it had the option to move U.S.-bound production out of China in the first half of 2019, if necessary.

9 of 91 comments (clear)

  1. Sure they can move it out of China by frank_adrian314159 · · Score: 3, Insightful

    They'll move it straight to Mexico - the labor's still cheap enough there and, because of our shiny, brand new "trade agreement" with Mexico, there are no nasty Trump tariffs to contend with there..#MAGA!

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    That is all.
    1. Re:Sure they can move it out of China by joelgrimes · · Score: 4, Insightful

      If companies learn not to make China their sole supplier of all things then it goes in the win column.

      Lack of diversity in our supply chain was making us vulnerable

      --
      Textbooks and Open Educational Resources
    2. Re:Sure they can move it out of China by ChromeAeonuim · · Score: 2

      Moving production to Mexico would be great. Mexico is a free, democratic, reasonably friendly country. Yes, they've got their share of problems (several of which they can thank the US for given that our war on drugs is what fueled their cartels), but until such time as the ruling party of China makes some major reforms, I would much rather my money be going to Mexico than to the dystopia that China is building.

      Besides, economic opportunity for Mexico is the best way to ease the border issues....I don't see any Canadians trying to immigrate illegally, do you?

    3. Re:Sure they can move it out of China by ShanghaiBill · · Score: 5, Insightful

      Also, a more prosperous Mexico benefits America. A more prosperous China, not so much.

      40% of Mexican imports come from America. 20% of Chinese imports come from America.

      More jobs in Mexico means fewer desperate immigrants to America.

    4. Re:Sure they can move it out of China by fustakrakich · · Score: 2

      More jobs in Mexico means fewer desperate immigrants to America.

      They'll reverse the flow, like the Chicago River

      --
      “He’s not deformed, he’s just drunk!”
  2. FIX THE EFFIN LINK "EDITORS" by OzPeter · · Score: 3, Informative

    The GoPro press release is
    https://investor.gopro.com/pre...

    The link in TFS is for teh old version story

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    I am Slashdot. Are you Slashdot as well?
  3. Re:Well done Mr President by matushorvath · · Score: 4, Insightful

    Notice they are saying "out of China", not "to the US". They will most likely move it to India or Vietnam or Mexico, or somewhere else cheap.

  4. Exactly backwards by raymorris · · Score: 4, Insightful

    It seems like you got a little confused there, or whoever told you was confused. That provision was *removed*. It was in NAFTA 1.0, now it's gone.

    Canada wanted keep it, which is weird because:
    https://www.cbc.ca/news/politi...

    It was removed in the Trump deal except for one special case. Every so often Mexico makes efforts to nationality their oil industry, with the government taking refineries and other infrastructure from the private companies that built them. If Mexico wants to take American-owned oil facilities, the companies can get reimbursed under the chapter 11 process. It's been removed except for oil facilities in Mexico only.

    Whichever source of news / comedian told you the exact opposite, I'd be suspicious of them now. Apparently they are either hard to understand, or pulling your leg.

  5. Re:Well done Mr President by RhettLivingston · · Score: 2

    Exactly. GoPro is not the first. Most who are moving are moving to places like Cambodia and Vietnam. Mexico is nowhere near as cheap or reliable. They will likely look to improve their margins in the move versus what they had in China pre-tariff. Why wouldn't they?

    The affect of all this will be to spread the wealth and thus bring other countries up to the point of us viewing them as a problem. We simply can't stand other countries using our same tactics.

    But, it's too late. Once the countries cross a certain nutritional divide for enough years and no longer has their intelligence hampered by malnutrition in their early years, they will inevitably join the industrial world. Many our lining up to do so now as a result of nutritional improvements in previous decades.