Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I would not touch anything assembled in Mexico with 10 ft long pole and wearing thick rubber gloves. WORST ever POS I had was assembled there. They must have spit at every part they put into that car.
We will not be able to unilaterally abrogate NAFTA.
Technically you would be correct however there is more than one way to skin a cat. If we start shipping busloads of illegals to Mexico daily it won;t be very long before they will be willing to come to the table. We could pull a Castro and start with all the criminals.
Changes in the trade relationship between the US, Canada, and Mexico will be worked out by negotiators, and only afterward will Congress be involved in ratifying an agreement.
A change in the tax treatment of the accumulated earnings of US companies in the rest of the world, that will let those companies repatriate those assets, will be a far more effective way to get new factories built in the US.
These companies have already paid taxes in those other countries on their earnings, and currently the US hammers them with a very high tax rate; so that money is stashed outside the US, or invested in those other companies, and cumulatively it is at least a trillion dollars that could be invested in the US.
The regulatory environment in the US is a major reason why companies build factories outside our borders. So, changing the tax code and regulations will do more to return jobs to the US, than any negotiated or unilateral change in the terms of trade. And the repeal of Obamacare will encourage employers to hire more workers.
This is a list and number of factories built in the USA just by foreign automakers.
There are reasons why some foreign-based companies build plants in the US, and reasons why some US-based companies build plants outside the US. The regulatory environment in the US is not especially attractive to companies like Toyota and Mercedes, but they view the positives outweighing the negatives. This does not apply to all companies, foreign or domestic.
This is a list and number of factories built in the USA just by foreign automakers.
Toyota - 4 factories in USA
Honda - 4 factories in USA
Nissan - 2 factories in USA
Hyundai - 1 factory in USA
KIA - 1 factory in USA
BMW - 1 factory in USA
Mercedes - 2 factories in USA.
I guess those foreign companies must have "danced" around the "regulations" !
What they danced around is the legacy pension issues the big three have. Even if they are paying the exact same salary and benefits the labor costs are far cheaper for a foreign company. Last estimate I read was $2k per car more for US company. I would imagine this is also one of the reasons the big three are outsourcing.
What they danced around is the legacy pension issues the big three have. Even if they are paying the exact same salary and benefits the labor costs are far cheaper for a foreign company. Last estimate I read was $2k per car more for US company. I would imagine this is also one of the reasons the big three are outsourcing.
One of the biggest costs of manufacturing in the USA is healthcare expense.
The other countries such as Japan or Canada have universal national healthcare. They do not directly penalize the auto companies.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
