Mexico comes to the table

a reply to: TheRedneck

Guy...........have you thought this through?

www.bloomberg.com...

I honestly don't have time to explain it but this is a disaster. US car makers have this day lost $18 Billion in market value. Where do you think the parts and the cars are made? Mexico!

Automakers around the globe, from General Motors Co. to Toyota Motor Corp. to Daimler AG, lost billions of dollars in combined market value in a stock sell-off Friday because they rely so heavily on Mexican factories to supply the U.S. market. Constellation Brands Inc., which imports Corona beer from Mexico to the U.S., fell 7% in New York trading. Kansas City Southern, the railroad that counts on cross-border traffic for about 40% of its freight volume, fell 5.2%.

All Obrador can do to placate Trump is make some noise about bolstering Mexico's Southern border with Guatamala and Honduras to try to stop the migrants, but in reality..............Obrador can't stop the migrants short of setting up mine fields and machine gun posts. So this Trump tarriff is going to hurt the US economy PLENTY and there won't be any significant change in the migration problem. This is how you get to recession.

a reply to: TonyS

Is mexico going to pay the tariffs, no. Manufacturers, nope.

So that leaves us with consumers.

a reply to: TonyS

Back in the 80s there was an uproar to "Spend your money where you earn it"
go to Japan, people there buy goods made in Japan, the only American vehicles there have consular plates

originally posted by: TonyS
a reply to: JAY1980

That's just a a remarkably uniformed comment. US Auto makers lost $18 Billion in value today because of this. Most all US car makers source parts in Mexico, and many cars sold in the US are built in Mexico. And the parts supply situation is using that "just in time" sourcing so the US plants will run out of parts in 3 days when the trucks get stacked up at the border because of the tarriff's. Car and Truck prices will necessarily increase and as the situation worsens, US production plants will close.



This is nothing short of a disaster.

And the sky will fall too!

Mexico comes to the table!

I hope they wash their hands first

a reply to: CriticalStinker

Not this consumer............got my slightly used Toyota truck in August, 2018.

Now I'm busy covering it with a tarp to hide it from the theives. Worse, I live only 60 miles from the damned Mexico border. Things could get really dicey here.

a reply to: CriticalStinker

Production will move to this side of the border if the tariff situation becomes untenable.

Mexico isn't stupid. They've been watching the situation with China and they know they can't win if China doesn't stand a chance.

a reply to: projectvxn

They'll have to raise Tariffs more than 5% to make that change feasible.

a reply to: TonyS

Perfect example of why my newest car purchase was an Indiana built toyota.

American automakers can stick their imports.

a reply to: CriticalStinker

That's true. I don't think it will get to that point.

I view this as a negotiation tactic. It seems to be working so far.

a reply to: Bluntone22

Yea except...............the Toyota made in Indiana, (is that really true? there's a plant there?) is probably have Mexico parts. You know, the truth of the matter is that these car factories in the US don't really make anything; they're just assembly plants; they assemble cars from parts outsourced all around the world. I bought the wife a Ford Contour years ago, nice car when it ran. The engine was made in UK and the tranny was made in Canada. The fuel system was German. It was a mess! I finally gave up on it when a Ford Dealer mechanic told me that he was sick of working on them because no two Contour's had the same parts put together the same way.

originally posted by: Bluntone22
a reply to: TonyS

Perfect example of why my newest car purchase was an Indiana b̶u̶i̶l̶t̶ assembled toyota.

American automakers can stick their imports.

Fixed that for you.

The dissolving of the factory Midwest lead to parts being made outside the US. The Detroit car exodus meant the same for all the parts manufactures.

While I'd be impressed if we can revert back to our former glory in that industry, I don't think taxing citizens is the way to go. I'd rather see focus on pressure towards US corporations to give incentive to bring back production to our soil.

a reply to: CriticalStinker

My last car was a ford fusion.
87% imported parts and assembled in mexico.

Say what you want but I know my Toyota is more American made than my ford was.

a reply to: projectvxn

What do you call the fact they don’t just go after the employers here and fix the problem at the root, of not aiding illegal immigration?

originally posted by: Bluntone22
a reply to: CriticalStinker

My last car was a ford fusion.
87% imported parts and assembled in mexico.

Say what you want but I know my Toyota is more American made than my ford was.

You're right, and that's a trend for companies who make Trucks and SUV's as America is one of the bigger markets for those vehicles.

My question surrounding this whole issue, do we even want to put focus on trying to revive that industry? Do we want a fair percentage of our population doing semi-skilled factory labor to make more expensive goods than developing countries, or do we want to put more focus on newer jobs/industries and have them make more money?

Either way, as I pointed out before, I think this is the wrong way to go about it either way. It's a tax on Americans, and not just with vehicles, but with food as well.

a reply to: CriticalStinker

Did you just reference a taco tax?
Tacos are food.

I'd rather see focus on pressure towards US corporations to give incentive to bring back production to our soil.

That is not how it works. They get a tax break with no concession just because they exist.

originally posted by: TonyS
a reply to: Bluntone22

Yea except...............the Toyota made in Indiana, (is that really true? there's a plant there?) is probably have Mexico parts. You know, the truth of the matter is that these car factories in the US don't really make anything; they're just assembly plants; they assemble cars from parts outsourced all around the world. I bought the wife a Ford Contour years ago, nice car when it ran. The engine was made in UK and the tranny was made in Canada. The fuel system was German. It was a mess! I finally gave up on it when a Ford Dealer mechanic told me that he was sick of working on them because no two Contour's had the same parts put together the same way.

You don't know much about import plants in America, I take it.

Let's look at Honda of America.

12 manufacturing plants in the USA, 31,000 employees.

What did they spend IN America last year?

Honda purchased $29.3 billion parts and materials, $10.1 billion in goods and services, and $1.4 billion in service parts from U.S. companies last year.

That's just Honda... Toyota and others have irons in the fire here as well.

So no offense to Mexico, but Mexican-made parts suck.

Always have.

We can live without them.

a reply to: TonyS

There are surprisingly a bunch of Japanese automakers building parts in America.

I recently did some work for nisco.
They make rubber seals for doors and hoods, etc.
When I was there they were getting ready to build parts for Chrysler.

Nisco is owned by "nishikawa cooper"

Its amazing who owns what and where.

a reply to: Lumenari

You are exactly right.
Japan is investing lots of money in America.