4 ms·

Is that actually feasible or just marketing copy? Moving car production sounds like a multi-year effort. The latest tariff numbers might not even last the week.

Is that actually feasible or just marketing copy? Moving car production sounds like a multi-year effort. The latest tariff numbers might not even last the week. Or is this one of a, "99% constructed in Japan, but we attached the wiper blades in the USA" kind of manufacturing move?

alephnerd 2y ago
> a, "99% constructed in Japan, but we attached the wiper blades in the USA" kind of manufacturing move CDKs would still be hit by the 25% auto tariff (unrelated to the country level tariffs). It's already been manufactured in Tennessee since 2023, so what's most likely happening is Nissan will stop shipping parts from Japan and rely solely on their NAM supply chain. > Is that actually feasible or just marketing copy Most likely depends on scale. Most firms at Nissan size began building redundancy plans during COVID due to supply chain instability.
- 3eb7988a1663 2y ago
  I guess I am pre-disposed to believe there might be clever ways around it. I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks.
  - alephnerd 2y ago
    > I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks Regulators don't take kindly to those kinds of shenanigans. Ford had to pay $365M in fines [0] for that stunt (which is around 6% of their yearly net income - painful in a low margins industry like car manufacturing). Volkswagen tried something similar in India as well and now needs to pay $2.5-3 Billion (17% of their year net income) as a result. [0] - https://www.reuters.com/business/autos-transportation/ford-pay-365-million-us-import-tariff-evasion-case-2024-03-11/ https://www.reuters.com/business/autos-transportation/ford-p...
    - 3eb7988a1663 2y ago
      I only heard the start of the story, never about the penalties. Good to know that there is (eventual) enforcement.
  - ttyprintk 2y ago
    Classical “tariff engineering” also includes a small, hidden pocket on some garments to make them into shirts.

alephnerd 2y ago

> a, "99% constructed in Japan, but we attached the wiper blades in the USA" kind of manufacturing move CDKs would still be hit by the 25% auto tariff (unrelated to the country level tariffs). It's already been manufactured in Tennessee since 2023, so what's most likely happening is Nissan will stop shipping parts from Japan and rely solely on their NAM supply chain. > Is that actually feasible or just marketing copy Most likely depends on scale. Most firms at Nissan size began building redundancy plans during COVID due to supply chain instability.

3eb7988a1663 2y ago
I guess I am pre-disposed to believe there might be clever ways around it. I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks.
- alephnerd 2y ago
  > I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks Regulators don't take kindly to those kinds of shenanigans. Ford had to pay $365M in fines [0] for that stunt (which is around 6% of their yearly net income - painful in a low margins industry like car manufacturing). Volkswagen tried something similar in India as well and now needs to pay $2.5-3 Billion (17% of their year net income) as a result. [0] - https://www.reuters.com/business/autos-transportation/ford-pay-365-million-us-import-tariff-evasion-case-2024-03-11/ https://www.reuters.com/business/autos-transportation/ford-p...
  - 3eb7988a1663 2y ago
    I only heard the start of the story, never about the penalties. Good to know that there is (eventual) enforcement.
- ttyprintk 2y ago
  Classical “tariff engineering” also includes a small, hidden pocket on some garments to make them into shirts.