Sunday, January 29, 2017

The economy and the money, honey, I shrunk the German cars – FOCUS Online

the economy and the money, honey, I shrunk the German cars

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trump’s Declaration of war on BMW, Daimler & co. and the Silence of German car bosses.

The new German car of the year would have been so nice. Global sales of passenger Cars should increase to a staggering 83.6 million, two percent more than in 2016. Even in the US, the Germans, the Diesel scandal, Despite have driven their production 2016 850 000 Cars high, three times as many as in 2010. And you have to hope for more. No, you had hope for more. Before Donald Trump came to Power.

The new U.S. President has defined policy. Via Tweet it widely used commands. If he reaches for the Smartphone and its 140-character messages via Twitter in the digital orbit, shoots, members of the management Board expect the re-location decisions to revise or billions in new Jobs invest. And the most powerful man in the world doesn’t think to leave in the future, his infamous Tweets. “I can make bing, bing, bing and I just continued,” he told the “Bild”newspaper.

Mexico’s car boom are based on low wages and good infrastructure

in the auto industry in 2017, therefore, the Trump of the year, a year of destiny. It is the hour of the Einflüsterer and the discrete strategists. Who has access to the Team of the US President? Who can forge alliances between competing auto makers to his Brachial Patriotism to oppose something?

Trump has scared the industry deeply. “If you build a factory in Mexico and cars in the USA want to sell a 35-percent tax, then you can forget it,” hurls it via the “image” in the direction of BMW , and laid in San Luis Potosí, Mexico the Foundation stone for a production. The free trade agreement Nafta between the USA, Mexico and Canada want to spoil Trump beer. He makes Seriously, the damage is horrendous.

Grim memories. Import barriers, stopped in 1930, the recovery of the US economy and led to the world trade collapsed. Then, as now, supported the right clerical rural circles, the intention of the draw bridges to the supposedly evil world outside of the United States. Only US farmers duties, then a industry is called after the other, protection against foreign competition. Other countries followed suit. Within three years, the world trade collapsed by two-thirds.

A fear scenario for the industry. Now revenge, that it missed the car manufacturer in the election campaign, contacts with the Trump Team. BMW, the President of the attack, in particular, is working with the Albright Stonebridge Group, a Consulting firm of former democratic US Secretary of state Madeleine Albright. The lobbyists from Cassidy and Associates for the Munich on-the-go, it is also more likely in the direction of the Democrats-oriented. The manufacturers used for eight years, his channels to the Obama Administration and had four years under Hillary Clinton.

The perplexity among the advisors is great – however, not only in the case of BMW: “Our contacts to the Republicans to help us,” complains the representative of another group. “The man moves completely outside of the party structures.” Soon, Trump will have a change of pace back, he hopes, when the tough mechanisms of Administration would determine its agenda.

But wait and hope that Trumps edges in the everyday business grind – this strategy could also fail miserably. The manufacturers are dependent on open borders. You need international locations to protect themselves against exchange rate fluctuations, in order to save on Transport costs – and, of course, because they want to benefit from the low wages in less-developed regions.

Not only BMW, Nissan , Toyota of , Honda, Ford , General Motors , Fiat of , Chrysler, and others rely on good infrastructure and favorable geographical location of Mexico. In the past year alone in Mexico 3.46 million cars were manufactured, 2.77 million of which were destined for Export.

Three out of four Mexican Cars, which were sold abroad, went to the United States. 720 000 jobs in Mexico depend on the auto industry. “Hecho en Mexico” (made in Mexico) stands for good quality in terms of wages from three dollars per hour. In the USA, the manufacturers figures are more than 20 times as much.

And now? Donald Trumps brute Occur, could cause the industry to a counter-offensive, but the companies can be divided. GM Boss Mary Barra announced further investments in the United States, but, in principle, to the production in Mexico. Meanwhile, Ford is cancelling the plans for a 1.6 billion Dollar factory.

The workers in the factory in Flat Rock, Michigan, where the capacity now for 700 million dollars to be increased, will be happy. In Mexico, by contrast, shows what dynamics can develop protectionist decisions: Two great local companies announced their intention to no Ford Cars more buy – in Anger over the disappointed hopes of thousands of Jobs in their own country.

the Background to the decision by Ford CEO Mark Fields might be less in the plans of Trumps, but the threat of Overcapacity. The sales of three Ford sedans-models, from Mexican production fell last year by almost 13 percent. “Fields is glad, thanks to Trump from the Mexico number to get out,” he says one industry expert.

To the outside appears to be the decision of Ford but like a cave. Also, the German industry Association VDA is defensive. Matthias Wissmann, President of praised the of Trump’s announcement of tax cuts and infrastructure projects. The Ex-CDU politician emphasized at the auto show in Detroit, while well-behaved, the role of the German manufacturer, as an employer, further discussions or negotiations with the Trump Team did not seem to be currently. The Association hopes to have the insight of the Republicans. Not have already some of the leaders on the side of the German car maker?


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