Autos: "It's impossible to be profitable tomorrow"

[speak easy]

Canada, Mexico Want America to Feel the Pain of Tariffs Too

Supply chains in the highly integrated auto sector face significant disruption because tariffs have an expansive impact. Mexico supplied about 42% of U.S. imports of auto parts last year and Canada almost 13%. With auto parts going back and forth among the three countries several times, tariff costs risk surging well above 25%, industry experts say.

“Trump is taking aim at Canada and Mexico, but it’s a direct hit on Michigan, Ohio, Indiana, Tennessee, any state where they make autos,” said Flavio Volpe, president of Canada’s Auto Parts Manufacturers’ Association. “It’s impossible to be profitable tomorrow with tariffs on Canadian and Mexican parts. And the only thing more impossible is to replace them within 18 to 24 months.”

WSJ

[Buckeyeblue]

1. It's crazy the way cars are made

It would be interesting to know the total cost of the shipping of parts back and forth. That has to be significant.

[speak easy]

3. "the total cost of the shipping of parts back and forth"

Perhaps less than you might think given the economies of scale from shipping in standardized containers.

[underpants]

2. Car Max stock has gone up about 10% in the last week and a half

$75 January 22
85.64 now

[yardwork]

10. That's all that matters to the billionaires.

They won either way. And they can easily afford expensive cars.

[underpants]

12. In a weird way our car market may become like Cuba

We own stock in Carmax by the way.

At least for a while unless people are willing to buy new cars at whatever all the tariffs total up to on parts auto inventory will be domestic only. Cars that are already here. Auto dealers will be able increase prices on what they currently have too.

Another thing to watch is copper. We make little copper here apparently. That means more for scrap copper which could lead more crime especially on rental property.

[yardwork]

13. Unfortunately, we'll be stuck with boring cars.

At least Cuba got stuck with really cool looking cars.

[Ocelot II]

4. Well, we won't be able to afford new cars, if we can even get them -

and for those of us who are driving old cars, we won't be able to afford or get parts for them.

[speak easy]

6. so much winning

[Ocelot II]

7. But Trump voters won't be able to drive at all

when the leopards have eaten their faces, so that should reduce demand quite a bit, maybe keep prices down...

[yardwork]

9. They'll blame Obama.

[speak easy]

11. "'He's not hurting the people he needs to be hurting

https://www.msnbc.com/rachel-maddow-show/trump-voter-hes-not-hurting-the-people-he-needs-be-hurting-msna1181316

[yardwork]

14. That article is from 2019. None of those people learned a thing.

They lined up to vote Trump back in. It's a cult.

[dalton99a]

5. Car insurance will go up because of repair/replacement costs. And car thefts will go up

[yardwork]

8. Every one of those states voted majority for Trump.

So did my state. I know that there are good Democrats everywhere, but I'm so angry at the horrible people who voted for Trump. It's hard for me to feel sympathy today.

[OneGrassRoot]

15. My ex ridiculed me...

for ending my lease early, in December, when it was scheduled to be done in May 2025. I knew that even if Trump didn't actually start tariffs, his nonstop bloviating threats would have a similar effect, causing prices to skyrocket. Add another pandemic to the mix, and the supply chain situation sounds dire.

When he asked why I ended the lease early I told him because of the likely tariffs. He rolled his eyes and said "That's ridiculous. He isn't going to do anything with tariffs."

He's conservative. Of course. We've been divorced for over 20 years but my daughter's family, he and I live within minutes of one another. I may see him today and plan to be snarky AF. So tired of conservative men always insinuating I'm stupid when, in the long run, I have always been right. About everything. lolol