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#299111 - 02/28/17 05:37 PM Trump's push for American-made could disrupt NAFTA supply chains, hike consumer
Golem Offline
enthusiast

Registered: 03/12/12
Posts: 3488
Loc: Orange County, California, USA
Trump's push for American-made could disrupt NAFTA supply chains, hike consumer prices

Don Lee
Los Angeles Times
February 28, 2017

Quote:
Shopping for a new set of wheels at a Chevy dealership recently, Patrick Spradlin had a few priorities: a good commuter car, room for his family of five, low maintenance costs and no more than $20,000.

About the last thing on his mind was where such a vehicle and each of its components — whether engine, car seats or spark plugs — were made. “That’s not a make-or-break issue,” said the 38-year-old systems engineer from Whaleyville, Md.

But such details about the origin of car parts and hundreds of other products may soon take on greater importance under the Trump administration, potentially translating into significant costs for consumers like Spradlin.

The issue, known in trade jargon as rules of origin, figures to be a major bone of contention as President Trump undertakes his promise to radically overhaul the North American Free Trade Agreement.

The 23-year-old pact is mind-numbingly complicated in its details. But what it boils down to is a system that allows the U.S., Canada and Mexico to trade hundreds of billions of dollars of goods with each other without having to pay duties.

On motor vehicles, there is a provision allowing duty-free imports and exports so long as at least 62.5% of the value of a vehicle originates in one or more of the three nations. Trump’s trade team is looking to raise that percentage significantly, on the theory that it will boost domestic production and jobs by preventing manufacturers from bringing in more components from Asia and other countries outside North America.

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#299119 - 02/28/17 08:13 PM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
pondering_it_all Offline
old hand

Registered: 02/27/06
Posts: 6600
Loc: North San Diego County
So it's a very complex problem and all Trump can wrap his head around is a 20% tax on imports from Mexico. Of course the next level of "solution" is to up the percentage of parts in a car that have to come from North America, which will only push more production from Asia to Mexico!

Sounds like Trump needs to back off and find some actual experts to craft a solution that will deliver the desired result. If that is possible.

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#299122 - 02/28/17 09:40 PM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
Golem Offline
enthusiast

Registered: 03/12/12
Posts: 3488
Loc: Orange County, California, USA
Needless to say, pro-Trump extremists are all for this. Of course, if Trump were pro-NAFTA they'd be pro-NAFTA too.

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#299126 - 03/01/17 04:22 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
Jeffery J. Haas Offline


Pooh-Bah

Registered: 08/03/04
Posts: 12448
Loc: Whittier, California
Less than twenty thousand dollars? A new car? In 2017?
Sorry but I sure would like to have some of what this writer is smoking.
Twenty grand these days is two grand in real terms, and there are no two thousand dollar cars and haven't been any for some time.
And back when I was a kid, a VW BUG was a two thousand dollar car.
It was advertised at $1995.00
He better get used to the fact that his choices are limited to some of the many fine USED twenty thousand dollar cars floating around, because a decent NEW CAR in the USA in 2017 starts at around 25 thousand AND GOES SHARPLY UP from there unless he limits his choices to an econobox.
A car that accomodates a family of FIVE is considered a full size or larger midsize family sedan. The 2017 Chevrolet Impala lists for $27,500 for the base model and goes to 34 thousand if you want it loaded.
Under twenty grand he can get a Chevy Cruze, and it will squeeze his brood in with barely enough space for the baby seats in back.

And his fortunes won't be much better with a foreign make either.
Twenty grand does not get you much when exclusively shopping for a brand new car.
It barely got you much back in the early 2000's for that matter.
_________________________
The men the American public admire most extravagantly are the most daring liars; the men they detest most violently are those who try to tell them the truth. - H. L. Mencken

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#299128 - 03/01/17 08:04 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
pdx rick Offline
Member
Carpal Tunnel

Registered: 05/09/05
Posts: 40132
Loc: Puget Sound, WA
Quote:
Trump's push for American-made could disrupt NAFTA supply chains, hike consumer prices

No one with an IQ over room temperature has ever claimed that Trump was a smart businessman. coffee
_________________________
Contrarian, extraordinaire



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#299129 - 03/01/17 08:05 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Jeffery J. Haas]
pdx rick Offline
Member
Carpal Tunnel

Registered: 05/09/05
Posts: 40132
Loc: Puget Sound, WA
Originally Posted By: Jeffery J. Haas
Less than twenty thousand dollars? A new car? In 2017?

The cars are called KIAs. Hmm

2017 KIA Rio MSRP $16,390 smile
_________________________
Contrarian, extraordinaire



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#299146 - 03/02/17 02:24 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
pondering_it_all Offline
old hand

Registered: 02/27/06
Posts: 6600
Loc: North San Diego County
Chevy cruise
Nissan sentra
Dodge dart
Ford focus
Mitsubishi Lancer
Mazda 3
Subaru Impreza
Honda Civic
Fiat 500 Turbo
Hyundai Tucson

All less than $20,000 new if you are willing to buy the 2016 model, but it is much more sensible to buy a car with 50,000 miles on it. That's something rich people do: Let the status seekers lease it for two years and then buy it used.

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#299150 - 03/02/17 06:00 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: pdx rick]
Jeffery J. Haas Offline


Pooh-Bah

Registered: 08/03/04
Posts: 12448
Loc: Whittier, California
Originally Posted By: pdx rick
Originally Posted By: Jeffery J. Haas
Less than twenty thousand dollars? A new car? In 2017?

The cars are called KIAs. Hmm

2017 KIA Rio MSRP $16,390 smile


Fitting a family of FIVE into a 75 horsepower Kia Rio, I suppose it is possible but it is not practical.
So my story still stands. A family of five requires a mid size or full size sedan.
Of course it's possible to shoehorn that many into a tiny econobox. People do it all the time, but that's far from ideal.
_________________________
The men the American public admire most extravagantly are the most daring liars; the men they detest most violently are those who try to tell them the truth. - H. L. Mencken

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#299151 - 03/02/17 06:02 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: pondering_it_all]
Jeffery J. Haas Offline


Pooh-Bah

Registered: 08/03/04
Posts: 12448
Loc: Whittier, California
Originally Posted By: pondering_it_all
Chevy cruise
Nissan sentra
Dodge dart
Ford focus
Mitsubishi Lancer
Mazda 3
Subaru Impreza
Honda Civic
Fiat 500 Turbo
Hyundai Tucson

All less than $20,000 new if you are willing to buy the 2016 model, but it is much more sensible to buy a car with 50,000 miles on it. That's something rich people do: Let the status seekers lease it for two years and then buy it used.


If we are going to expand the criteria all kind of vehicles become available but the point of the article is that a man with a family of five seeks a 2017 automobile, a large midsize or full size automobile, to accommodate them, for under twenty thousand.
_________________________
The men the American public admire most extravagantly are the most daring liars; the men they detest most violently are those who try to tell them the truth. - H. L. Mencken

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#299152 - 03/02/17 06:08 AM Re: Trump's push for American-made could disrupt NAFTA supply chains, hike consumer [Re: Golem]
Jeffery J. Haas Offline


Pooh-Bah

Registered: 08/03/04
Posts: 12448
Loc: Whittier, California
I pulled into the gas station to get morning goodies for Karen and myself, and saw a gorgeous souped up hot rodded Honda Accord.
I'm not even a fan of Japanese "tuner cars" but I have to say, she was a beauty. Very classy, very tastefully done.
If I had to venture a guess I would have to say the owner probably sank at LEAST 60 or 70 thousand dollars into this little racer, and I wager she's probably very fast.
But when he started his little dreamboat up about two minutes later, my reverie was shattered by what sounded like an orangutan with a bad case of explosive diarrhea.
Buddy, I don't know who designed and tuned your exhaust system, or recommended that five inch diameter "fart can" exhaust tip on the back, but the moment you started that car up, people looked around for ANYTHING BUT a race car.
I honestly thought someone or some-THING in the store ripped a monster greenie that came from such depths in their gut that entrails would soon follow.
I tried to facepalm to conceal my morbid laughter but everyone heard me. A few nodded, as if to say "WTAF was THAT?"

Just thought I'd share, because some of the sweetest looking little foreign race cars sound atrocious when you floor it.

I just heard a TV commercial for the new Maserati Ghibli, which is the entry level model for those wishing to "learn Italian" car speak. Funny thing is, the Maserati actually uses a gussied up version of a Chrysler Pentastar V-6 with twin turbos to get its 420 horsepower, okay?
Now, I have actually HEARD the older Pentastar type V-6 in OUR Dodge Caravan with the headers uncorked once, and it had a somewhat dignified burble which swelled to a decent roar if you fed it the beans.
But for some reason, that Maserati sounds all wrong, despite packing way more than double the power of our lowly grocery getter! It too, suffers from the rectal distress style exhaust note syndrome!
Prices for the Ghibli start at $72,500 according to the ad.
I would never pay 72 large for something that sounds like that!
An Italian sports car HAS to sound ORGASMIC.

Just check out the driving scenes from The Graduate (1967) starring Dustin Hoffman and Anne Bancroft and one delicious sounding Alfa Romeo Spider.

_________________________
The men the American public admire most extravagantly are the most daring liars; the men they detest most violently are those who try to tell them the truth. - H. L. Mencken

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