Twelve countries, including the United States, reached an agreement Monday on an historic trade agreement that could economically tie together more than 400 million people in Asian Pacific and American countries. The pact would cover trade for wide ranging products, from rice to pharmaceutical drugs to cars.
The Trans-Pacific Partnership, which negotiators have been working on for eight years, would thaw trade relations among countries included in the regional zone, including Japan and the United States. For automakers in both countries, the tentative deal includes provisions for Japanese automakers to (eventually) bring light-duty trucks to the U.S. For American automakers, part of the proposed agreement included a side deal between America and Japan to allow access for U.S. automakers to traditionally closed Japanese markets.
The agreement faces an uphill battle to get congressional approval; House Republicans and presidential candidates already have roundly dismissed the deal.
Like many of the people who write to you, I am having trouble deciding if I should keep my current car or trade it in for a new one.
I currently own a 2010 Honda Civic EX-L with 140,000 miles. It has been the single most reliable car I have ever owned. I keep it meticulously maintained and generally change its oil every 6 to 8 weeks. Otherwise, I have only paid for a set of brakes and new tires.
A week ago, I test drove a brand new Honda Accord Touring and fell in love. The dealership has offered me an excellent deal that includes trading in my Civic. My dilemma is that I feel an allegiance to the Civic. The car has the soul of a toaster and is not exciting to drive, but like a trusty horse, it gets me everywhere I want to go without any complaints. The Civic will eventually need repairs as it approaches 200K but I feel like I would be letting it down by trading it away. On the other hand, I can easily afford the payments for the Accord, but I generally try to avoid debt.
What should I do Sajeev? Should I cut the Civic loose and replace it or keep on driving until she can carry me no more?
I live in Brooklyn and I have a 2011 Prius that I still owe about $10k on. Before mocking my choice of personal transportation, remember that driving dynamics mean next to nothing when you live in a place where it’s hard to go above 40 MPH at any given time and the roads resemble 1990’s Kosovo. That said, my best friend is the service manager at a Volvo dealership and she just received a 1993 Volvo 940 wagon on trade. (Read More…)
After getting lost in the maze of hallways numerous times, I finally found the door I was looking for. I knocked and it swung open sharply. Larry stood there with a devilish grin on his face, the kind he got when he was really proud of something. I could see a still from his work on the enormous screen behind him. A famous actor stood next to a luxury sedan, pointing at it with a smirk. Before I could say anything, Larry grabbed me by my collar and pulled me into his lair.
We sat down amongst the plethora of expensive video editing equipment in the small, dark room. He grabbed the burrito out of my hand and tore into it with ravenous force.
“So what did you bring me here to see? I know it’s gotta be something special. You usually don’t care about commercials.” He gulped down his mouthful of food, then began to explain.
“It’s brilliant. This is, like, the nuclear option of car ads. You know that a lot of luxury cars aren’t made in developed countries anymore?” (Read More…)
As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.
Some folks still desperately stick to the fairy tale that the Japanese car market is closed. The same people became excited when European carmakers complained about different Japanese technical regulations – something that was sold as “proof” for Japan walling up its market against foreign imports. The same people claim the U.S. market is open wider than the happy hooker. Not if you ask European carmakers again. Said the European carmaker association ACEA: (Read More…)
While Japan may be a “closed market” in the eyes of some, imported cars from America are all the rage in South Korea. Honda is planning on sending no fewer than six American-made cars; the Civic, Accord, Odyssey, CR-V, Crosstour and Pilot will all be sent to South Korea as Honda attempts to become a net exporter of American made vehicles.
Now here is something that is rarely heard these days. A top EU Commissioner told European automakers to get out of the way of European trade deals with Asia. Europe’s carmakers must reform their industry and cannot place the blame for falling sales on foreign trade, Reuters reports. (Read More…)
Still, China only imports $1.1b worth of vehicles in this category, whereas the US imported some $1.8b worth of Chinese tires prior to the Obama tariffs. Like most of the news around Chinese-American relations, this is more saber-rattling than substance. But with economic conditions still shaky in the US, and a Presidential election getting into full swing, small spats can escalate into larger confrontations. And with China surpassing the US as the largest market for cars in the world, it’s probably no coincidence that this simmering conflict largely involves cars and car-related products.
With a 35% import tax on new cars, Argentina is already a touch market for foreign brands seeking to bring cars into the country. But the Argentinean government has just made it little bit harder by demanding that importers export an equal amount of Argentina-made goods for every car imported. As a result, Bloomberg reports that Porsche’s importer is exporting Malbec wines and olives, Mitsubishi’s importer is getting into the peanut export game, and Subaru’s representative is shipping chicken feed to Chile. BMW, which has had recent difficulties importing into Argentina, is focusing on its core business, exporting auto parts and upholstery… and a little processed rice to make up the difference. But why are these major manufacturers getting into all kinds of strange side businesses just because Argentina wants to improve its trade balance and foreign currency reserves? Simple: Argentina is South America’s second-largest economy, and it’s been growing at over 5% per year since 2007 (i.e. when other markets were shrinking). So if the government wants imports balanced with exports, well, Porsche’s importer is just going to have to get into the wine business, isn’t he?