Is North America the New China?
When American automakers want to cut costs on parts, they turn to China. When German automakers want cheaper parts, they turn to North America. Automotive News [sub] reports that German automakers are looking to buy more parts made in North America to "cope with the dollar-euro exchange rate." AN says the Germans are asking their suppliers if they can build sub-assemblies (e.g. seats) with parts bought in the "dollar-zone." That's a no-brainer for Mercedes and BMW, who assemble vehicles in North America. But the dollar – euro disparity is now so great that even Audi, who builds NA-spec models in Europe, are switching to American parts to cut costs. Does this mean we should start looking for the UAW label in German vehicles? Nope.
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Quote "Every cloud has its silver lining, I guess." In this case that's debatable. A devalued dollar means more expensive imported goods and inflationary pressures (usually leading to higher interest rates). Net result - everyone's working like dogs to make ends meet, foreign products are beyond many people's reach, we can't afford to travel abroad and we'll be riding around on bikes because we can't afford the gas. Mmm does sound like China.
Mike S: Don't get too optimistic now...