By on May 29, 2018

Audi Q2 factory production

President Trump announced a security investigation into auto imports last week, tasking Commerce Secretary Wilbur Ross with the job. His goal will be to determine what effects imported vehicles have on the national security of the United States under Section 232 of the Trade Expansion Act of 1962 — which sounds like a monumental and rather complex task.

Basically, Ross will examine whether or not the U.S. can get away with escalating automotive tariffs. That’s a touchy subject, considering how contentious global trade has become in recent months. Worse yet, the 80-year-old commerce secretary will have to continue promoting American businesses and industries outside its borders while deciding on an issue few trade partners will be happy with.

Automakers aren’t thrilled either. After Trump announced the investigation, the Association of Global Automakers and Alliance of Automobile Manufacturers both said they didn’t believe vehicle imports posed a national security risk. “To our knowledge, no one is asking for this protection. If these tariffs are imposed, consumers are going to take a big hit,” said John Bozella, President of Global Automakers, in a statement. “This course of action will undermine the health and competitiveness of the U.S. auto industry.”

The Alliance of Automobile Manufacturers, which includes domestic manufacturers, was similarly concerned. In a statement, it wrote:

This investigation under Section 232 is a process that has rarely been used and traditionally has not focused on finished products. We are confident that vehicle imports do not pose a national security risk to the U.S. Last year, 13 domestic and international automakers manufactured nearly 12 million vehicles in the U.S. The auto sector remains the leading exporter of manufactured goods in our country. During the last 25 years, 15 new manufacturing plants have been launched in the U.S. — resulting in the creation of an additional 50,000 direct and 350,000 indirect auto jobs throughout America — and new plants are on the way. We urge the Administration to support policies that remove barriers to free trade and we will continue to work with them and provide input to achieve that goal.

Presently, the United States imposes a 2.5 percent tariff on passenger cars and a 25 percent import fee on light trucks. While China has promised to reduce its own passenger vehicle tariffs from 25 to 15 percent this summer, the European Union is expected to to stick with its 10 percent import duty on cars and trucks for the foreseeable future.

Japan, which has has more skin in the game than most, has a lot to lose if the U.S. imposes new tariffs. Japanese Prime Minister Shinzo Abe said on Monday he would seek to convince President Trump of the crucial role his country’s automakers play in helping the U.S. economy thrive.

“Japanese automakers have created jobs and made huge contributions to the U.S. economy,” Abe told parliament, when asked how Japan would respond to the United States’s national security investigation.”As a country that prioritizes a rule-based, multilateral trade system, Japan believes that any steps taken on trade must be in line with World Trade Organization rules.”

Japanese automakers build roughly twice as many cars within the United States than they import. Still, Trump has been critical of American cars’ inability to take off in the Land of the Rising Sun. We should add that issue is incredibly complex and has less to do with tariffs than it does the public perception of American autos, plus high costs associated with establishing  and running dealer networks inside Japan.

At any rate, Abe says he’ll remain committed to maintaining a strong relationship between Japan and the United States and will continue to encourage the Western nation to join the Trans-Pacific Partnership. “Japan has explained to the United States its stance that TPP is the best format for both countries. We will continue to talk with the United States based on this view,” he said.

[Image: Audi]      [Source: Reuters]

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52 Comments on “Trade War Watch: Automakers Respond to U.S. Import Investigation, Japan Keeps the Faith...”


  • avatar
    TW5

    In the course of human history has there ever been so much squelching when one government tells another government, “our import tariffs will be the same as yours”?

    This is getting ridiculous.

    • 0 avatar
      Ce he sin

      Well, given that Japan currently imposes no tariffs on imported cars there would indeed be “squelching” wouldn’t there if the Americans decided to impose increased tariffs? If however they decided to match the nil tariffs imposed by Japan wouldn’t that be OK by you?

      • 0 avatar
        TW5

        Japan has the lowest market penetration rate in the OECD for foreign makes, and they produce about twice as many cars as their domestic market can handle.

        You’re right, we are being much too nice to them by mulling statutory changes to tariffs, rather than equalizing tariffs and closing our market with non-tariff barriers, etc.

        • 0 avatar
          Big Al from Oz

          TW5,
          It looks as if the Japanese are better at producing a product the consumer wants than the US Big 3.

          Fullsize pickups and pickup station wagons are nice, but overall the quality is not good for the big bucks they cost to buy and operate.

          The US would do better if it made what the customer wants. Just because America uses it, doesn’t mean others want it. The Japanese build vehicles that are globally desirable.

          Look at some of the US fast food companies and even Coke, Levis, Apple, etc. They build what the customer wants and they sell around the world.

          Cars and trucks are no different. No one makes the US pay more for anything.

          I think its just the scared and perpetually fearful and insecure far right wing beanheads that have an issue.

          Are you a micromanager at work? You seem to want total control. Never get married you might have to share.

    • 0 avatar
      ect

      TW5, the central purpose of GATT, WTO, NAFTA, TPP, Treaty of Rome, Mercosur and other trade agreements has been to bring an end to such “squelching”. Trump now seeks to impose new trade barriers outside of the ;eve;s st by trade agreements the US has signed. It can hardly be surprising that the targets of those tariffs complain, and plan retaliation that will hurt key US export sectors, like high-value manufacturing and agriculture.

      The Trump people act like they never saw this coming. Which is extremely worrisome.

      • 0 avatar
        28-Cars-Later

        All of those have destroyed the US over time and need to be repealed. One cannot compete with labor costs where one salary buys five plus foreign workers.

      • 0 avatar
        TW5

        @ ect

        I know this might be hard to understand, but when one party or numerous parties leverage a contract to cause injury to one of the participants, the affected participant will breach. Furthermore, those organizations were not designed to stop squelching, but to install a supranational referee that foreign governments hoped would make it impossible for the US to breach.

        Once upon a time everyone understood that the US was using these trade organizations to open up the world markets and improve global commerce to benefit mankind. Unfortunately, liberalization has been disproportionately adopted, and free trade agreements have been exploited, even by our so called allies, to siphon wealth out of the US without a proportionate improvement in quality of life for the average American.

        And the only rebuttal these belligerent trade nations have is that the nefarious American political forces who support these international trade agreements, regardless of outcome, are doing much worse things to Americans with US domestic policy than any foreign government is doing with trade.

        All of this is going to come to and end.

    • 0 avatar
      Big Al from Oz

      TW5,
      Where is the explosion of US vehicles in Australia?

      We love large V8s and we don’t penalise anyone, we have a free economy, one of the six or seven globally. Australia even allowed US vehicles of a different standard to enter our country.

      Japan doesn’t penalise the US, so where are the US vehicles in Japan.

      Why would you buy a lower quality Ford, GM globally when Thailand produces the same stuff of a higher quality and cheaper.

  • avatar
    TMA1

    The Section 232 Steel Report was 262 pages, 190 of which were testimony from US steel producers seeking protection. I don’t know who in the US auto industry would even want this, or who they expect to show up at the hearings.

    Donny is acting like this is the 1980s. The threat from imported cars was met when they were convinced to set up shop in the US. Maybe he’s just trying to leverage more trade concessions, but I don’t think there’s much to support this.

    • 0 avatar
      28-Cars-Later

      Acting like? He is Mr. 80s.

    • 0 avatar
      Big Al from Oz

      TMA1,
      When the final chapter of the Chicken Tax was entered in 1980 the US also forced Japan (volun’told) to bring some vehicle production to the US for their small vehicles.

      The Japanese didn’t move to the US as freely as many think. The Japanese were “forced” to reduce by a couple of million vehicles their exports to the US.

      The US has historically been inefficient at vehicle production, especially after the first Energy Crisis. Even CAFE was set up to prop up large vehicle production, ie, pickups.

      • 0 avatar
        DenverMike

        Just ignorant. It’d be stupid to hold “trucks” to the same “standards” as cars. Might as well ban them, no? Pound for pound, who say they’re not as efficient as midsize cars?

        Initially CAFE only exempted all fullsize trucks, meaning big pickups, vans and SUVs.

        Remember when minivans and mini-trucks were actually “mini”? By the early ’90s, CAFE also exempt minivans, mini-trucks and midsize SUVS, and guess what happened next? They quickly became not so “mini”.

        The important thing to take away is CAFE makes no distinctions. Any import or offshore automaker can fully take advantage of any rules that may favor larger vehicles. The rest is left up to consumer preferences.

        No doubt the oil crisis caught Detroit Big 3 automakers flatfooted. The restriction on Japanese imports was temporary and the Big 3 made good use of it.

        The restrictions inspired Japanese automakers to invent luxury brands from Honda, Nissan and Toyota, and now they prefer to build in the US despite zero import restrictions.

        With “trucks”, fullsizers especially, no one could’ve predicted Japanese automakers wouldn’t be able to dominate here too, like they did with cars. You can’t say they didn’t have, or still don’t have every chance. And yes with CAFE and even the Chicken tax helping where they can.

    • 0 avatar
      thornmark

      Importing cars from China is a large threat that needs to be addressed.

      Volvo, Buick and I believe Jeep are doing it or are about to.

  • avatar
    Fred

    Does anyone know of a link or personally what cars are made in Japan and imported to US? Seems like the majority are made here or NAFTA.

    • 0 avatar
      TMA1

      I don’t, but it seems like at this point all the high volume stuff (mid & compact sedans/CUVs/trucks) comes from NAFTA countries. Mazda is probably the company most tied to Japan, and even they’ve opened a factory in Mexico.

    • 0 avatar
      TW5

      To my knowledge all Lexuses are still made in Japan, except for the RX which is built in Canada. Priuses were also made in Japan, even when the US was their highest volume market. Japan is now the number one market for Priuses of all types, but they were supposed to move production to the US. Not sure if they have done it already or if they are slow walking.

    • 0 avatar
      Luke42

      Look up a VIN decoder.

      You can tell the country of manufacture of a particular car by the first couple of letters in the VIN, which is visible through the windshield when parked.

      There can be a lot of surprises. I once simultaneously owned a foreign-made Ford and a domestically made Toyota. It’s fun to present certain people with data which fails to confirm their assumptions!

    • 0 avatar
      Fred

      Well I think you guys pretty much covered it, I would add Mitsubishi. Still it seems like most “Japanese” cars are at least assembled in America. How this all is a security issue I don’t know, but I’ll Trump have his fun on this one.

  • avatar
    Lou_BC

    I’m puzzled as to how import cars pose a national security risk? It is not as if Toyota Tacoma’s come with mounts for various military weaponry.

    • 0 avatar
      28-Cars-Later

      Why not? Seems like a missing feature to me.

    • 0 avatar
      Big Al from Oz

      Lou,
      American’s should look at where their toilet paper comes from. I know in Australia much of ours comes from Indonesia.

      Imagine the security risk of no toilet paper.

      Why is it American’s are so worried about vehicle manufacturing when the most significant aspect of life, healthcare is in such a poor state in the US.

      American’s average $11 000 per year per person for healthcare. The second most expensive place is Australia at $6 000. So, in America they might be paying a buck less a gallon for gas, but we can buy an additional 5 000 gallons a year for each Australian or 8 000 gallons per vehicle!

      In US speak another 1 000 Big Mac Meal Deals, with an apple pie…… per person.

      • 0 avatar
        Luke42

        Big Al,

        It’s true. Healthcare is one of our biggest problems in the US, and the lack of access to it probably is a bigger threat to the national security of the United States of America than free-ish trade in automobiles.

        However, admitting that the USA has problems that need to be solved is considered unpatriotic in the rural/conservative half of the country. Only liberals would be so treasonous as use our first amendment rights to improve the situation for all Americans here in the USA.

        The smarter people in conservative culture go along with this because they don’t like the solutions to the problems (largely because government might be part of the solution). If they can keep the discussion on the question of whether the problem exists, they can avoid uncomfortable conversations where they have to essentially defend their positions and values against common sense.

        • 0 avatar
          TW5

          @ Luke42

          Half of the country believes that Obamacare is a success and a vital reform that improves US health insurance and care. The United States is always fighting a gale force headwind of debilitating stupidity, exercised by the sort of people who inexplicably believe they lack the resources and intelligence to successfully navigate a market, but they somehow have the clairvoyance to choose the right person to do it for them via the clumsy mechanism of democratic franchise.

          The first step to making any improvement in our country is neutralizing the legislative, judiciary and executive power of the people who apparently think representative democracy is a business where people order the goods and services they need on a public credit card.

          And it’s funny you should mention healthcare as a central problem and then suggest the US government could be part of the solution. Demonstrates that you don’t understand the role our government plays in driving up costs.

          • 0 avatar
            Big Al from Oz

            TW5,
            US vehicle manufacturers have to look at how they oprate, as does US healthcare.

            If there is such a wide margin of cost vs quality in providing health cover compared to every other competitor then the whole of the US health industry needs to change.

            Obamacare did not address big pharma, insurance, legal, AMA,etc. Its the control, rules, regulations giving US citizens poorer health cover.

            The auto industry (Big 3) is in a similar position. Controls, rules and regulation is much different than the competition. Hence, its harder to compete.

            It seems the US should look at changing the way its auto manufacturers operate to become competitive to produce more exports.

          • 0 avatar
            TW5

            @ Big Al from Oz

            Yes, the US healthcare industry does need to change. Right now, the US tax code exempts health insurance premiums from taxation, if they are paid by your employer. This makes everyone dependent upon their employer and it divorces people from cost. Worse, it creates economic incentives for the employer to turn cash compensation into tax-free health insurance benefits. The easiest way to create more tax-free health insurance benefits is cover all sorts of routine services that the person could otherwise afford.

            We are trapped in an employer care system. Obamacare should have been designed to set us free, but it actually consolidated the health insurers control by mandating that everyone carry coverage, and by paying the insurers billions of taxpayer dollars to cover individuals not in the employer system.

            Reforms can easily be made via the taxcode that will bring down costs and dismantle the employer-provided insurance system.

    • 0 avatar
      Big Al from Oz

      Lou,
      That Chev Colorado with the Army looks really savage;)

  • avatar

    You guys do not see the big picture – the end of Globalism as we knew it and rise of Nationalism. In next ten years UN may be disbanded and EU is under permanent stress too. Soviet Union ceased to exist and instead evolved into the multitude of nationalistic intolerant states some apparently dominated by Nazis. UN became the caricature of itself. It is subsidized by US and at the same time is the most anti-american organization in the world. This simply is not sustainable anymore. So yes second round of globalization failed also, we have to face facts.

    • 0 avatar
      ect

      Fantasy. Your tinfoil hat feeling a little tight these days?

    • 0 avatar
      28-Cars-Later

      Some of that is kinda true but I think disbanding UN is wishful thinking at best. EU was always a flawed project and will eventually collapse under its own weight. Depending on who you want to believe, the EU as it stands now was supposedly part a Soviet project to neutralize Europe and thus NATO.

      en.wikipedia.org/wiki/Common_European_Home

    • 0 avatar
      Big Al from Oz

      Inside Looking Out,
      I think you’ll find most who voted for Donald Dump do not support his ways. They voted because they vote Republican. I would think less than 25% would actually support Trump.

      The same goes for the Brexit situation.

      Many must realise when you protest vote, you can vote a total fucktard in, like Trump and now you must live with that poor decision.

      I’m no fan of Obama, but geez, he sure was a lot better than Trump.

    • 0 avatar
      Luke42

      @Inside Looking Out:

      No, we’re seeing the last gasps of isolationism and ethnic nationalism. The airliner and the Internet have both permanently shrunk the earth.

      The test pilots who flew the Boeing 707 called it “a real world shrinker”, and they were right. Obligatory link to one of those test pilots telling his story:
      https://youtu.be/Ra_khhzuFlE
      Bonus: airliner aerobatics

      I don’t need to cite anything for the Internet’s world-shrinking ability, because you’re using it right now.

      The EU model may have to change (governments work better when fiscal and monetary policy are aligned, and the EU model doesn’t do that while the US model kind-of-sort-of mostly does). But it’s not going away any time soon, nor is the UN — they’te just too useful. While lots of old Trumpy Americans seem to want WWII back (for reasons I don’t sympathize with), Europeans are in no hurry to relive the destruction of their civilization(s), and the famines and strife which followed. The EU and UN are both institutions dedicated to preventing that from that happening again. They may change to meet the challenges of the time, but the idea that they will evaporate in a decade is a distopian future that the vast majority right-thinking people will work to avoid.

      • 0 avatar
        Big Al from Oz

        Luke42,
        I’m a right wing person, but I don’t seem to be able to fit into the minority of the likes of some who comment on TTAC, ie, TW5.

        I don’t believe he’s right wing. His views are just purely based on Nationalism at the expense of the country and it’s people.

        I also agree that the world is so inter connected now that it’s far easier to open up wounds as the US is finding out in trade and business.

        With such an opening of global trade inefficiencies are now magnified because of competition.

        40-50 years ago the US was at least a 1/3 of global activity. Now it’s down to 1/5 and ever shrinking.

        As the globe become closer in trade standardisation will occur to facilitate trade and this will mean changes and in the longer term changes for the better.

        What I term the “old guard” with the mindset of the likes of TW5 will gradually become just a background noise. TW5 is happy to have US influence and culture around the world but is far less accepting of external influences making change in the US.

        The US had its time influencing, now as a more homonogised world occurs twists and turns in culture will affect the US. The US used to be far better at accepting innovative and new ideas. I just hope the crusty old guard move on and let the world progress.

  • avatar
    Peter Gazis

    With only 4 U.S. assembly plants, Toyota’s completly F_CK_D!

    • 0 avatar
      "scarey"

      Toyota’s plants are F-ing YUGE ! Look at the size of their plants in Kentucky. And not just assembly- engine manufacturing also. They make Camrys, Corollas, Siennas, etc. here. And their quality is good.I think that Toyota does many things right.

      • 0 avatar
        Peter Gazis

        @Scary

        Lexus – ES made in KY. RX made in Canada
        NX,GX,LX,IS,RC,GS,LS,LC made in Japan
        Crossovers
        Highlander,Sequoia, Sienna, made in Indiana,
        RAV4 made in Canada & Japan
        4Runner, Land Cruiser made in Japan
        C-HR made in Turkey
        Cars
        Avalon made in U.S.
        Corolla made Canada & U.S.
        Camry made in KY & Japan
        Yaris Sedan made in France
        Yaris iA made in Mexico
        Prius, Prius Prime, Prius C, Corolla iM, Mirai, 86 made in Japan
        Trucks
        Tundra, Tacoma TRD made in Texas
        Tacoma, Heche en Mexico

        Like I said: F_CK_D!

        • 0 avatar
          Luke42

          If imports are curtailed, Toyota will have to cut their lineup to inckude just the most profitable vehicles (which probably won’t be the most needed or most affordable vehicles).

          Like what Ford is doing.

          This is Econ 102: trade barriers lead to lower selection, higher prices. Good for the company, bad for the buyer — especially if all of the other global automakers (and they’re all global) face conditions which encourage them to do the same. (Remember that most Americans do not work for the auto industry and have minimal investments.)

  • avatar
    Big Al from Oz

    I think some including Donald Trump need to look at the underlying reasons behind the current woes in the US vehicle manufacturing industry.

    I don’t think it is imports that are the problem.

    The US vehicle market represents around 20% of global consumption. This sounds large, but look at it from this persepective that 80% of global vehicle consumption is not the US and it looks differently.

    The rest of the world vehicle fleet have vehicles that the US uses, but the US doesn’t have the vehicle fleet that the rest of the world uses.

    What I’m saying is the US needs to look at how it can modify it’s vehicle fleet makeup to be competitive. Whilst 80% of the vehicles used in the rest of the World makes up 2/3s of the US vehicle fleet and the US being a high cost nation producing lower quality consumer vehicles will not be able to compete.

    I do like the large US pickups and pickup truck station wagons, but whilst you attempt to cling onto them you will need to import many vehicles you are not competitive at producing.

    It has little to do with other countries taxing ‘Murica, it has more to do with the fact the US produces lower quality, expensive vehicles not many want outside of the US.

    • 0 avatar
      "scarey"

      Imports ARE a big problem. Mostly because many imports still have a large quality gap over domestic brands. Look at Camry. Many generations of essentially the same car. Meanwhile GM and Ford are starting with a new design every 5 or 6 years. No incremental improvements. A new learning curve every time. Sure, they make improvements with each new design, but they also make new mistakes. American pickups and Suburban-type vehicles are good because the manufacturers care enough to make a good product and spend the money to do so. American cars, especially small cars are crap because they have no desire to make them any better. It is all in the corporate philosophy of each company. Make a good product or make a bad one. After many decades of making lousy products, you must admit that you just don’t care. Why would other markets buy something that we don’t even want ourselves ?

      • 0 avatar
        Big Al from Oz

        “scary”,
        You more or less proved my statement with your “American pickups and Suburban-type vehicles are good”. They in fact are not good. If they were why are they not exported globally in amounts like Landcruisers/Lexus570, Patrols, Range/Land Rovers, etc?

        They are only suited and really sell in the US market. The same goes for full and mid size pickups.

        There is an explosion of mid size pickups globally and there are NO US manufactured mid sizers competing.

        This shows the US, even with full size vehicles are not as competitive as others.

  • avatar
    juehoe

    Most of the US cars are not suitable for Europe or Japan (size, quality). That is the main reason why there are only a few US cars are sold in these markets.

    • 0 avatar
      Big Al from Oz

      juehoe,
      The US does have niche vehicles that sell okay, the Mustang and Wrangler do okay as does the Grand Cherokee.

      The US can produce a competitive product, but it would be far more competitive if it built vehicles to the same standard of UNECE vehicles, fuel efficient and smaller to fit into Asian/Euro infrastructure.

      A full size pickup or pickup station wagon doesn’t work well in most Asian or European countries. Many other countries don’t have the money to buy them and they are not durable enough to operate in those countries like Landcruisers, Patrols, etc.

      But, as I’ve seen the Michigan made Focus was of poor quality compared to the EU, Sth African or Thai Focuses.

  • avatar
    Astigmatism

    The funniest thing about this is that, whenever there’s a thread discussing low fuel prices in the US and the corresponding predilection for US automakers to stuff their lines with full-size SUVs and trucks, people insist that it doesn’t matter that they don’t sell anywhere else in the world, because this is Amurikah and we’re the biggest market and we’ve got the money and who cares what stupid Europeans drive anyway?

    And now it’s apparently so terrible that foreign automakers make more cars that Americans want to buy than America makes trucks (because we barely make cars anymore) that foreigners want to buy, that we should all have to pay 25% more for our next car.

    Is the extra $200 a month on my next car loan what winning feels like? Because I could see growing tired of that real fast.

    • 0 avatar
      St.George

      And the dems are blaming Trump for ‘high’ gas prices:-

      https://www.washingtontimes.com/news/2018/may/27/chuck-schumer-democrats-blame-trump-gas-price-spik/

      Only a couple of years ago they cheered high gas prices as a way to force everyone into small vehicles, ‘think of the whales!’.

      Regarding tariffs, I understand that the threat of imposing a 25% tax is not a blanket one on all imports, but merely targets imports from countries that themselves impose high tariffs (think China and their long trade war that has been waged for many years). The last time I checked, you could buy cars from foreign automakers built here in the US tariff free!

      Tariffs have been a part of world trade for centuries, taking the protest against them to the logical conclusion would be to eliminate them entirely. I don’t know what this would do to ‘Western’ economies but it probably wouldn’t be pretty.

      • 0 avatar
        Astigmatism

        Gee, never seen that before.

        http://thehill.com/homenews/house/213001-boehner-blames-obama-for-high-gas-prices-lack-of-national-energy-policy
        https://www.nytimes.com/2012/02/19/us/politics/high-gas-prices-give-gop-issue-to-attack-obama.html
        https://www.cbsnews.com/news/mitt-romney-obama-to-blame-for-high-gas-prices/

        Regarding tariffs, your understanding seems to be contrary to Trump’s. Nothing in his statement, or the Commerce Department’s, said that the tariffs would only be imposed on countries with high tariffs on American cars; as the article you’re reading notes, Japan has no such high tariffs, Mexico and Canada have none under NAFTA, and even the EU only imposes a 10% tariff on auto imports (while the US already imposes a 25% tariff on imported trucks).

        https://www.politico.com/newsletters/morning-money/2018/05/24/trump-threatens-auto-tariffs-228327

        • 0 avatar
          thornmark

          The BO energy policy was to limit production and raise prices.

          Reality did not comply – but not because BO didn’t try. The increase in US oil production happened despite BO’s worst efforts.

          • 0 avatar
            Astigmatism

            The DT energy policy is to destabilize the parts of the world that produce oil, increase demand in the parts of the world that use oil, and raise prices. Reality has been complying very well.

          • 0 avatar
            thornmark

            because DT destabilized Venezuela – the socialist utopia of Col Sanders and all the economic illiterates that comprise the Dem party

            If the Sanders ever did take power in the US, Venezuela is his model.

  • avatar
    Sub-600

    Big Al just went six consecutive posts without using the term ‘chicken tax’. Either he’s warming to the idea or the “c” key is busted on his Chinese laptop.

  • avatar
    Big Al from Oz

    TW5,
    US vehicle manufacturers have to look at how they oprate, as does US healthcare.

    If there is such a wide margin of cost vs quality in providing health cover compared to every other competitor then the whole of the US health industry needs to change.

    Obamacare did not address big pharma, insurance, legal, AMA,etc. Its the control, rules, regulations giving US citizens poorer health cover.

    The auto industry (Big 3) is in a similar position. Controls, rules and regulation is much different than the competition. Hence, its harder to compete.

    It seems the US should look at changing the way its auto manufacturers operate to become competitive to produce more exports.


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