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.
Yes, tariffs are changing the way business is being done. The plants that are closing were supporting foreign markets. The trade war has temporarily closed those markets. However, foreign manufacturers are being closed off from the American markets and will need to increase production here in America. If they do not, then US automakers can fill that void. The consumer has to choose to buy American or pay the increase in foreign manufactured vehicle prices.
Steel plants are opening up here because importing steel has become expensive. Manufacturers (and eventually us consumers) are paying the ramp-up costs. As supply ramps up, cost will eventually go down.
Once manufacturing levels out in favor of the USA, average pay will increase and the costs will level off. It's all one big roller coaster. Focus on the larger picture, not just the hill before you.
If the border does close (including closing off trade), US manufacturers will scramble to find local manufacturing for products. It hurts the US consumer in the short term, but helps the US worker in the long term.
Exactly.
If US companies are finding it harder to export overseas because of foreign tariffs, it will work the other way around too with foreign competitors exporting to the United States. They will either want to strike new deals with the United States or move some of their production to the USA.
The USA has not defended its home market the way that some other countries have and it is going to take some time to sort out.
GM use to employ nearly 90,000 people in Flint, it is now under 9,000.
This twin process of automation and outsourcing coupled with increased foreign competition has been reducing auto jobs for about 4 or 5 decades now.
Yes, Trump made promises he should have known he couldn't keep to get votes. However, if we want to point political fingers at people we could also point out that Obama foolishly didn't make GM undergo significant restructuring during their special bankruptcy and the (democratic) auto workers union has put severe inefficiencies on GM that Toyota doesn't experience.
Last edited by michiganmoon; 11-26-2018 at 11:24 AM..
I dont understand why self drive cars would not need as many workers...they still have to build the cars, the self drive technology is just another part of the car.
I'm not sure, but I think self-driving cars are more apt to be shared vehicles. You get 5 people sharing a car, instead of each of those 5 buying their own car. Thus, demand for new cars will go down as more people use self-driving ones.
Imagine a situation where most people don't own a car and, instead, pay for each ride instead. In that scenario overall demand for autos would go down, because most cars that are produced would be shared vehicles.
Now, I don't think it would actually ever be that extreme, but it doesn't need to in order for overall vehicle demand to trend downwards.
Its an industry that needs drastic and serious change. The business model has been unsustainable for a while, the technology lags behind what it could be, and unfortunately our government kept trying to prop up these short comings. Shakeout and innovation isn't always pretty and it leaves some behind, but in the long run its for the best.
Yes, it is based on sales, and financials, but it seems the current trade policies (trade war) has impacted the overseas sales of US autos (and other goods), so it is linked to politics. The government trying to control the markets is making things worse.
You may be right, however, the current situation (thus far) could only be based on the anticipated future impact, not on ongoing changes already caused by tariffs. I'm likewise, not sure the government is trying to control the U.S. markets ... or the behavior of our international trading partners, who have been giving the U.S. the 'short end of the stick' for years.
Whether ongoing changes make things worse or not remains to be seen. I believe NAFTA changes with Canada and Mexico will benefit the U.S. - and I believe Trump believes Tariff's will change the behavior of China and others.
For the first time in several administrations, we are seeing companies moving offshore operations back to the U.S., major tax incentives for small businesses and significant job growth. I say, let's give things a chance, rather than automatically siding with the nay-sayers.
I just talked to a friend that orks at GM - the cuts are due to the fact that GM as well as Ford and Chrysler are doing away with most of their car line like the Impala, Volt ect… They're keeping the Malibu as far as he knows. Buyers have been buying more trucks and SUVs and are not buying reg sedans. If they want a car - people are buying the Honda, Toyotas and Mazdas which are better cars overall when compared to their American counterparts.
It's also do to mismanagement of money at the top - aka - executives.
This is going to hurt Ohio and Michigan BIG TIME. Trump won Michigan by just 10,000 votes. Not a whole lot of wiggle room there for him.
GM has been harping about the damage tariffs will do to the auto industry.
Could have been just a little campaign to help deflect the blame knowing that GM was in trouble....but you know it just isn't going to sit well with some....especially those swing votes who thought Trump was going to get them all jobs or better jobs.
Auto sales hit record levels in 2016 and are slowing as automakers say they face challenges from both the slowing sales and tariffs on steel and aluminum as part of President Donald Trump's trade war.
Well how many GM vehicles does the US and the world truly need?
1. They need to design and build vehicles that the public really wants and needs. Perhaps more development towards small electric city cars that are affordable.
2. Modern cars and trucks last a long time, not everyone runs out to replace their vehicle for a new one every three years. I myself have never purchased a brand new car. I tend to buy older Honda Civics. My husband and his friends buy used Toyota trucks. A brand new GM vehicle is nowhere on their radar to purchase.
3. Maybe GM needs to find some other goods to build in their factories. Snowblowers? Riding lawnmowers? Solar panels?
And people in our crowded US cities are urged not to own cars and instead use public transportation. GM needs to adapt with the times.
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.
