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Volkswagen Prepares for a Deglobalized World
- bumbledraven 5y agohttps://archive.ph/hi4PM https://archive.ph/hi4PM
- smackeyacky 5y agoVolkswagen should be well versed in de-globalizing it's operations. They used to assemble (not manufacture) vehicles all over the world (Australia, Mexico, Brazil etc) using a mix of locally sourced replacement parts and imported German parts. This strategy was effective when governments had trade barriers, import tarriffs and industry policies that wanted to ensure that factory capacity in your local country was increased. Companies like GM used to use it like attaching a teat to your country, they would build some variant of their product in your country as long as you paid what amounted to protection money. Factory capacity, in that post-war era, being used as a proxy for military capability in an era where it wasn't entirely clear whether you might need to switch your country to making munitions, arms or military vehicles. It all got dismantled with neo-liberalism. Seems like the pendulum is swinging back towards rebuilding that capacity with heightened security tensions in the modern era. I would expect those protection rackets to ramp back up again so expect fewer choices in the automotive sector along with higher prices.