Tariffs to Help Domestic Manufacturers?

cooterbfd

Who were the political base that elected FDR? The Labor Union.
Doesn't that contradict what you said earlier about labor being resonsible for high gold prices? As far as packard, go to Packardclub.org and check out HISTORY and read vol 4 by that guy I mentioned in my last post.

rockylee

Well GM, for instance sells market specific cars like Opels, Saabs, etc to the European market. I do think some Opel/Saturns would do well in Japan. I even think a car like the 2008' chevy malibu would fair well in Japan. Ford could sell its ford falcon in japan.

Fintail, it's not so much what is in the NA market that would sell but rather having the oppertunity to market our products to them is the issue. I'm very confident if the oppertunity was given to our big 3 we could find something of interest to the citizens of Japan.

It's so easy to disregard our manufactors by saying they have nothing to sell to them so why bother. That is a weak statement made by many IMHO.

Rocky

fintail

I thought this was all about 'American' cars.

Euro cars are niche players there, not common cars.

To have that opportunity, the product has to exist first. And I don't know how much 'opportunity' there is to seek in Japan anyway...it's not a gigantic market, and it shrinks greatly as engine size grows. I think efforts might be better spent in other directions.

2008 Malibu will almost certainly be too big for Japan.

rockylee

Well several Opels would be okay and Cadillac is coming up with a subcompact car for the european market which could be sold in Japan. Europes small car market is similar to Japans and GM's european divisions have enough good product neccessary to give to GM, so they could exploit the japanese market. However that oppertunity isn't realistically available because of all the barriers put into place by the Japanese government and us americans are so closed-minded that we just say we have nothing to sell them. Well I beg to differ and think GM's global portfolio gives them plenty of product to sell the japanese.

Rocky

fintail

Some of those cars have potential. Do you mean the BLS?

When it comes to domestic production, we indeed have little to nothing Japan would want. Do you think a Cobalt or Sebring or Exploder would sell there? No way. The only real domestic I can think of that has had any following in Japan is the strange cult there that likes Astro vans. And I think the mafia there likes big old Caddys. Other than that...lots of domestic (as in Japanese) brand loyalty.

IMO, a lot of money would be spent to crack this market, and that expense might not be recoverable. Once you get the cars in, you have to convince people to like them. That's a huge deal.

rockylee

Yeah the BLS. I do think fintail, the market could be cracked with european cars. Also don't forget the GM subcompacts in North America all will get the new interior treatment. A modern cobalt with the right interior along with the right celebrity's could be just the ticket to crack that market.

Rocky

fintail

I guess I'd have to believe that last bit to believe it. All I can say is I hope GM hires better marketers than what it employs on this continent!

lemonhater

I'd say that. GM has the worse marketers in the NA market. I often look at their comercials and CAN'T figure why I should want the car. What does this model in particular bring. The commericals have flash, but lack informational content.

m1miata

No, I doubt Cobalt excites American markets much--so Japan???. When I think of cars in Japan, I think of those like the Scion xA or the Fit. That really is something which is not American specialty.

Anyway, back to tariffs. Tariff wars have the potential to get pretty ugly. Best to avoid unnecessary tariffs.

I personally think it best that the domestic car manufacturers concentrate on unique cars, with some style and grace, while providing performance and reliability. And listen to the customers with problem cars and find a solution, even when it takes going the extra mile, and buying a car back. I realize it is only part of the equation, and is not as simple as just those elements for successfully winning back customers. There's a whole lot of work to do, and trying to simply clone a Japan car is not going to work. I think GM got it right with the CTS. The car is not a BMW, but instead is a pretty good effort at making an entertaining auto to drive and interesting looking car which a Cadillac owner can be proud of.
-Loren

harrychezt

There is a 2.5% tariff on cars, and 25% on body-on-frame suv's and trucks, last time I looked.
I dunno about currently.

take care/not offense.

kdhspyder

IMO, a lot of money would be spent to crack this market, and that expense might not be recoverable. Once you get the cars in, you have to convince people to like them. That's a huge deal.

Good point. Toyota just launched Lexus in Japan and the reaction was..'So What'..'Where's my BMW?' It will take a lot of money and effort by Toyota, imagine that, to break the stranglehold of the German makers there.

tpe

I seriously doubt GM and Ford will turn their fortunes around with subcompacts like the Cobalt. Does Ford make any money on the Focus? And that's actually a pretty decent car. Even your favorite source, CR, recommends it.

If the domestics need tariffs to compete with the Japanese in this country how could they possibly compete over there? Even if that market was more open it's not like the Japanese are going to place tariffs on their cars in order to make the US cars more attractive.

lokki

The story about Japan not permitting American Cars in WAS true.... about 25 years ago. However, the Americans have now been there for a long time now..... without success.
It's the same problem as in the U.S. - the product.

I was in Japan for 2 weeks a few months back, and foreign cars (i.e. Non-Japanese cars) are common enough to spot in traffic. My impressions pretty much mirror those stated in the article below - Lots of BMWS, and Mercedes. The Volvos and VW's were reasonably common - Some small European Fords (half Mazda?), the occasional Jaguar or Land Rover,and very few GM cars. The ones I saw were mostly those that appeal to the 'show-off crowd' A couple Vette's, a hot-rodded Camaro, and an XLR. Oh, and one lonely green Buick.

A BusinessWeek article from November 2006 Stuck In The Slow Lane In Japan

To be fair, the general appeal of American cars is never going to be great for Japanese until Detroit designs a right-hand drive car that suits Japanese roads, and takes note of the fact that gas is (at the best of times) $5 a gallon and that most of your time is spent in city condition traffic.

However, here's the bottom line from the article:

"...U.S. automakers have also been dented by the perception of poor gas mileage and lingering questions about quality, despite surveys that show U.S. brands catching up to the likes of Toyota. "Sins of years past continue to dog them," says Christopher Richter, an analyst at brokerage CLSA Asia Pacific Markets."

robr2

Yeah the BLS.

Actually the BLS has turned out to be a dog in Europe. It's looked at being too down market and is doing nothing to enhance the brand.

british_rover

I have heard the same thing from a couple of different sources.

rockylee

It looks like instead of putting tariffs on imports the Bush administration has lifted the 2.5% tariff on cars for the South Koreans. :surprise:

Rocky

robr2

And if I understand correctly, exempts them from the 25% tariff on pick up trucks. Look for a Hyundai soon!!

rockylee

I think a Hyundai Pick-up could become the "Cadillac" of pick-ups. They need to drop in a 400+ hp. Tau V8. :shades:

Rocky