Automakers rise on report of China moving to cut U.S. car tariffs

https://www.reuters.com/article/us-usa-trade-china-autos-idUSKBN1OA1AC

Trump wins again

 

So much winning

 

Win again? You're funny. Even if the tariff was 0% no more US cars would be sold in China than there are now.

Lonk from April:
From January to October last year, Ford sold 939,000 cars in China, but only 2% of those were imported, according to the company's most recent report on China.

China often says it will cooperate on trade. And then doesn't
Chinese officials said last fall they would lower auto tariffs, but they provided no time line. Xi didn't provide any timing either on Tuesday.

Xi's appeasing comments also stand in contrast to rhetoric from China's Foreign Ministry, which on Monday said trade talks with the United States would be impossible "under current circumstances." Between Monday and Tuesday, neither nation changed its proposed trade tariffs.

https://money.cnn.com/2018/04/10/news/economy/china-cars-tariffs/index.html

 

auto tariff in china was 20% before the tariff war, they change to 40% after the tariff with US, now they just say they reduce tariff to 15% !!! . woot 5% decrease I guess even a small win trump will say a big win. btw what happen to trump crack down on china IP theft and transfer of tech? and 0% tariff?

 

Not enough

But far more than America would have gotten under jeb bush or hillary

 

Rise? You mean like bread?

 

To the extent GM and Ford depend on foreign production of parts and cars that they want to sell in America then their stoke price should fall

Profits for GM only matter to investers or to GM workers

Once a worker is fired then it only matters to to top 1%

 

I am no fan of Trump in fact about as anti Trump as they come. That said, there are way more factors at play, regarding GM & Ford's individual stock prices, than China. China is but one part of a larger, and ever evolving puzzle.

 

GM also affect many manufacture in the supply chain. remember Delphi went belly up after GM didn't do so well about decades ago. Delphi layoff thousands worker in ohio alone, + more in other state.

 

If Delphi is buying or building parts in china then its as big offender as GM itself

 

I'm curious when will be announced what Trump in return gives the Chinese ... or seriously anyone believes that the Chinese collapse without getting something in return?

On the other hand ... I know that many Americans still believe the tale that Kennedy won the Cuba Crisis without giving anything to the Russians and the Russians simply were buckling when they withdrew the missiles! So who knows ...

 

You are a german

so that means you know everything about everything

Or at least think you do

So ypu tell us

 

Delphi barely exists. Delphi still has a major office building location in Troy, MI, housing administration, engineering, sales, and other functions, but, now known as Delphi Technologies, concentrating on powertrain and aftermarket related businesses, are headquartered in London, Great Britain, and supplies automakers all over the world. What was leftover from those businesses is now known as Aptiv PLC, is headquartered in Dublin, Ireland, and is involved in mostly vehicle electrical components and AI/smart car technologies. they also supply automakers world wide, and buy, engineer and manufacturer components worldwide.

The completely unrealistic opinion, is that companies can, or should, concentrate on supplying American auto production with American sourced parts only. You cannot run the auto business like that any more. Are are built all over the world, even when they're finessed for a certain location, by building them with certain tail light/head light combinations, or making them right hand drive for certain markets. In some cases, plants in certain countries are the sole source for a particular model, worldwide. BMW's plant in South Carolina, until Trump's tariffs totally screw things up, is the sole worldwide source for BMW SUV's. Daimler's plant in Georgia is the sole world wide source for Mercedes SUV's and a Mercedes minivan that isn't even sold in North America at all. I know Ford pretty well. One of their plants in Ontario, Canada is the sole source for the Ford Edge. 100% of the metal stampings - both exterior body panels and the chassis and other less visible parts, are stamped across the boarder in Buffalo, NY, and 100% of the transmissions come from the Detroit, MI area, and the V-6 engines come from Ohio. That's the way the auto business runs, and nothing the Trump administration does is going to change it, not for the better

 

Why not?

If auto parts are made in the US then no company will have a competative advantage

 

Delphi layoff was in 2009-2010 era due to GM and overall lack of low demand in US market for autos, it has nothing to do with china, it was due to 2008 recession. Back then china don't purchase that many auto from US as right now.

 

same can be said when you substitute US with China. your idea is everything made in US, the problem is GM/Ford/Apple are global company, they NEED market globally to survive not just in US. if we put tariff, then china, EU, and other can also put tariff. that mean less competitiveness for US company, which will eventually mean less R&D, means less quality product, it will be the end of them. we already seen stock reaction due to tariff. if all the economist saying tariff are bad, who are you to say tariff are good?

 

Sales rebounded but the workers were not brought back because GM is morphing into a foreign company that manufactures in mexico and china now

**** them

And slap a tariff on every part they bring in

 

No one is stopping GM from defecting to china and becoming a captured brand of beijing

But they want to cut American workers out of the production chain entirely but still sell in the US market

Screw them

the traitors

 

Exactly what I was thinking.

 

No, they don't. That's just absurd vs. They are global company, who sell the same car, in many different markets, and in very few of those markets, do they sell enough to justify building it in that country, for sale alone in that country. That's now true for probably 80% of All Brands sold around the world. What you are proposing worked when GM, Ford, and Chrysler, had more than three-quarters of the American market, and that included Canada. That doesn't work anymore. Unless, you somehow propose away to throw all the foreign manufacturers out of the US.

 

Not true. The biggest impediment to any manufacturers selling in China is not the Chinese government. It's the ability, or inability, of the manufacturers to meet Chinese tastes.

I'll give you an example: that new car smell, that Americans, Canadians, and almost everyone else around the world, love? The Chinese hate that smell with a passion. Sometime in the last two to five weeks, Ford Motor Company filed for a patent on a process that eliminates that smell completely, for the explicit purpose of applying that process two cars being exported to China. Right now, for several Lincoln models, and the Ford Mustang, that they do export to China, they are leaving the docks on the West Coast, heading for China, with bags of activated charcoal under both front seats, to try to reduce that smell as much as possible before it gets to China. It's not tariffs that are slowing down anyone's sales to the Chinese market. It's trying to appeal to Chinese tastes in automobiles.

 

What do you mean "not true"? It is most certainly true. It was exactly what I was thinking.

 

You wrote that it's not true but seem to be agreeing with us in that it is not the tariffs that are hindering sales. Basically, a Chinese will buy an American car because he/she wants an American car and is willing to spend more on an American car probably for prestige reasons even though a Chinese made car could be bought for a much lower price for identical spec

 

By Keith Bradsher

• May 22, 2018

阅读简体中文版閱讀繁體中文版
HONG KONG — China has carried out a pledge to cut tariffs on imported cars and car parts, the latest move by Beijing to ease trade tensions with the United States. The American auto industry and its workers, however, might be unimpressed.

China’s Finance Ministry said on Tuesday that it would trim tariffs on imported cars to 15 percent of their wholesale value, from 25 percent. It also cut tariffs on imported car parts, reducing them to a standardized 6 percent. Chinese tariffs on parts currently range from 6 percent to 25 percent, depending on the category, and average about 10 percent.

The moves are intended to address longstanding complaints from the Trump administration and global automakers that China’s tariffs on imported cars are much too high. Those tariffs are one reason — though by no means the only reason — that global automakers like Ford, General Motors, Toyota and Volkswagen have built enormous factories in China over the past two decades. Those factories, built and run with Chinese joint venture partners, have helped make China by far the world’s largest automaker.

Chinese tariffs will still be relatively high, however, and the change is unlikely to motivate automakers to shift production away from China. The United States has a tariff of 2.5 percent on cars, minivans and sport utility vehicles, for example, although it has a 25 percent tariff on imported pickup trucks. Global automakers have also grown comfortable making cars in China, where sales have boomed.

 

Precisely.