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Trump Approach on Nafta Relieves Automakers’ Worst Fears

Discussion in 'Too Hot for Swamp Gas' started by OklahomaGator, Aug 31, 2018.

  1. OklahomaGator

    OklahomaGator Jedi Administrator Moderator VIP Member

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    Trump Approach on Nafta Relieves Automakers’ Worst Fears

    One of the fears was that the renegotiation of NAFTA was how it would affect the auto industry. It seems those fears have been put to rest according to the article.
     
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  2. Gatorrick22

    Gatorrick22 GC Hall of Fame

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  3. oragator1

    oragator1 Premium Member

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    The cost of a car is going to go up, is it is a bailout of one sector at the expense of everyone else.
    But that’s pretty much the definition of everything trump has done or said to this point.
     
  4. gatorknights

    gatorknights GC Hall of Fame

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    But I thought the NYT was "fake news"??? :confused:;)
     
  5. BLING

    BLING GC Hall of Fame

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    Cars from Mexico is pretty much a non-issue for most. Who here drives a car that was built in Mexico? I'm guessing almost nobody. I'm OK with slowing some of the plants from moving down there. But I also didn't see it as much of a priority, because for the most part it was only smaller/cheaper cars. Models that might be "going away" because of this proposed deal. Is that a good thing? To remove consumer choice?

    It's not going to really change much. If the premise is "well hey, at least it's not a total disaster", then what was really accomplished? If you read the article they are talking about simply not sending those cars to the U.S. market because they can't afford to produce them in the U.S. (and even the 2.5% punitive tariff might be too much for those models to bear). So essentially, all this will have done is eliminate consumer choice in some low end cases (Ford is apparently really struggling, and were already moving to eliminate "cars" from their lineup, but according to the article Honda may have to consider dropping the HR-V which they consider a successful model...).

    Of course, from what I've read, all of this is really a non-starter (legally) until Canada is on board anyway. I'm actually quite OK with the slight increases in U.S. content requirements for cars built under NAFTA agreement, but I'd like to see it in a way that won't ruin small car production coming out of Mexico. Better to have those options coming out of Mexico than not have them at all IMO.

    I miss the old days when if you were buying a Japanese car, it was built in Japan, or if you were buying a BMW, it would come out of Germany.
     
    Last edited: Sep 1, 2018
  6. VAg8r1

    VAg8r1 GC Hall of Fame

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    Not sure that this is exactly good news. From the original linked article.
     
  7. chemgator

    chemgator GC Hall of Fame

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    The slight increase in the cost of a car will be nothing compared to the price hike when Hillary's 54.5-mpg legislation hits the fan in 2025. Expect either the cost of the average car to go up by $7-10,000, or unethical (read: "bribed") legislators to give "favored" automakers an exemption, like what happened after Bill Clinton hiked car mileage in the 1990's.
     
  8. fastsix

    fastsix Premium Member

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    How is the 54.5 mpg legislation it related to Hillary Clinton? Google doesn't show an obvious (to me at least) connection.
     
  9. chemgator

    chemgator GC Hall of Fame

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    I believe she had taken credit for it during the 2016 election, but with Hillary's propensity to tell tall tales, that could mean any number of things.
     
  10. fastsix

    fastsix Premium Member

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    I can't find a thing about Hillary claiming it's her legislation or taking credit for it. Maybe you'll have better luck and post a link.