America's Car Capital Will Soon Be ... Mexico

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I found this section interesting: "VW’s luxury unit, Audi, considered the U.S. when it was deciding where to build the hot-selling Q5 sport utility in North America, says Bernd Martens, the company’s board member for procurement. Mexico had a $500-per-car labor cost advantage, but that was offset by higher transportation costs. The clincher was Mexico’s trade policy. Specifically, the U.S. lacks trade agreements with Japan, the European Union and Brazil. Added tariffs mean a car exported from Tennessee to Brazil costs 55% more than one exported from Mexico." Even though there is a labor cost savings it is eaten up by the logistics cost. However, they get to export their cars to other countries with less tariff cost.
 
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PA
Originally Posted By: grampi
Friggin outsourcing!
With a 35+% corporate tax in the US, you would outsource also....
 
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Originally Posted By: wsar10
Originally Posted By: grampi
Friggin outsourcing!
With a 35+% corporate tax in the US, you would outsource also....
When will the US government learn that the highest corporate tax in the world will continue to move corporate headquarters out of the this country. Lower the corporate tax and you'll see companies moving back and staying here which will create jobs and not lose them. It only makes sense.
 
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Wisconsin USA
Originally Posted By: Nate1979
Specifically, the U.S. lacks trade agreements with Japan, the European Union and Brazil. Added tariffs mean a car exported from Tennessee to Brazil costs 55% more than one exported from Mexico." Even though there is a labor cost savings it is eaten up by the logistics cost. However, they get to export their cars to other countries with less tariff cost.
This.
 

JHZR2

Staff member
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Originally Posted By: R80RS
Originally Posted By: Nate1979
Specifically, the U.S. lacks trade agreements with Japan, the European Union and Brazil. Added tariffs mean a car exported from Tennessee to Brazil costs 55% more than one exported from Mexico." Even though there is a labor cost savings it is eaten up by the logistics cost. However, they get to export their cars to other countries with less tariff cost.
This.
And apparently the two posters above failed to read this to understand the reasoning. Still, not my issue what the cost of the product is in Brazil. Ill buy autos mande in Japan/Germany/USA only.
 

ls1mike

$50 Site Donor 2021
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Originally Posted By: JHZR2
Still, not my issue what the cost of the product is in Brazil. Ill buy autos mande in Japan/Germany/USA only.
I don't know I like the Canadian ones too...Spoken Trans Am and Equinox. smile
 
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Virginia
Originally Posted By: Hokiefyd
Yeah, Canadians are okay, said our MDX. smile Our Honda is a Buckeye, driven by a Hokie, surrounded by Wolfpack red and Tar Heel blue.
Our Highlander is a Cavalier (yuck) driven by a Hokie.
 
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Virginia
Originally Posted By: leeharvey418
When did Toyota start making Highlanders in Virginia? Or did you mean it's a Hoosier?
Sorry, should have said it's owned by a Cavalier (fiance).
 
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My car was assembled in Canada (Brampton, ON). The truck in Fort Wayne, IN. It's so sad to see good paying American jobs go to Mexico and other low wage countries. So in the long term, who is going to buy the products they produce? Certainly not the Mexican worker who makes 40 bucks per day. Seems like the rich and privileged are killing the goose that laid the golden egg (the American working man).
 
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