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I was expecting Hyundai to have a higher domestic content, actually. Culturally, they seem to prefer to be vertically integrated. I would expect something like
by chiph 1y ago
I was expecting Hyundai to have a higher domestic content, actually. Culturally, they seem to prefer to be vertically integrated. I would expect something like the Santa Fe (produced in Alabama) to draw nearly all their parts from local partner and related firms (is "chaebol" an anti-trust term in the US?) and not import major parts like BMW does in Greer SC where engines are flown in on cargo 747s from Germany.
I won't say that NAFTA is dead, but supply and production lines were designed with the assumption the parts could cross the borders any number of times without paying duty. The WSJ looked at the Ford 10-speed transmission used in the F-150 and it apparently crosses the Canadian border at least 3 times, paying different duties each time depending on the content (machined aluminum casting, steel planetary gear sets, subassemblies, etc.)
My guess is that by imposing tariffs on Canada and Mexico, the government is intending to block the Chinese firms who are attempting to back-door their way into the US economy by building factories in the traditional maquiladora areas. Bold move, let's see how it plays out.
- porphyra 1y agoTesla also has a strong culture of preferring vertical integration. And most research unambiguously shows that Teslas are the most Anerican-made.
- 542354234235 1y agoSource? OP comment has actual numbers and sourcing, so to state otherwise needs more than taking your word for it.
- porphyra 1y ago* cars.com American made index: https://www.cars.com/american-made-index/ https://www.cars.com/american-made-index/ * kogod American auto index: https://kogod.american.edu/autoindex/2024 https://kogod.american.edu/autoindex/2024
- protimewaster 1y agoThe Kogod index includes things that likely aren't considered by the government when considering if a product is American made, though. It considers things like where the headquarters is.
- bcrl 1y agoIf Americans think Canada is the backdoor route for China into the US market, then why did Canada impose tariffs on BYD to align with US policy towards China made automobiles? Clearly actions mean nothing with the current administration. Honestly, at this point I think Canada would be better off partnering with China. At least their tariff policies don't change from hour to hour. Canadian policy should be to rescind the tariffs on China made EVs going forward. NAFTA was already killed off by 45. USMCA is being actively destroyed by 47. Canadians simply cannot trust the USA to be a reliable partner in anything now with present leadship.