The Second Thousand and Seventy-Two Chapters to the United States to Build a Car Factory
After the ceremony, Zhang Ruiqiang sat with Feng Yu, because Feng Yu told him another thing, which made him a little confused.
"Feng Yu, didn't you say that the automobile industry in the United States has serious problems, especially the labor costs are the highest in the world, so it is not suitable for building a factory. Why does Bingcheng Machinery build an automobile factory in the United States?"
Building a car factory in the United States is more expensive than shipping it from Brazil, which is not cost-effective.
Feng Yu explained: "Before we built a factory in Brazil to sell to the Americas. Brazil's labor costs are very cheap, even cheaper than ours in China. Among the big countries, it may be second only to India."
"We build a factory in Brazil to produce, then transport it to Canada, pay a tariff of 16.7%, and then enter the United States from Canada. Directly entering the United States, we have to pay a 25% tariff. Canada and There is an agreement between the United States, they only need to pay 5% tariff, so the overall tax is 22.5%, saving 2.5% tax.”
This can be regarded as a reasonable means of tax avoidance. Both Bingcheng Machinery and Canada have benefited, and the United States has suffered a bit.
Do you say that the United States does not know these methods? of course I know. However, in the agreement with Canada, the United States also has many benefits in other industries, especially the cars exported from the United States to Canada, which only need to pay a 5% tariff, which is too important.
In the past, the United States, the three major automobile manufacturers, had a great reputation. Now that it is in decline, this kind of preferential agreement is even more needed. If Canada raises tariffs, the competitiveness of cars in the United States will decline again, and the road to revival of their shared cars and Cores will be in the foreseeable future.
"And now, many car factories in the United States have gone bankrupt, including the factories of car companies in island countries and Europe. They would rather produce from other markets and sell them, rather than build factories in the United States. They can't stand the auto unions there. .”
"The place they chose to build a factory is different from our choice. They chose Mexico. Because they feel that building a joint venture car factory in Brazil will leak their technology, and Brazil will catch up with them as quickly as China. technology and take their cars off the market."
Knowing that Brazil's labor costs are lower, it is more cost-effective than building factories in the United States, but those car companies just don't build factories in Brazil, isn't it a kind of technological blockade?
They also have a joint venture factory in Brazil, just like the joint venture factory in China in the previous life, using those outdated technologies to the joint venture to produce cars for sale. What if some better cars are needed over there? Simple, import ah. From the United States, sold to Brazil.
Automobile import tariffs are different between regions. For example, between China and the United States, it is 25% of each other, but between the United States and the European Union, it is 2.5% of each other. This is the difference between them. trade agreement.
In short, if you are high to me, I will be high to you, and if you are low to me, I will be low to you. Of course, this is the case when the status of the two parties is not much different.
Just like before China's accession to the WTO, China's auto import tariff was as high as 70%, not to protect the development of domestic auto companies.
If there was a 7% tariff at that time, foreign cars would flood in wildly. With better technology and the same price, there would be no way for Chinese car companies to survive.
Of course, there is actually another way now, which is to continue to reduce mutual auto tariffs, then Bingcheng Machinery does not need to build a factory in the United States, just export directly.
But in that case, tariffs will be lowered just like the EU. When all European and American cars flood into the Chinese market, I am afraid that the situation of Chinese car companies will face serious challenges again.
Bingcheng Machinery Manufacturing Group can withstand it, and it can also withstand it with its spare parts business. Other car companies may not be able to withstand it.
Since tariffs cannot be reduced and the US market must be fully opened, it is necessary to build factories in the US.
In fact, there is another option, which is to build a factory in Mexico.
Then export to the United States, the tariff is only 5%, the price is very low. The cost of auto workers in Mexico is much lower than that in the United States.
There are also rumors that the auto tariff between the United States, Canada, and Mexico may also be reduced to 2.5%, or even lower.
Just like the United States and the European Union have an agreement with the island countries, and the automobile tariffs of the island countries are 0, then the automobile tariffs of the United States and the European Union on the island countries should also be the lowest.
The island country is not afraid, because any car sales in any country has never been ranked in the top 20 in the island country. The cars produced by the island country's car companies are the most popular among the island people.
The low tariffs are more suitable for the island country's auto exports, and their autos can be regarded as one of the pillar industries. Now Madland has become the world's largest.
But now those European car companies are starting to build factories in Mexico. On the one hand, it will increase the cost of Mexican auto workers very quickly. On the other hand, will the United States just watch them take advantage of loopholes?
The biggest possibility is that the United States will start a process to increase some punitive tariffs on European cars imported from Mexico to protect the interests of the United States.
The analysts of Fengyu Consulting and Taihua Consulting all believe that unless they are joint ventures to build factories in Mexico, they will not enjoy preferential tariffs at all.
The way of exporting to the United States through Canada has now been warned that it can only export directly from Brazil to the United States, otherwise it will face tariff penalties.
Feng Yu did a detailed calculation. When building a factory in the United States, the cost of labor wages actually did not increase much. However, the welfare requirements of the auto union in the United States are too deceitful, and no car company can afford it.
But now that the same cars are bankrupt, the auto union has kept a low profile. At this time, when other automobile factories divest and go bankrupt, Bingcheng Machinery Manufacturing Group will probably get some preferential policies, such as tax reduction or exemption, if it builds a factory there.
This time, what will be built in the United States is a fully automatic automobile production line, and the requirements for auto workers are much less. Now auto workers are very unemployed, Feng Yu can help resettle some, Aobaniu will be very welcome.
At the same time, because of the high degree of automation, the conditions of the workshop will be very good. Like ordinary factories, the various subsidy items of the auto union can be completely saved.
In addition, isn't Obama going to implement universal medical insurance? This Feng Yu will respond positively, leaving the aspect of medical insurance to the US government, which can also reduce a sum of expenses.
As for endowment insurance, Feng Yu's own bank has insurance business, which can be digested internally and reduce costs.
"All in all, although the cost is still slightly higher, it is not too bad. The important thing is that it helped Auba Niu solve the problem of relocating some bankrupt factories and unemployed workers. Auba Niu promised that it would give Fengyu a card Helian Xiangpai has some preferential policies, but on the whole, it still makes money."