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Old May 31, 2018 | 03:22 PM
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What do you think of this?

In no way do I want this to turn into a political argument, but this article has me really worried. This has not been verified yet, but it would be horrible for our beloved MB if it actually takes place. Even the tariffs on aluminum and steel have me worried. Once again, please don't turn this into a political shouting match.

https://www.cnbc.com/2018/05/31/trum...in-the-us.html
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Old May 31, 2018 | 03:46 PM
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Originally Posted by BeanTrader
In no way do I want this to turn into a political argument, but this article has me really worried. This has not been verified yet, but it would be horrible for our beloved MB if it actually takes place. Even the tariffs on aluminum and steel have me worried. Once again, please don't turn this into a political shouting match.

https://www.cnbc.com/2018/05/31/trum...in-the-us.html
This is hard not turning this into some political discussion but I will refrain—and I am a very moderate registered republican.

This will not be good for us who love our MB cars. Just say if my ‘16 S550 4matic MSRP of $137k had say a 25% tariff. That would bring the MSRP to $171k. Not good. I clearly am not in favor of paying an extra $34k for the ping pong battle going on with the tariffs. So I better stop now before I start down a political track🙂.
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Old May 31, 2018 | 03:49 PM
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Originally Posted by MTrauman


This is hard not turning this into some political discussion but I will refrain—and I am a very moderate registered republican.

This will not be good for us who love our MB cars. Just say if my ‘16 S550 4matic MSRP of $137k had say a 25% tariff. That would bring the MSRP to $171k. Not good. I clearly am not in favor of paying an extra $34k for the ping pong battle going on with the tariffs. So I better stop now before I start down a political track🙂.
I appreciate your reply. I fee the exact same way as you.
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Old May 31, 2018 | 06:01 PM
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What I wrote in a thread 2 weeks ago (since moved to the political section of the forum) is that there's a good chance it won't happen. Chances are, either Trump backs down in the face of threatened European retaliatory tariffs on US exports like ag commodities or aircraft or construction equipment, etc. OR the Germans "announce" expansions of plants in AL, SC, TN that were probably planned anyway, and then Trump can go around touting how "he" has brought X thousands of jobs from German auto companies over to the U.S.
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Old May 31, 2018 | 06:26 PM
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Originally Posted by syswei
What I wrote in a thread 2 weeks ago (since moved to the political section of the forum) is that there's a good chance it won't happen. Chances are, either Trump backs down in the face of threatened European retaliatory tariffs on US exports like ag commodities or aircraft or construction equipment, etc. OR the Germans "announce" expansions of plants in AL, SC, TN that were probably planned anyway, and then Trump can go around touting how "he" has brought X thousands of jobs from German auto companies over to the U.S.
Great points! I hope you're right. If I were to bet, I think you are right on.

Last edited by AppleFan1; May 31, 2018 at 07:21 PM.
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Old May 31, 2018 | 06:59 PM
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That would bring your MSRPs to European (German) level.
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Old May 31, 2018 | 07:44 PM
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Even without discussing politics, there is a level of stupidity on this subject matter not seen in decades.

I am hopeful that common sense prevails...
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Old May 31, 2018 | 07:47 PM
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Originally Posted by Jan AMG
That would bring your MSRPs to European (German) level.
Depends. You can get MB’s for less the US now in Germany, at least for business.
No VAT and 8-15% discounts are fairly easy. That’s an easy 30+% off MSRP...
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Old May 31, 2018 | 07:50 PM
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Originally Posted by syswei
What I wrote in a thread 2 weeks ago (since moved to the political section of the forum) is that there's a good chance it won't happen. Chances are, either Trump backs down in the face of threatened European retaliatory tariffs on US exports like ag commodities or aircraft or construction equipment, etc. OR the Germans "announce" expansions of plants in AL, SC, TN that were probably planned anyway, and then Trump can go around touting how "he" has brought X thousands of jobs from German auto companies over to the U.S.
BMW’s largest plant is already in the US. When it comes to car manufacturing there is no such thing as a single-country sourced vehicle.
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Old May 31, 2018 | 08:11 PM
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Does anyone know what fraction of American cars would compete against the bulk of German imports? When I think of these I'm thinking mid to high end MB, Audi, and BMW. An Audi A4 is around $36K.
Cadillac comes to mind. Chevy has Corvette, but I don't think of that as a luxury car and its just one car.. Ford is discontinuing just about all their sedans. Chrysler 300?
As has been pointed out, some MBs and BMWs are made in America now.
So I don't really understand how a tariff on German cars will be all that helpful to American car builders. I will admit I could be totally missing something here, I just don't know what it is.
If an S-Class became too expensive, would that buyer get an E-class or a Cadillac?

Last edited by grossmsj; May 31, 2018 at 08:17 PM. Reason: Added Chrysler
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Old May 31, 2018 | 08:28 PM
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I guess the good news for you guys that already own an S class yours would become more valuable. For those of us who don't yet bummer.

Last edited by MBNUT1; May 31, 2018 at 08:32 PM.
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Old May 31, 2018 | 08:30 PM
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Originally Posted by Wolfman

I am hopeful that common sense prevails...
We may be asking for too much. I have to be very careful what to say here, but there has been a tremendous lack of common sense lately.
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Old May 31, 2018 | 08:30 PM
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Originally Posted by grossmsj
Does anyone know what fraction of American cars would compete against the bulk of German imports? When I think of these I'm thinking mid to high end MB, Audi, and BMW. An Audi A4 is around $36K.
Cadillac comes to mind. Chevy has Corvette, but I don't think of that as a luxury car and its just one car.. Ford is discontinuing just about all their sedans. Chrysler 300?
As has been pointed out, some MBs and BMWs are made in America now.
So I don't really understand how a tariff on German cars will be all that helpful to American car builders. I will admit I could be totally missing something here, I just don't know what it is.
If an S-Class became too expensive, would that buyer get an E-class or a Cadillac?
The only one that really begins to compete is Cadillac. Lincolns are just dressed up FWD Fords.
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Old May 31, 2018 | 09:00 PM
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I believe that one of the big goals, would be to get more foreign brands to build more of their cars in the U.S. If I am not mistaken, all of the highest end sedans are built in the home countries, like the S Class, 7 Series, Lexus LS, etc. The President campaigned on bringing the jobs “back” to the U.S., and high paying auto assembly jobs are probably near the top of his list. I have no doubt that President Trump is simply making strategic chess moves at this point and I highly doubt we will ever see any long term tariffs on German cars.
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Old May 31, 2018 | 09:13 PM
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Originally Posted by Streamliner
I believe that one of the big goals, would be to get more foreign brands to build more of their cars in the U.S. If I am not mistaken, all of the highest end sedans are built in the home countries, like the S Class, 7 Series, Lexus LS, etc. The President campaigned on bringing the jobs “back” to the U.S., and high paying auto assembly jobs are probably near the top of his list. I have no doubt that President Trump is simply making strategic chess moves at this point and I highly doubt we will ever see any long term tariffs on German cars.
Let's assume for the sake of argument that Mercedes and BMW will never build their high-end models in the US. Using a tariff strategy to force that type of production would be a fools errand. More important, China is a more lucrative market for these brands than the US and the rapid "forced" change to EV tech will accelerate that.
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Old May 31, 2018 | 09:21 PM
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Originally Posted by Streamliner
I believe that one of the big goals, would be to get more foreign brands to build more of their cars in the U.S. If I am not mistaken, all of the highest end sedans are built in the home countries, like the S Class, 7 Series, Lexus LS, etc. The President campaigned on bringing the jobs “back” to the U.S., and high paying auto assembly jobs are probably near the top of his list. I have no doubt that President Trump is simply making strategic chess moves at this point and I highly doubt we will ever see any long term tariffs on German cars.

An S Class built in the US would lower it's cachet. The early C's built here were a disaster in terms of build quality. Oh course maybe they could get the assemblers to sign the engines like AMG. "Bubba ...."

Last edited by MBNUT1; May 31, 2018 at 09:26 PM.
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Old May 31, 2018 | 09:25 PM
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Originally Posted by Wolfman
Let's assume for the sake of argument that Mercedes and BMW will never build their high-end models in the US. Using a tariff strategy to force that type of production would be a fools errand. More important, China is a more lucrative market for these brands than the US and the rapid "forced" change to EV tech will accelerate that.
Of course, you are right. I don’t ever see an S Class being built here. However, perhaps other MB, Audi, BMW, Lexus, etc. models could be. I don’t think the President cares about the model, he just wants more Americans employed, building MORE of the vehicles that foreign companies are selling here. I believe he will prevail in this quest. Of course, one does worry a bit about quality when the UAW gets involved. Here is one of my favorite UAW photos. If it doesn’t fit, force it!

Last edited by Streamliner; May 31, 2018 at 11:22 PM.
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Old May 31, 2018 | 09:44 PM
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The irony in all of this is that Trump has owned many Mercedes and Maybach cars over time. As well as many other European makes. Just another disaster administration like everyone before him.
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Old May 31, 2018 | 09:46 PM
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Originally Posted by syswei
What I wrote in a thread 2 weeks ago (since moved to the political section of the forum) is that there's a good chance it won't happen. Chances are, either Trump backs down in the face of threatened European retaliatory tariffs on US exports like ag commodities or aircraft or construction equipment, etc. OR the Germans "announce" expansions of plants in AL, SC, TN that were probably planned anyway, and then Trump can go around touting how "he" has brought X thousands of jobs from German auto companies over to the U.S.

I think you are right. I also would agree that I think this is going to fail because even he knows how stupid it is.
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Old May 31, 2018 | 10:15 PM
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Originally Posted by Streamliner


Of course, you are right. I don’t ever see an S Class being built here. However, perhaps other MB, Audi, BMW, Lexus, etc. models could be. I don’t think the President cares about the model, he just wants more Americans employed, building MORE of the vehicles that foreign companies are selling here. I believe he will prevail in this quest.
Why is it that American manufacturers (save Cadillac) don't build cars that are class competitive with Mercedes etc? Why isn't he driving that instead of penalizing the manufacturers that step-up to make a world class car. It's a statement of weakness.
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Old May 31, 2018 | 10:34 PM
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Originally Posted by Streamliner


Of course, you are right. I don’t ever see an S Class being built here. However, perhaps other MB, Audi, BMW, Lexus, etc. models could be. I don’t think the President cares about the model, he just wants more Americans employed, building MORE of the vehicles that foreign companies are selling here. I believe he will prevail in this quest.
If we leave the politics aside, I don't think much of that will happen. The issue is related to automation and skills in car manufacturing and geography. The US unemployment rate is already significantly lower in the US than in Germany. We have 3.1% here in our state and it is extremely difficult to find people, let alone the right ones. With cars, robotics handle an increasing amount of assembly tasks and QA and the human labor tends to be on the skilled side. These are simply not the people that are out of jobs in the US. Nor are they located in the places where they are needed.
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Old Jun 1, 2018 | 07:30 AM
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Old Jun 1, 2018 | 08:06 AM
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Posturing, intimidation, threats, all are typical traits of a real estate developer trying to negotiate the best deal possible.
Trump is only using his business experience to get a better deal in trade for US, does not mean any of what he threatens will happen.
Don't worry, imports will keep coming as they do and prices will be unaffected.
Prices of US products in Europe might come down though, this whole thing is only about THEIR existing (very high while US are almost none) tariffs on our products.
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Old Jun 1, 2018 | 09:27 AM
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Not a fan of tariffs but it is just part of negotiations, don't expect it to happen for long if at all. US on the wrong end of trade for decades, time to correct.
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Old Jun 2, 2018 | 06:31 PM
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Originally Posted by absent
Posturing, intimidation, threats, all are typical traits of a real estate developer trying to negotiate the best deal possible.
Trump is only using his business experience to get a better deal in trade for US, does not mean any of what he threatens will happen.
Don't worry, imports will keep coming as they do and prices will be unaffected.
Prices of US products in Europe might come down though, this whole thing is only about THEIR existing (very high while US are almost none) tariffs on our products.
this is correct. The idea is to make them lower their tariffs by threatening to raise ours to the level of theirs. What good for the goose....
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