Toyota: Camry would see a cost increase of about $1,800 which would be passed on to buyers

[dalton99a]

https://www.freep.com/story/money/cars/general-motors/2018/06/29/gm-toyota-jobs-trump-tariffs/746611002/

GM, Toyota warn of job cuts if Trump imposes auto tariffs
Jamie L. LaReau, Detroit Free Press
Published 4:35 p.m. ET June 29, 2018

In a stern warning to the U.S. government, General Motors said Friday it would have to slash jobs if the Trump administration expands U.S. tariffs on imported vehicles.

GM filed its statement Friday to the Department of Commerce in response to President Donald Trump's call for the department to investigate whether auto imports pose a threat to national security. Trump has threatened a 25 percent tax on imported cars and car parts.

"If import tariffs on automobiles are not tailored to specifically advance the objectives of the economic and national security goals of the United States, increased import tariffs could lead to a smaller GM, a reduced presence at home and abroad" for GM and, "risk less — not more — U.S. jobs," the Detroit automaker said.

Likewise, Toyota also filed comments Thursday saying tariffs would increase its costs to build cars at its manufacturing plants in the U.S. and undermine U.S. national security.

It warned that the potential tariff on cars and parts would have a negative impact on all manufacturers, increasing the cost of imported vehicles as well as those built in the U.S., but rely on parts from overseas.

It gave, as example, the Toyota Camry sedan, built in Kentucky but about a third of its parts are imported. The Camry would see a cost increase of about $1,800,which would be passed on to buyers in the form of higher prices, Toyota said.

"General Motors and Toyota were unusually vocal about the impact on the threatened tariffs," said Michelle Krebs, executive analyst for AutoTrader in Detroit. "Their comments illustrate clearly how severe the tariffs could be on their companies, their employees and consumers if they are enacted.

"We have not estimated the cost of tariffs in terms of sales, but ... the hit would be big if we a full-blown trade war erupts."

Friday was the deadline for comments on the proposed tariffs.

Earlier this week, the Alliance of Automobile Manufacturers, a Washington, D.C.-based trade group that represents General Motors, Ford, Fiat Chrysler, Toyota, Volkswagen and other automakers, sent comments to the Commerce Department. It argued that raising tariffs on imported autos and auto parts is "not the right approach" to balance trade and cautioning that it could hurt investment and jobs at a time when auto sales are flattening. It could also result in higher car prices for all consumers and limit buyer's options.

[Hoyt]

1. That 1,800, whether spent on foreign or domestic cars, is $1,800 not

available for other things folks need, including domestic and local products.

[GulfCoast66]

11. Stop it Hoyt!

How dare you bring facts into an emotional, xenophobic argument.

[mr_lebowski]

2. To which Grump replies ...

The poorer everyone is, the more willing they'll be to work crap jobs for low pay, enriching me and my cronies! Everyone tells me how beautiful this plan is, believe me. People LOVE it! MAGA! WINNING!

[mitch96]

3. If that happens.........

I can see the price of USED/PRE OWNED autos going up also... Why buy new when you can buy a good preowned reliable auto for a lot less than new..
Then again buyer be aware.. buy smart and get the car inspected by a trusted mechanic...
m

[Ohiogal]

6. Exactly!

There's going to be a bigger demand for used cars from this policy, so of course their prices will be jacked up, too.

Guess I'd better hang on to my 12 year old Corolla..... It has served me well, I'd be foolish to get rid of it now.

[mitch96]

8. "Guess I'd better hang on to my 12 year old Corolla.."

Me too. I'm a Honda guy.. Cars and bikes for years... I'm lucky I don't drive much.. My 2013 Honda Civic just turned 30,000 miles...
m

[Nonhlanhla]

10. I plan to drive my Honda for the rest of my life

It's a 2006 CRV. I bought it secondhand in 2009 with 17,000 miles already on it, and after another 9 years she still has only about 65,000 miles on her. I love that car!

[TheBlackAdder]

7. Just watch if they pass via Texas and Colorado--known for washing flood damaged salvage titles.

[Initech]

4. Hey billionaires! If nobody has any money, nobody will be able to buy your crap!

And you'll go broke too! Get how that works? No? Fuck you!

[krispos42]

5. Tariffs need to be imposed gradually so the markets can adjust

If this was phased in over a decade it wouldn't be such an issue because there would be time to create domestic sources.

But this shit where D2S gives a week or two notice is as screwing everything up!