The price of US cars in Europe has nothing to do with tariffs, it has
however a lot to do with market positionning.
The only tariff applied to cars coming from outside Europe is a 10% tax, and
that's it. Granted, our sales taxes are very high (around 20%) compared to
the US, but they do affect every car manufacturer.
The Chrysler 300C taken for example below, is marketed here as an exclusive
and classy alternative to german high-end sedans, and thus priced
accordingly. Do not forget that DaimlerChrysler owns Mercedes, so pricing
the 300C too low would hurt Mercedes sales. Furthermore, the models sold in
Europe are loaded with options, so I'm not sure the price can be compared so
easily.
As a counter example, take the Chrysler Voyager (aka Dodge Caravan in the
US). It is sold in Europe right smack in the price field of its european
competitors.
Vincent Van Humbeeck
'58 Plymouth Belvedere 2-door hardtop
-----Message d'origine-----
De : Forward Look Mopar Discussion List [mailto:L-FORWARDLOOK@xxxxxxxxxxxxx]
De la part de Jim Hoekendijk
Envoyé : samedi 4 février 2006 12:03
À : L-FORWARDLOOK@xxxxxxxxxxxxx
Objet : Re: [FWDLK] 1958 Dodge Production
To give you an idea of how much a USA car costs here in The Netherlands
compared to the USA.
Chrysler 300C 2.7i V6
USA MSRP: $24,200
Netherlands MSRP $33,647 ex tax $53,400 including tax
Chrysler 300C SRT-8 6.1i HEMI
USA MSRP: $42,695
Netherlands MSRP $61,033 ex tax $98,280 including tax
That's more then twice as much, right?
Jim Hoekendijk
The Netherlands
57 Dodge D500
-----Oorspronkelijk bericht-----
Van: Forward Look Mopar Discussion List [mailto:L-FORWARDLOOK@xxxxxxxxxxxxx]
Namens David Homstad
Verzonden: zaterdag 4 februari 2006 10:07
Aan: L-FORWARDLOOK@xxxxxxxxxxxxx
Onderwerp: Re: [FWDLK] 1958 Dodge Production
This subject of Imports really is one of my pet peeves. The US has a great
trade deficit, which is primarily due to 2 issues. The lower cost of labor
is one, but that is nothing we can do much about. The other is what I
consider unfair trade practices with most other countries. The US generally
has low or no tariffs on imports, when compared to other countries. Ever try
to import a US car into Japan? Their tariffs are like 50 or 100%! My
suggestion is that the US should have a law that imposes the same tariff on
other countries goods that they impose on ours. The other country sets the
tariff. We just use their number. If Japan's tariff is 50% on US cars, then
ours is 50% on Japanese cars. If US goods were available with lower tariffs,
they would be cheaper and sell better, lower the trade deficit and increase
jobs in the US.
Another issue is corporate income taxes. Everybody thinks that since the
Japanese build cars in the US, they pay corporate taxes here like everybody
else. They pay little or no taxes. They simply buy a few car parts from
Japan at many times their real value, say a transmission at $5000. All the
profit goes to Japan and the US based division makes no profit, and thus
pays no taxes. The real reason Japan builds cars here is that the cost of
labor and shipping from Japan is actually higher than the cost of building
cars here. Notice that they always build their plants in low labor cost
areas of the country where the UAW union is non-existent?
Dave Homstad
56 Dodge D500
-----Original Message-----
From: Forward Look Mopar Discussion List
[mailto:L-FORWARDLOOK@xxxxxxxxxxxxx]On Behalf Of Bill Watson
Sent: Friday, February 03, 2006 8:30 AM
To: L-FORWARDLOOK@xxxxxxxxxxxxx
Subject: Re: [FWDLK] 1958 Dodge Production
You are right about CKD, but do not understand the term "dumping".
"Dumping" is where a country exports goods to other markets at prices lower
than sold on the home market. And, no, you cannot "dump" product in the
United States as the American government does go after any country fhey
perceive as "dumping" goods, real or imagined. The "imagined" dumping
arises when the American government decides to support an industry that is
having difficulty keeping its head above water - the steel industry, for
example.
The United States of America most certainly does have import duties on
imported vehicles, which is why Honda, Toyota, Nissan, etc. have opened
assembly plants in the U.S. For the more popular models, it is more
economical to assemble vehicles in the U.S. with parts from American
suppliers along with some imported parts than to get nailed with import
tariffs on the whole vehicle. So the United States market is not so
different from Australia, etc. except that the import duties are not as
high.
The United States of America is the only country I know of that has a
special VIN digit to denote vehicles assembled in the United States with
mostly imported parts - "4". The first digit on the VIN adopted for the
1981 models year for cars sold in North America denotes the country of
origin., When Diamond-Star first started building cars for Mitsubishi and
Chrysler they had to use "4" as the first digit of the VIN as they used more
imported parts than American. ("1" is for the United States, "2" for
Canada, "3" for Mexico, "6" for Australia, "9" for Brazil while letters are
used for European and Asian countries.)
The British assembly plant at Kew assembled vehicles using imported bodies,
chassis, drivetrain, glass, etc. and used British suppliers for its 12-volt
electrical systems, leather interiors and other bits. British auto
manufacturers were really into leather back then. And during the 1930's
Chrysler Great Britain had a unique serial number for each vehicle they
built, along with the American or Canadian serial number.
The Canadian plant was the first foreign plant to get away from CKD
production (actually started back in the Maxwell days). Australia was next
in 1957 with the Chrysler Royal but Mexico, South Africa, and South America
did not get away from CKD production and into true local production until
the late 1960's.
British auto manufacturers also got into CKD manufacturing with foreign
licencees - the first Datsun in 1932 was based on the Austin 7, as was the
BMW Dixie. The first Datsun cars sold in North America in the early 1960's,
the Bluebird, clearly showed their Austin heritage in the engine
compartment.and body styling. Isuzu started building Hillman Minx cars in
Japan in the 1950's and many Hillman owners look to more moden Isuzu engines
and transmissions for their cars as they bolt in with very little
modification. Mitrsubishi built the Henry J car and the Willys Jeep for
Asian markets while Hino built the Renault 4CV in the 1950's and 1960's.
The first Nissan, by the way, was introduced in late 1937 using the tooling
for the Graham Crusader purchased from Graham-Paige.
By the way when bodies in CKD package are shipped to a plant that does the
final paint coat, the bodies are referred to as "body in white". As CKD
shipments are usually done by ship, steel parts cannot be shpped unprotected
from the elements. Thus they are painted white before shipping to protect
the metal against the salt air during transport.
Bill
Vancouver, BC
----- Original Message -----
From: Marv Raguse
To: L-FORWARDLOOK@xxxxxxxxxxxxx
Sent: Friday, February 03, 2006 4:16 AM
Subject: Re: [FWDLK] 1958 Dodge Production
In a message dated 2/3/2006 3:28:40 AM Eastern Standard Time,
esierraadj@xxxxxxxxx writes:
How did all the materials and componentry, for the Belgium-made cars GET to
the Belgium assembly plant?
Were there 'duplicate' fabrication facilities, in Europe, or, in essence,
were un-assembled cars sent there, to be assembled?
CKD refers to "Completely Knocked Down" vehicle. Parts are stacked and
shipped in boxes perhaps as many as 15 to 20 sets of parts in each box. Now
it may take 10 or more boxes to complete the vehicles but that is how they
go to the place of assembly. At the assembly facility the boxes would/will
be opened and parts stacked along the line. Frequently some parts are sent
in assembly alreadyif it makes logistical sense and the import rules allow.
You can have "Partial Knock Down" also. Local tariff requirements often
dictate. Only the good ole US is an open market where anyone can dump. Some
tariffs are 50% and more. Imagine if an imported Toyota cost that much more
over here. Or we manadated local content,not NAFTA. How many would they
sell? Chrysler has, from time to time, CKD'd all around the world.
Recently like Thailand for example. Chrysler CKD'd Jeeps there. Latin
America for trucks and Jeeps. Alot of content goes to Graz, Austria for
Jeeps and Voyager Minivans. Haven't assembled in Belgium or Kew GB in many
years..Also many countries specify how much content must be local and how
much assembly must be local.
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