“We don’t want competition, especially competition that might undercut our ATP and GP increasing to infinity strategy”
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Without getting too far into geopolitics, there is some merit to the tariff policy.
[sidebar] After the American Revolution, the US put high tariffs on British imports, as they knew Britain would try to undermine the American economy and keep it a vassal economic state, even though the military war had been lost. That policy was later extended to other European countries as Britain tried to use them to hide the true origin of materials. And from those tariffs the Americans had to build their own factories to produce shovels and farm implements, certain foodstuffs as were able to be grown, and so on. [/sidebar]
The Chinese have been dumping solar panels in the US (and around the world) collapsing any hope for US manufacturing here. The Koreans did the same with flat-panel displays to the point where there are scarcely any American flat panel manufacturers left. Maybe that doesn’t sound like a big deal until you realize that they are a vital part of jet aircraft, artillery targeting, and modern naval vessels - and we have lost the technology to make them .
Maybe “cars” aren’t that important, although every country that wants to have an advanced economy needs to have car manufacturing as a major, often first, component. Letting the Chinese destroy a major American industry (as Japanese steel did to another) is not a prescription for the health of the country, although it might take a decade or two to show up.
But then once it does, it’s too late. Steve Jobs noted there was no way to bring iPhone manufacturing back to the US; all the suppliers and sub-suppliers were in Taiwan and China; you simply couldn’t resurrect that industry here without billions (trillions?) in direct support and even then it would be a crapshoot.
So it could be with auto production, particularly EV production, which (eventually) will also have military applications as well as fundamental economic ones.
It will be a tragedy if US manufacturers don’t take the opportunity of “a breathing window” to improve their products, however I won’t be surprised if the short-term thinking that pervades American business won’t lead them to quarterly profit instead of long-term health. But that’s a successor issue, not the main one for now.
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If our companies were still run by engineering and design (like GM used to be, ditto Boeing) then they would. However you are right to be skeptical. The bean counters will see breathing room to keep quality mediocre and profits (and hence bonuses) high.
Thing is, GM and Ford are global companies. They are not as global as they used to be, thanks to Welchian highgrading, but they are not small, resource starved, US only, firms, struggling to survive. Ford still competes in the EU. GM and Ford both compete in China.
Steve
By 2009, it became evident that a dedicated factory was necessary to support our growing business. Consequently, in 2010, we set up a production facility in Alpharetta, Georgia, within the greater Atlanta Area. This expansion, coupled with additional company infrastructure such as a new engineering facility in Great Neck, enabled us to offer solutions for larger production programs.
Mike
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Yes, there are a pitiful few, and they are small. If you want to get a view of this worldwide business, just scroll down the list of flat panel manufacturers here on Wikipedia. You don’t even have to concentrate, they helpfully put a little flag next to each company.
Notice anything?
Here, let me help:
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Not very well…
This is true. Jeep withdrew entirely from China a couple years ago. The European brands, including long time market leader, VW, are also losing market share.
So, what is Ford and GM’s takeaway from their failing to compete effectively in China, and several other markets in the world? Retrench to the US, and hide behind government protection. Great role models, these “free market capitalists”, eh?
Steve
European brands still seem to do well in foreign markets outside of China. The US brands outside of Tesla seem to just retreat back to the US not compete interenationally as much. At least in Asia. Who are you referring to as “free market capitalists?” Certainly not the head of US automakers…
Over recent years, GM has exited the EU, India, and Austrailia.
Ford has exited India, Austrailia, and all of South America.
More Welchian “high grading”. Shrink the company down to only it’s most profitable markets, and shrink the product line offered in the remaining markets down to only the most profitable products. As production volume shrinks, close plants and lay off thousands of workers, to “right size” the company for the new business model.
Steve