I am proud of myself I could spell elephant correctly.....Now, if I can just finally spell especially right.
So, how much will tariff effect the car industry?
Yeah, more and more people are asking me to write on this.....
Here are the cars assembled in Mexico and Canada and sold in the U.S.
CANADA-
- Honda CR-V: Made in Indiana, Ohio, and Alliston, Ontario.
- Toyota RAV4: In addition to other factories, this popular SUV is made in Woodstock and Cambridge, Ontario.
- Lexus NX: In addition to two locations in Japan, the NX is made in Cambridge.
- Lexus RX: Made in Cambridge, Ontario.
- Chrysler Pacifica and Voyager: Made in Windsor, Ontario.
- Dodge Charger Daytona: Stellantis Windsor Assembly Plant in Windsor, Ontario.
- Chevrolet Silverado: Made in three US plants as well as in Oshawa, Ontario, and Silao, Mexico.
- Ford Mustang GTD: Finished in Markham, Ontario.
MEXICO-
- Chevrolet Silverado: Some made in Silao, including the 1500 model.
- Ford Maverick: Made in Hermosillo.
- Ford Bronco Sport: Made in Hermosillo.
- Ford Mustang Mach-E: Made in Cuautitlan.
- Audi Q5: Made in San José Chiapa.
- BMW 2-Series: Made in San Luis Potosi.
- BMW 3-Series: Made in San Luis Potosi.
- Chevrolet Equinox, Equinox EV: Some are made in San Luis Potosi and Ramos Arizpe, others in Ingersoll, Ontario, Canada.
- GMC Terrain: Made in San Luis Potosí. The first gen was built in Ingersoll, Ontario.
- Ram 1500 and 2500: The Ram 1500 is made at the Sterling Heights Assembly Plant in Michigan and at the Saltillo Truck Assembly Plant in Mexico, while the Ram 2500 is made in Saltillo.
- VW Jetta, Taos and Tiguan are made in Puebla, Mexico
- Honda Fit and HR-V are made in Celaya, Mexico
That's just Mexico and Canada...... Not the rest of the world.
This is just assembled.....If a 25% tariff is imposed, prices could increase by as much as $12,000 for some models, or as little as $4,000 for others, in both cases a cost that will almost certainly be passed on to U.S. buyers.
This includes parts in assembly.
Thousands of parts are used to make a vehicle....
They were talking on the Wall Street Journal how many times parts cross the border in the process of being made. For example. There is transmission company in Ontario, Canada that has a building process in which the manufacturing of the transmission is shipped back and forth between Ontario, in Canada to Ohio, to Illinois, back to Canada, to Indiana, back to Canada, each plant had a specialized process in the making of the transmission, and according to the Wall Street Journal, every time it is shipped across the border, a tariff would be applied. That's before it is sent to America to be put on the vehicle.
That's just one part....
The car parts come from all overseas
GM Parts-
These are just a few, some made in the USA, but others..... Nothing, parts, is made in total in any country.
Wheels/Rims & Wheels- Mexico. Bulgaria. Hell, I'd want my rims made in Mexico. That probably sounds racist. But...true.
Tires- Korea
Engines- Mexico, Argentina
Brake Assembly- Romania
Transmissions- Canada, Mexico, China
Electronics- Japan, Taiwan, India, China.....And others.....Most cars have electronics, computers, parts from all over the world.
Already a car maker has said that to move everything back to America is impossible. It would be like move the state of Maine, everyone, everything, land and all to Wyoming. And even then, it probably won't be enough....Far from it.
I am sorry, but China is going to wind up being the world's large car maker. And I've ridden in Chinese vehicles over there. They are not junk like you think they are. They've come a long ways. They are building cars to compete with Honda and Mazda.My son's father in law drives a Mazda equivalent sedan....It's 12 years old, and has 140,000 miles on it. I was surprised at the quality....No, cannot but them here. And GM really want(ed) to tap the Chinese market, but now....And the Chinese love Buicks. It is why Buick still exists. Certainly not for the U.S. market.
That's just to name a few parts. In one vehicle, the parts might be from 50 different countries.
I don't know. People can't afford cars now. And if you can, well, good for you, a lot of people just cannot.