Tag Archives: center for automotive research

Trump Mexican Tariffs – Negative on Prices, Economy and Jobs

The Center for Automotive Research, where I am a vice president, estimates that a 5% tariff rate would increase the price of an average new vehicle built in the United States by at least $250. At a 25% tariff rate, U.S.-built vehicle prices would rise at least $1,100. Vehicles imported from Mexico would see sharper price increases — at least $1,100 at 5% tariff rate and at least $5,400 if the tariffs were ratcheted up to 25% by this fall. Overall, the tariffs would reduce U.S. gross domestic product by at least $7 billion to $34 billion annually and cause the loss of 82,000 to 390,000 U.S. jobs.   Continue reading

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Trump Tariffs on Mexico – Job Destroying Taxes on Workers

Ultimately, prices on models imported from Mexico could increase by $8500. Factoring in parts for assembly in the US, the average price of all vehicles sold in the US could rise by as much as $2,500-3,000. the substantial increase could lower sales by 500,000-1.5 million units annually. Continue reading

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If Trump Closes the Mexican Border, the Entire U.S. Auto Industry Shuts Down in Days

There are few vehicles assembled in the United States that do not rely on Mexico for at least some parts content. Vehicle assembly is the quintessential “complete set” — an assembly plant cannot build a partial vehicle. Even if a few relatively minor parts are missing, automakers do not make a practice of storing the vehicles and then repairing them when the parts are ready. This repair work alone creates the potential for quality issues. Since it is impossible to do a partial build, the assembly plant and many of its associated supplier plants will be idle until the automaker can obtain sufficient stock to relaunch production. Continue reading

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Trump Tariffs Hurt New Auto Prices, Jobs, Consumers

NADA is worried that under a 25% tariff on all imports and parts, “consumers would see the price of the typical vehicle sold in the United States rise by $4,400. Prices of U.S.‐assembled vehicles rise due to an increase in the cost of imported vehicle parts, adding $2,270 to the price. For the typical imported vehicle, these tariffs raise consumer prices by $6,875 per vehicle.” Continue reading

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Wither US Automotive Sales? Uncertainties Abound

CAR notes that there are “many risks to the 2019 automotive outlook: Will 2019 be the start of the economic downturn? How will U.S. trade policies affect the auto industry? Will regulatory and technological developments start to change what products are made and sold in North America?” Continue reading

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Trump Tantrum on Trade Kills Jobs, Distracts from Expanding Russian Collusion Investigations and Criminal Indictments

The impact on automotive and parts production will be significant, but the magnitude of the action is not yet known. Continue reading

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NAFTA Talks Stalled. Doomed?

There are three main options if the NAFTA negotiators do not reach a new agreement: the parties could continue to negotiate, knowing that there would be limited time to get the agreement approved in all three countries; the three countries could agree to continue trading under the existing agreement; or one or more parties could withdraw from NAFTA, effectively terminating the agreement. Continue reading

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Annual CAR MBS Conference Under Way in Changing Industry

It’s summer in northern Michigan, a time when people flock there for fun, relaxations such a swimming, sailing and fine dining amid verdant rolling hills. There is, however, a significant number of people who come each year at the beginning … Continue reading

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Collision Course – Trump, Mexico, NAFTA

Despite what appears to be Trumps ill-informed trade views – if they are informed at all – CAR using data, not diatribes, observes that the major reason for this rapid growth of the auto industry in Mexico comes from the injection of $13.3 billion in investment to move 3.3 million units of vehicle capacity from Japan, Germany, and South Korea to Mexico Continue reading

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Auto Dealerships Support 2.2 Million U.S. Jobs

The CAR study, Contribution of New-Car Dealerships to the Economies of All 50 States and the United States, highlights the economic impact of U.S. new-car dealership from employment data, taxes collected or generated by dealerships to taxes paid by employees at the state and national level. Continue reading

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Distracted Drivers and Vehicle Design Briefing offered by CAR

The automotive electronics evolution has seen increasing emphasis on connected vehicle systems, driver assistance systems, and infotainment systems. Given the potential for these systems to cause huge drops in customer satisfaction, as Ford Motor learned with its My Touch and My Sync systems, it is not surprising that auto companies are now hiring people with experience in human factors engineering, human-machine interface, and mobile device technology. The latest briefing is one of a series CAR offers on relevant topics of interest to industry professionals. Continue reading

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Automobile$ Provide $91.5 Billion in $tate Tax Revenue$

The amount of revenue involved begs questions about the lack of U.S. industrial policy – alone among industrialized countries – as well as what critics say is anti industry attitudes among politicians and regulators. These critics also point to the actively hostile policies of the U.S. State and Defense Departments, which support and protect offshore automakers, while increasing taxes for U.S. based automakers. Continue reading

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The Secret of Future Success for Ex Auto Plants is Location

The study is the latest example of how devastating the collapse of the automobile industry is to the economies of local communities, many of them now with grim futures. Simply put, the best outcome for a community is to keep auto plants operating. The lack of a U.S. industrial policy – alone among all other industrialized nations and clearly a problem in the view of critics of multinational corporations – is not addressed in the study. Continue reading

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Chevrolet and Nissan Succeed with Plug-in Hybrids and EVs as the Business of Plugging In Shows First Product Results

Success is the verdict about one year after the Chevrolet Volt plug-in hybrid and Nissan Leaf EV (electric vehicle) both went on sale, it was revealed last week at the third annual Business of Plugging In Conference in Michigan. And with Cadillac, Ford, Toyota about to introduce the their own plug-in hybrids, and a pure EV version of the tiny Chevrolet Spark coming in 2013, the small niche of electric cars has the chance to grow some more. Continue reading

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The Business of Plugging In Adds EV Experts to Panels

The Center for Automotive Research is holding a timely conference – The Business of Plugging In, an electric vehicle conference – this October that will discuss the emerging plug-in electric vehicle (PEV) against a background of contentious budget debates in Washington about subsidies for automakers, global warming, emission regulations, and tax policies. Continue reading

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