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View Full Version : As Trump targets Toyota over Mexico, Nissan faces bigger risk



Common
01-06-2017, 07:43 AM
` This is so long overdue, trump is the ONLY Potus to ever attempt to stop the rape of american workers and the rape of taxpayers. Mexico sticks it to us both ways.

U.S. President-elect Donald Trump has threatened Toyota Motor Corp (7203.T (http://www.reuters.com/finance/stocks/overview?symbol=7203.T)) over its Mexican-built cars, but the biggest risk from a punitive tariff would be for its compatriot Nissan Motor Co (7201.T (http://www.reuters.com/finance/stocks/overview?symbol=7201.T)), the largest automaker operating in the country.
Trump has criticized U.S. companies like General Motors (G.N (http://www.reuters.com/finance/stocks/overview?symbol=G.N)) and Ford Motor Co (F.N (http://www.reuters.com/finance/stocks/overview?symbol=F.N)) which manufacture abroad, accusing them of costing U.S. jobs. On Thursday he took on Toyota, warning the world's largest automaker that it would face a "big border tax" if it exported Mexico-built cars to the U.S. market.
But it is Nissan, Japan's second-largest automaker, which would be the bigger victim of any tax punishment. Nissan built its first overseas plant in Mexico in 50 years ago and now produces more than 800,000 cars there, mainly its entry-level Versa and Sentra sedans.
Nissan's production dwarfs that of Toyota, Honda Motor Co (7267.T (http://www.reuters.com/finance/stocks/overview?symbol=7267.T)) and Mazda Motor Corp (7261.T (http://www.reuters.com/finance/stocks/overview?symbol=7261.T)) in Mexico. It exports roughly half of its output to the United States, where it also has production plants.
Vehicles made in Mexico comprise roughly one-quarter of Nissan's total U.S. vehicle sales, industry experts say, compared with around 30 percent for smaller rival Mazda, but less than 10 percent for Toyota and Honda.
Japanese automakers together produced around 1.4 million vehicles in Mexico in the year ended March, nearly 40 percent of the country's total output. According to the Japan External Trade Organization, they plan to ramp up production to 1.9 million by 2019.
Current production in Mexico is dwarfed by the number of cars they produce in the United States, their single largest market, where Japan's top three automakers alone produced around 4 million vehicles in 2015.
Trump has said he plans to renegotiate the North American Free Trade Agreement between the United States, Canada and Mexico, and has vowed to impose a 35 percent tariff on cars exported to the United States from Mexico.
According to JP Morgan estimates, an increase in tariffs on cars exported from Mexico to the United States to even 10 percent would hit Nissan's consolidated operating earnings by 10.3 percent, more than 5.5 percent at Mazda. Toyota would see a hit of 0.7 percent, while Honda 2.2 percent.
All four Japanese automakers building cars in Mexico said they have no immediate plans to change operations, and one Asian auto executive told Reuters his company long ago made a strategic decision to make Mexico a production hub in North America, and that it is tough to alter its strategy overnight.
"We can't turn back the clock on these decisions," said the executive, who did not have clearance to speak to media and so declined to be identified.
"What we need to explain more clearly (to Trump) is that most automakers are not cutting production capacity or jobs in the United States to make Mexico an additional production hub."
Still, analysts said automakers would likely think twice about expanding production in the country in the coming years.
"As long as this administration is in place I suspect (Nissan is) not going consider any additional capacity there," CLSA analyst Chris Richter said.

http://www.reuters.com/article/us-japan-autos-nissan-idUSKBN14Q12O

Captain Obvious
01-06-2017, 07:50 AM
I'm eyeing a Nissan Frontier for the whipmistress for later this year.

Common
01-06-2017, 07:56 AM
I'm eyeing a Nissan Frontier for the whipmistress for later this year.
I bought a new nissan rogue 2014 what a pos, worst car for breakdowns ive ever owned. Im getting rid of it in the next week.

Nissan repair record is in the toilet compared to what it used to be and the rogues is one of their better models.

Captain Obvious
01-06-2017, 07:59 AM
I bought a new nissan rogue 2014 what a pos, worst car for breakdowns ive ever owned. Im getting rid of it in the next week.

Nissan repair record is in the toilet compared to what it used to be and the rogues is one of their better models.

I hear ya, that's why I'm aiming for a truck for her, small truck.

I think the mainstream cars are mostly junk, that's why they're mainstream.

Crepitus
01-06-2017, 08:36 AM
None of the automakers listed there are American companies.

Crepitus
01-06-2017, 08:37 AM
I hear ya, that's why I'm aiming for a truck for her, small truck.

I think the mainstream cars are mostly junk, that's why they're mainstream.

Don't buy a colorado/canyon.

Captain Obvious
01-06-2017, 08:37 AM
None of the automakers listed there are American companies.

And?

Captain Obvious
01-06-2017, 08:38 AM
Don't buy a colorado/canyon.

They're too big for one thing.

I have the F-250 for me already, it's been a good truck so far. This is for her to replace her Kia something or another that's getting kind of clunky.

Crepitus
01-06-2017, 08:42 AM
And?

They aren't "offshoring".

Crepitus
01-06-2017, 08:42 AM
They're too big for one thing.

I have the F-250 for me already, it's been a good truck so far. This is for her to replace her Kia something or another that's getting kind of clunky.

They are also flimsy pieces of crap.

Captain Obvious
01-06-2017, 08:45 AM
They aren't "offshoring".

Sure they are, Trump just wants them offshoring here instead of Mexico.

Are you not getting the point of the OP?

Captain Obvious
01-06-2017, 08:46 AM
They are also flimsy pieces of crap.

What would I get for her then?

I'm not dropping $50k or whatever on an American SUV,

Crepitus
01-06-2017, 08:47 AM
Sure they are, Trump just wants them offshoring here instead of Mexico.

Are you not getting the point of the OP?

Why don't we worry about the companies that live here first.

Captain Obvious
01-06-2017, 08:48 AM
Why don't we worry about the companies that live here first.

Like Ford?

Trump already addressed them and they complied.

Captain Obvious
01-06-2017, 08:49 AM
Come to think of it, Trump's already done far more for American workers than teh O'bama ever did in the past 8 years - and he's two weeks not in office yet.

:biglaugh:

Crepitus
01-06-2017, 08:50 AM
What would I get for her then?

I'm not dropping $50k or whatever on an American SUV,

I thought you said she wanted a truck?


Girlfriends mom has a Kia she seems quite pleased with. Sportage I think?

Captain Obvious
01-06-2017, 08:52 AM
I thought you said she wanted a truck?


Girlfriends mom has a Kia she seems quite pleased with. Sportage I think?

Didn't you just call Kia junk?

She has a Sorento I think it's called. It was decent, smallish but 7 seats.

She doesn't really want a truck but I don't want to get her something flimsy, in case she hits an elk or something which they're prone to do around here.

Crepitus
01-06-2017, 08:53 AM
Like Ford?

Trump already addressed them and they complied.

Last I heard the official word from ford was they were already doing that before trump got elected.

Crepitus
01-06-2017, 08:55 AM
Didn't you just call Kia junk?

She has a Sorento I think it's called. It was decent, smallish but 7 seats.

She doesn't really want a truck but I don't want to get her something flimsy, in case she hits an elk or something which they're prone to do around here.

No, colorado/canyon is a GM product.

Captain Obvious
01-06-2017, 08:55 AM
Last I heard the official word from ford was they were already doing that before trump got elected.

Maybe you need better news sources.

http://www.npr.org/2017/01/03/508075313/ford-scraps-plans-for-mexico-plant-in-surprise-move

Captain Obvious
01-06-2017, 08:58 AM
No, colorado/canyon is a GM product.

Right, I think we're having a "who's on first" dialogue.

:biglaugh:

I swore off American cars after her Durango crapped out early on in it's life, then I bought a Ford truck lol.

I really would like to get her a small Japanese truck. The Toyota is really pricey, which is why I'm eyeing the Nissan.

Japanese/Koreans don't make a decent mid-sized SUV under a ton of money.

patrickt
01-06-2017, 09:28 AM
Let me make sure I understand this. The liberal trade restrictions are designed to insure that countries only buy what's made in their country.

FWIW, Mexico did that when they were on their socialist kick. The result is that Mexicans got so fed up with high prices and shoddy goods that today they still avoid products made in Mexico. That's what Donald Trump is suggesting the U.S. do. Build the Toyatas only in the U.S. with Union labor and U.S. regulations. The regulations aren't on the product but rather on the production. Volkswagen made in Mexico meet all the product regulations.

This is like the Veg-a-matics being hustled at the fair. Sounds really good but when you get it home it's junk.

Crepitus
01-06-2017, 11:48 AM
Maybe you need better news sources.

http://www.npr.org/2017/01/03/508075313/ford-scraps-plans-for-mexico-plant-in-surprise-move
Ah, I was referring to the stuff back in november. Well, another 700 jobs. How much did these cost us?

Crepitus
01-06-2017, 11:49 AM
Right, I think we're having a "who's on first" dialogue.

:biglaugh:

I swore off American cars after her Durango crapped out early on in it's life, then I bought a Ford truck lol.

I really would like to get her a small Japanese truck. The Toyota is really pricey, which is why I'm eyeing the Nissan.

Japanese/Koreans don't make a decent mid-sized SUV under a ton of money.

I actually have no real input on suvs. I can't stand them. Trucks I know.

Captain Obvious
01-06-2017, 11:51 AM
Ah, I was referring to the stuff back in november. Well, another 700 jobs. How much did these cost us?

Probably less than unemployment like the last deal.

Crepitus
01-06-2017, 12:05 PM
Probably less than unemployment like the last deal.

You think those guys woulda burned up 7 million dollars in unemployment before they got hired somewhere else?