By on June 6, 2019

China has fined Ford Motor Company’s main joint venture in the country, Changan Ford Automobile Co., over antitrust violations. However, the more likely scenario is that the People’s Republic is trying to flex some muscle after the Trump administration declared a ban on doing business with Huawei, the world’s largest telecommunications provider, on national security grounds.

The oversimplified gist of the situation is that America doesn’t trust a telecom firm with direct ties to the Chinese Communist Party that could easily be tapped by the Chinese government for espionage. Several countries banned Huawei equipment earlier this year after the U.S. Justice Department unsealed a raft of indictments, included 23 counts pertaining to the alleged theft of intellectual property, obstruction of justice, and fraud relating to sanctions against Iran.  (Find Out…)

By on May 30, 2019

It’s been nearly a year since President Donald Trump and European Commission President Jean-Claude Juncker kissed and negotiated a temporary truce aimed at buying the United States and the EU time to renegotiate their positions without fear of new tariffs.

Unfortunately, it seems everyone had better things to do following the smooch. (Find Out…)

By on May 22, 2019

Guangzhou Automobile Group, better known as GAC Motor, has delayed plans to commence sales of Chinese-branded cars in the United States. Apparently, there’s some kind of trade dispute between the the two countries that influenced the company’s decision.

However, back in 2018, GAC Motor was at the North American International Auto Show telling yours truly that it planned to ship product to the U.S. as early as the following year (as PR reps simultaneously requested we stop commenting on the faux tailpipes we noticed on several models).

Months later, GAC revised its business plan. The entry into the America market would come closer to 2020, it said. Now, the automaker claims the trade war has forced it to postpone things even further. This time, there’s no target. (Find Out…)

By on May 21, 2019

While it’s difficult to muster sympathy for giant corporations, the trade war current raging between the United States and China has left many stuck in an industrial limbo. Automakers want a bigger slice of the global market, but putting your eggs in either country’s basket will result in repercussions from the other.

We’re not saying this to promote some kind of commiseration for multinational companies; rather, it’s simply to remind everyone of how the auto industry has to conduct its business. Frequently, carmakers must play both sides. Toyota, already one of the world’s largest automakers, knows this better than anyone, and new documents shed light on some of the cloak-and-dagger aspects of maintaining its high-volume position.  (Find Out…)

By on May 10, 2019

Following an announcement that trade discussions with China had effectively broken down, President Donald Trump increased tariffs on $200 billion in goods from the country on Friday. The White House also issued an ultimatum, saying Beijing had about a month to reach an agreement before the U.S. enacts another 25-percent duty on $325 billion previously unaffected Chinese imports.

White the trade war has been in full swing for most of Trump’s time in office, the White House had indicated that discussions with China were progressing at the start of May. That changed after the People’s Republic returned a modified trade agreement that removed much of the legal language that would have made it binding while reneging on other aspects U.S. negotiators already assumed were settled. President Trump cited the backtracking as the primary reason for imposing a new round of tariffs.

Fortunately, the U.S. International Trade Commission said the tariff hike would only affect $2.3 billion worth of automotive goods — ranking them 10th on the list overall.  (Find Out…)

By on May 9, 2019

Even though the United States plans to impose heftier trade duties on China tomorrow, and vice versa, automakers remain confident that the White House will decide to delay the hiking of other automotive tariffs on national security grounds.

The Commerce Department submitted its Section 232 national security report in February, leaving President Trump until May 18 to act. But manufacturers believe the preferred move will be to postpone the final decision another six months.  (Find Out…)

By on May 8, 2019

The United States made good on a threat to impose higher tariffs on a new raft of Chinese goods Wednesday, days after the the People’s Republic reportedly backtracked on nearly every element of a draft trade deal hammered out by the two countries.

The 25 percent tariff officially hits $200 billion worth of Chinese goods on Friday, according to a Federal Register notice. As we told you yesterday, U.S. trade representatives reportedly took issue with China’s reluctance to change its laws to protect the intellectual property rights of U.S. companies. (Find Out…)

By on May 7, 2019

The United States could impose a 25 percent import tariff on $200 billion worth of Chinese goods by the end of this week — the result of threats issued by President Donald Trump following a reported about-face on the part of Chinese officials negotiating a new trade deal with the U.S.

At the core of the dispute? Intellectual property rights, sources claim. (Find Out…)

By on April 23, 2019

Last summer, the European Union imposed an additional 25-percent import duty on top of the existing 6-percent tariff levied on large motorcycles. Established as a response to the United States’ duties on steel and aluminum, the move crippled Harley-Davidson’s ability to thrive in the European market — a region that accounts for about one-sixth of its global volume.

While much of the media is focused on framing Donald Trump for Harley’s plight, the situation is a little more complicated. The president’s tariffs did indeed spur the EU’s retaliatory fees, but it was Europe that decided to place its crosshairs upon the iconically American motorcycle brand. (Find Out…)

By on April 4, 2019

On Thursday, President Donald Trump threatened to impose tariffs on cars entering the United States from Mexico if the nation doesn’t assist Washington in dealing with the migrant situation at its southern border. It’s a rather bold ultimatum, coming hot on the heels of claims that the White House was seriously considering closing the border entirely if Mexico could not curtail the flow of illegal immigrants and drugs heading north.

It’s an interesting situation, especially considering both outcomes would upend the automotive industry. But Trump argues that the growing reliance on Mexican manufacturing and proliferation of illegal immigrants has already hurt the United States badly. A contentious stance, for sure, but these are issues in need of thorough discussion. Gallup polls repeatedly peg immigration as one of the issues voters care most about — along with healthcare and the economy.

However, we only care about those things tangentially. It’s all about the cars for us.  (Find Out…)

By on March 3, 2019

U.S. Trade Representative Robert Lighthizer will be in Michigan this week to meet with union leaders from United Auto Workers in a bit to gain their approval for the Trump administration’s new North American free trade deal. Lighthizer is scheduled to meet with union officials in Dearborn on Tuesday to answer questions about the United States-Mexico-Canada Agreement (USMCA) while simultaneously drumming up support.

The USMCA deal suggests increasing existing requirements for North American content for vehicles, stipulating that 40 percent of a vehicle’s overall content be manufactured in areas paying at least $16 an hour, while also encouraging Mexico to tailor its labor rules to allow unions to wield legitimate collective bargaining powers.  (Find Out…)

By on February 20, 2019

Earlier this week, the European Union warned that if the United States imposes any new tariffs on European-built vehicles, it can expect similar levies on American products. However, armed with the Commerce Department’s confidential report on automotive imports, President Donald Trump doesn’t appear remotely interested in backing down.

While Trump previously agreed not to impose additional duties on European cars, the arrangement hinged upon the two coming together on trade. Unfortunately, while both sides seem eager to work out a deal, they can’t quite manage to keep the constant threats down to a dull roar.  (Find Out…)

By on February 13, 2019

Ford Motor Company has reportedly informed British Prime Minister Theresa May of its tentative plan to move out of the United Kingdom. The automaker explained the situation to May during a private call with business leaders tasked with assessing how Brexit might impact the economy. Ford said it was already preparing to move its facilities — which include two engine plants, a transmission factory, and an R&D center — abroad.

With the European Union and British government still unable to establish trade terms, automakers are having a panic attack. Ford later told that a no-deal Brexit would be catastrophic for its European-based businesses, citing earlier claims that it would cost the manufacturer up to $1 billion. (Find Out…)

By on January 31, 2019

With the United States’ government shutdown now over, lawmakers have an opportunity to work together as promised. Interestingly, one of the first pieces of bipartisan legislation to emerge after the federal bureaucracy resumed operations involves a plan to severely limit presidential authority to impose tariffs for national security reasons.

The Bicameral Congressional Trade Authority Act, introduced by Senators Patrick Toomey (R-PA) and Mark Warner (D-VA), along with House Representatives Mike Gallagher (R-WI) and Ron Kind (D-WI), would require the president to get approval from Congress before taking any trade actions based on national security threats. If passed into law, the bill would let the Legislative Branch effectively block the tariffs being proposed by the Trump administration on automobiles and automotive parts.  (Find Out…)

By on December 14, 2018

China announced Friday its intent to reduce tariffs on imports of American-made cars as it tries to negotiate a trade deal with the United States. As you’ll recall, the People’s Republic imposed additional punitive tariffs on U.S. cars and auto parts earlier this year after promising it would lower the trade barriers on a global scale.

Things look to be different this time around. China has already taken steps to scale back the trade war and appears ready to continue down that path. Earlier this month, President Donald Trump and Chinese President Xi Jinping agreed to a truce in the trade war at their meeting in Argentina. This was followed by an announcement, via Trump’s Twitter account, claiming China had agreed to scale back auto tariffs against the United States(Find Out…)

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