AD #1995 – Daimler Makes Big EV Investment, BMW Uses Autonomy in Production, Formula 1’s New Champion

November 28th, 2016 at 11:53am

Runtime: 7:51

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- Mercedes Makes Massive EV Investment
- BMW Uses Autonomy in Manufacturing
- Infiniti Measures Brainwaves to Design Cars
- Toyota Watches Ions
- Formula One’s New Champion
- NAFTA Critical to Health of Auto Industry

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16 Comments to “AD #1995 – Daimler Makes Big EV Investment, BMW Uses Autonomy in Production, Formula 1’s New Champion”

  1. Kit Gerhart Says:

    Trump’s threat of a 35% tariff on imports from Mexico was one of many things he said that worked to get votes, but which is not likely to happen.

    I just hope the policy makers realize that the auto industry, especially GM, Ford, and FCA, are so intwined between the U.S., Canada, and Mexico, that any major change, or trade war in the region, would be very disruptive, and harmful to the industry.

  2. Badnikl Says:

    MAybe Trump will negotiate with VW for a couple plants in the US in exchange for dropping diesel fines?

  3. Albemarle Says:

    From what I have heard about Trump, I believe he is an isolationist. So exports are not part of his plan. Make in the U.S.and sell in the American market. Problem with that is that all the exports the U.S. now enjoys will become subject to punative duties from the importing countries. You can’t slap a duty without getting slapped back.

    As for NAFTA, without Mexico, the auto industry will return to a simple make and sell here for both Canada and the U. S.. But NAFTA is about much more than cars, and those bits are generally recognized as not working for anyone.

    I think Trudeau was just trying to get ahead of the curve with Trump. Seems that after Trump makes a statement, his position hardens. Better to make a soft play early so negotiations will still be possible and nothing will be said that can’t be altered. Interesting times, eh?

  4. David Sprowl Says:

    About NAFTA – We’ll see. What I do find interesting about all of the rhetoric is that prior to Jan. 1, 1994, the US auto industry was doing just fine. What I find more curious is that several great paying jobs left the county since. I’m still trying to find any product that was made more affordable by off shoring jobs. It is a semi complex issue to e sure.

  5. BobD Says:

    A fixed-rate tariff is not a good approach. The goal should be to decrease the trade imbalance with a particular country by taxing all imports sufficiently to bring the imbalance closer to zero. Further companies that ship components to Mexico, but then import the final products back should only have to pay tariffs on the net content added in Mexico. This would encourage more US content, even if the final product is assembled in Mexico.

  6. Kit Gerhart Says:

    4 Delco Electronics Division of GM, where I worked, was moving radio production to Mexico, long before NAFTA. The company’s argument to the union, was that they needed to move some jobs to a low cost country to remain competitive, so they could keep other jobs in the U.S. I’m sure that was mostly true, though the company certainly had to spin things when negotiating with the UAW.

    I don’t know the dollar volume of car-related imports of cars, and parts from Mexico, but final assembly seems to be what gets mentioned by Trump, and by the general public. John or Sean, maybe you know, but isn’t the dollar value of parts made in Mexico probably higher than the value added by assembly plants? It seems that a lot of parts are made in Mexico, including high value “parts” like engines, from GM, Ford, and FCA.

  7. Roger T Says:

    Mercedes investing in electric cars – the disconnect with MB’s plan is that I don’t think their dealers recognize electric cars as opportunities. I just returned my MB I had as a lease, and they had no B class in stock. And we’re talking about one of the largest MB markets (south Florida). Perhaps if they had a compelling electric product lineup dealers would be more enthusiastic but I tell you they are not at the moment.

  8. Lisk Says:

    Are there any hard facts on the number of jobs lost as manufacturing moved to Mexico? I would have to think the direct impact would be in the 100,000+ neighborhood?? If the jobs return to the U.S., I would think the numbers would be far less, as I would think a lot of factories built in Mexico are far more automated than the ones they replaced in the U.S..

  9. Kit Gerhart Says:

    #7, Roger
    I didn’t know M-B ever even sold the B-Class in the U.S. Did they?

    Probably M-B’s big EV push, at least for now, is for markets other than the U.S., unless they make an electric S-Class to compete with the Tesla S.

  10. gary susie Says:

    Get out the history books and see what happened when tariffs were added on to keep jobs here. Doesn’t work. I hate to see jobs go to another country because management says the workers pay is to high. So why don’t those at the top cut back and share the pain to. Our executives are some of the highest paid in the world.

  11. Brett Says:

    Why is globalism a “good thing”. Not for capitalists, but for Joe Lunchbucket. Because TVs are cheap? Too bad that since his factory job left for Indonesia, he’s working cleaning offices at night and at the local 7-11 until dawn trying to keep his house that’s worth half what he owes on it and feed his family.

  12. Tom Says:

    John

    I don’t watch Autoline to get your political view.

    Tom

  13. Kit Gerhart Says:

    The remaining factories in the U.S. are much more automated, and use a lot fewer workers per car, widget, etc., than they once did. The factories in China, Mexico, and other low wage countries use more workers, because labor is cheap.

  14. G.A.Branigan Says:

    This is my take on the mexico tariff,Trump will drop the tax IF mexico builds and maintains the wall/fence,built to OUR specs.

    2nd,make mexico tighten up all of their borders to stop the human flow from central america and other countries.

    3rd,mexico declares war on all drug cartels operating within their borders.

    For dealing with Canada,keep that punk trudeau up there.

  15. Kit Gerhart Says:

    If Trump builds his wall, it will increase the number of Mexicans in the U.S. The net flow has been southbound, since the great recession.

    http://www.pewhispanic.org/2015/11/19/more-mexicans-leaving-than-coming-to-the-u-s/

  16. XA351GT Says:

    The problem with our trade policies are while we have a “free” trade policy with other nations they do not with us. Example is Japan. US imports into the country are near non existent. There are years long waiting lists to buy Harleys in Japan. Maybe the US needs to adopt a mirror trade policy. In other words will trade with you exactly as you do with US. Could you see the Japanese car market if we limited ALL Japanese imports to a puny number for the year? Japan has 5 auto companies to our 2 1/2 They have 4 major motorcycle companies to our one. If Chinese companies want to build or sell cars here they would need to pair up with a US company and GIVE them any and all technology secrets. Hear how stupid that sounds??That is what is happening just with 2 countries . How many do we deal with all over the world who do not trade fairly with us?