OV9

Actually, I’ve just realised that the tariffs are probably a mechanism to try and force companies to bring that manufacturing back to the US.

I’m sure someone else realised this months ago.

But all it will do is drive inflation...

There's zero chance that a US factory will be able to make an engine as cheap as Mexico so prices will rise. Same goes for just about every single product in America.

Yeah, I’m not saying it’s a good or practical idea. They haven’t as yet had one of those

dinny_g wrote: Mon Feb 03, 2025 12:11 pm But all it will do is drive inflation...

There's zero chance that a US factory will be able to make an engine as cheap as Mexico so prices will rise. Same goes for just about every single product in America.

That covers wages and energy, but………

You can’t switch off a factory, relocate it, and start again quickly. It’s probably a 2-5 year project to build, move production lines, train staff and get over initial snags to start producing same quality and same speed.

So you need to build a new factory and furnish it with machinery from scratch to continue making your engines while you get production online at the new site, at a cost of several millions

And that’s ignoring where the steel and aluminium etc all comes from

It will either drive inflation or force more manufacturers into advancing plans to be ev only, and shut down engine manufacturing all together.

jamcg wrote: Mon Feb 03, 2025 12:20 pm So you need to build a new factory and furnish it with machinery from scratch to continue making your engines while you get production online at the new site, at a cost of several millions

Several *hundred* millions !

But assuming those engine plants are owned by the manufacturers (?), the obvious cheat is for the Canadian/Mexican factories to sell the engines to the US factories for $1 each and pay the tariff on that. It's called Transfer Pricing and is a totally normal accounting practice for multinational companies to shift where in the world they report their profit.

$1 is extreme but they're probably doing something along those lines already to manage their tax bills.

dinny_g wrote: Mon Feb 03, 2025 12:11 pm But all it will do is drive inflation...

There's zero chance that a US factory will be able to make an engine as cheap as Mexico so prices will rise. Same goes for just about every single product in America.

Which is why they moved to Mexico in the first place (obviously)

Why is no one realising this?

How can US production not increase costs when the whole reason these things are no longer made in the States was specifically to lower costs?!

jamcg wrote: Mon Feb 03, 2025 11:56 am

Mito Man wrote: Sun Feb 02, 2025 6:09 pm Think it's time I make a list and order service parts and consumables for the American cars from RockAuto for the next 4 years before we get involved in this shit show.
Oil filters, spark plugs, cabin filters, brake pads, diff/gearbox/engine sump plugs, wipers.

This was the point I was trying to make about the knock onto supply chains in USA. The Ford Coyote 5.0v8 engine is made in Canada

IMG_4403.png

I don’t think anything on the F150 that I’ve ever taken off has been made in America. All the individual parts are Canada/Mexico and the rare bit of China.
It does have stickers everywhere saying “Built tough with pride in Dearborn”

All the GM AC Delco stuff is made in China too.

I think the most American car in terms of parts sourced is actually the built in America Teslas.

I ordered everything for 5 years last night - thinking 4 years of Trump going nuts and then 1 year of full out civil war before order is restored.

dinny_g wrote: Mon Feb 03, 2025 12:11 pm But all it will do is drive inflation...

There's zero chance that a US factory will be able to make an engine as cheap as Mexico so prices will rise. Same goes for just about every single product in America.

And bringing said factories online will take years as well, hardly going to happen overnight! It could (strong "could"!) be that what Trump is up to will cripple the US in the short term but be great for the US in 3-5 years. I doubt it though.

Frankly I think either someone needs to kidnap Musk, or the other 191 nations need to agree to trade with each other and cut the US completely out

As Baroness Featherstone recently said "My Lords, the sooner Musk goes to Mars the better"

Can now add Gaza to the list of places Trump is going to annex.

Is he still going on about cleaning it out, based on ethnicity?

So, just to document the absurd nonsense.

The terrible trade deal for the American people that they had with Canada. That was a wonderful trade deal which Trump created and signed off as incredible back in 2018.


The conditions agreed to by both Canada and Mexico which have resulted in the temporary lifting of tariffs we already signed off and in place by the previous Biden administration.

The whole thing is just bonkers.

Meanwhile, Canadians are quite rightly extremely pissed off and going to continue their boycott of American goods, and I don’t blame them at all

integrale_evo wrote: Wed Feb 05, 2025 6:19 am Meanwhile, Canadians are quite rightly extremely pissed off and going to continue their boycott of American goods, and I don’t blame them at all

It's probably made them realise how dependent they are on the US. We'd probably all be wise to think about the origin of the products we use and where possible buy local, otherwise another country ends up having you by the balls at some point.

duncs500 wrote: Wed Feb 05, 2025 6:31 am

integrale_evo wrote: Wed Feb 05, 2025 6:19 am Meanwhile, Canadians are quite rightly extremely pissed off and going to continue their boycott of American goods, and I don’t blame them at all

It's probably made them realise how dependent they are on the US. We'd probably all be wise to think about the origin of the products we use and where possible buy local, otherwise another country ends up having you by the balls at some point.

But late fir that mate, if China decides to stop playing ball everything grinds to a halt in about a fortnight

A lot of chat about Musk’s goon squad being made up of groypers.

For the uninitiated they were boys who were radicalised into white supremacy and incel culture by influencers. Now old enough to work so Musk has put them to it.

https://en.m.wikipedia.org/wiki/Groypers

Really shining a light on that network of reactionary influencers working towards a common goal folk denied existing a few years ago

ZedLeg wrote: Wed Feb 05, 2025 6:51 am

duncs500 wrote: Wed Feb 05, 2025 6:31 am

integrale_evo wrote: Wed Feb 05, 2025 6:19 am Meanwhile, Canadians are quite rightly extremely pissed off and going to continue their boycott of American goods, and I don’t blame them at all

It's probably made them realise how dependent they are on the US. We'd probably all be wise to think about the origin of the products we use and where possible buy local, otherwise another country ends up having you by the balls at some point.

But late fir that mate, if China decides to stop playing ball everything grinds to a halt in about a fortnight

I know that we are heavily dependent of course, but it's not (as far as we know) too late. Even from an environmental perspective as opposed to economic, still worth thinking about. I know I'm stating the obvious here!

I fully agree btw, no one’s willing to make the sacrifices needed though. That being more expensive things in general and the lack of ability to have any piece of cheap tat you want from 6000 miles away in two days.

Beany wrote: Wed Feb 05, 2025 1:12 am Is he still going on about cleaning it out, based on ethnicity?

He wants all the Palestinians to move to Egypt. So yeah, basically. He’s also taken the US out of the UN Human Rights Council again. Congrats to all the college kids who refused to vote for Kamala because of Gaza.

And that means Egypt will be next on the tariff roundabout when they say no to 2m refugees.

Threaten tariff, upset everyone, back down, VICTORY PARADE. Rinse. Repeat.

Except China who have called his bluff and wouldn’t even have a meeting so now he has to deal with an actual trade war. FAFO

ZedLeg wrote: Wed Feb 05, 2025 8:42 am I fully agree btw, no one’s willing to make the sacrifices needed though. That being more expensive things in general and the lack of ability to have any piece of cheap tat you want from 6000 miles away in two days.

We need to make the cheap foreign manufacturing less appealing. Maybe put some kind of tax on it ???