TRDRAV4

Not quite Mike...HBs are gaining a little more popularity as of late, every compact car has a hatchback variant! But of course, that pails to the CUV/SUV market...

http://www.thetruthaboutcars.com/201...-made-america/

riredale

Like probably most of you, some mixed feelings about Trump, but delighted he's from a business background and not a professional agitator or attorney. Very positive about the future of the country.

In the past, jobs and manufacturing technology has moved overseas based largely on labor costs, but now it looks like the USA will be a low-energy-cost country and manufacturing will naturally migrate back. Good.

mmarshall

Yes, a number of American-market hatchbacks do sell in the compact (C) and subcompact (B) classes of sedans. But what I was referring to was the number of sedans vs. the number of hatches typically sold in comparison to each other.....particularly in the Chevy Cruze line, where few Cruze hatchbacks are sold in the U.S. market. For some reason, Ford Focus and Fiesta customers (and even the smaller Chevy Sonic and Spark) are more likely to spring for 5-door versions than is typical for the Cruze. And, over at FCA, Dodge never marketed a 5-door version of the Dodge Dart, which was sold in sedan versions only....even though it actually replaced the (hatchback-only) Dodge Caliber. Go Figure......

BTW......thanks for posting that price sticker....and the associated link That is very interesting......enough so that I'll give you your first formal thanks under our new icon-system. The sticker clearly does show that it is a sedan, a 2017 model, an American-spec version, with mixed parts-content, with final-assembly in Mexico, not at Lordstown, OH., and intended for a North Carolina dealership. The 44% U.S.-Canadian vs. the 37% Mexican parts-content, of course, further muddles the picture if it can be considered an "American" car for the purposes of what might be subject to the proposed tariffs. We'll have to wait and see on the specifics of that plan.

MattyG

Ford did it because Trump has likely got a carrot waiting for them. Possibly reducing the corporate tax rate significantly and then working with his senators and representatives to create local and state incentives just like Spence worked out with Carrier.

Thing to remember is that despite what all the legalese and agreements that NAFTA etc. represent, really Trump and his loyal base and even the broader public see him as a strongman. His influence on Twitter alone moves stock prices of corporations. Is Toyota really going to continue with its plans to build Corollas in Mexico, if it wants to sell a gigantic chunk of that planned production (200,000 units) in the USA? What if he tells people not to buy them?

This is the thing to remember. Companies will do things voluntarily if they see problems ahead through public pressure or through pending costs. And if that means Trump's Twitter tweets affect them, they're going to have second thoughts about outsourcing. The US is a very powerful and all encompassing economy. It sways and controls markets. And now the man who controls its most powerful office and his cronies can even go around Congress if they have to.

Weakening the federal congressional Ethics Office investigation team? He told them through Twitter to get back on the leash and work on dismantling Obamacare. And they did... quickly. Ford is quick on the uptake and I bet other companies will be too.

Sulu

There is a lot of backstory that we do not know about. Yes, President-elect Trump and Michigan's Republican governor Rick Snyder may have bribed Ford to cancel the Mexican plant. But businesses, especially big multinationals like Ford, do not turn on a dime, and it takes a lot in new promises to have them break existing deals (and a $1.6-billion deal is not small change).

I am thinking that what was said in the Reuters article about Nissan/Infiniti and Mercedes-Benz explains a lot of it; there was a bit in there about Ford. The market for cars in general and smaller cars in particular (and it was the compact Ford Focus that was affected by the broken Mexico deal) in the USA is sinking due to rising popularity of SUVs and CUVs, and the continued low price of gasoline.

Like FCA and Buick, Ford seems to be giving up on its (small) cars now.

It is getting difficult for automakers to sell cars, and especially small cars, profitably in Canada and the USA; but it is still possible to see a profit on SUVs and CUVs, which explains why Toyota is moving Corolla production to Mexico and replacing it with the RAV4.

Source

mmarshall

I'm not so sure it was a bribe. Trump is the type of person who speaks with authority. Just the mere threat of him saying he would pursue tariffs or other economic penalties would be enough to make many companies listen without a bribe.

bitkahuna

iTrader: (20)

the whole industry will flip and mostly burn as self-driving cars become a reality. if uber has their way there really will be little reason for most to own a vehicle.

TangoRed

Almost all major auto manufacturers are coming out with their own mobility scheme to compete with/compliment Uber, so I think the auto industry has good times ahead still.

bitkahuna

iTrader: (20)

not necessarily... when the music stops the demand for autos will be vastly less than today on a per capita basis. imagine one self-driving car per 5 households, vs. today. and if they're electric, and also because they will rarely ever crash, they will last for hundreds of thousands of miles and possibly decades.

Toys4RJill

I believe it will be the complete opposite. The more electronic and self serving the vehicle becomes, the sooner one will have to update the device. Similar to a computer or cell phone.

Vladi

"How to keep domestic jobs" by Corruption in socialism 101:

This is straight from the handbook employed all over some socialist market European states and many South American and Asian countries as well. Ford got promised federal subsidies or enormous tax breaks for the jobs. I won't be surprised if federal government will be covering all the benefits, 401k, etc. for each of 700 jobs as well for a year or something like that. And it will get to that at some point.

Either way your and our money went to Ford to make these jobs stay in US. All that talk about taxing the Mexican import is just demagogue talk to cut the deal. Be very careful with those CEOs in the government, they are in for themselves and they are ready to cut the deal with anyone just to get their share back from them under the table. That's how it works.

mmarshall

Respectfully, I have to disagree with at least part of your statement here. While there is certainly nothing wrong with tax breaks as an incentive for auto manufacturers to keep jobs in the U.S., that doesn't seem to be the primary motive here. Ford may, in fact, GET tax breaks, but a far more effective motive is simply Trump's threats of a 35% import-tariff. The Focus and Festiva already have reputation for clunky and troublesome automatic transmissions, and have been taken off Consumer Reports' Recommended list. The mere thought of an import-tariff that size on Mexican-built versions, adding to the price, will only make the car less desirable and more expensive. I'm not saying that Focus sales would necessarily dry up overnight, as it is a popular small car, even with the transmission problems. But a significant price increase will definitely not do it any good, and both Ford and Trump know that.

Just a technicality, but CEOs in the U.S. Government are called Agency Chiefs or Department Secretaries.

Toys4RJill

Tax breaks are needed. Its very difficult to compete on a level playing field.

dicer

700 million for 700 jobs, just give each person a million and move on.