Featured Trump tariffs put the US auto industry in disarray

The cheap econo-boxes also helped them meet cafe standards - offsetting those large highly profitable gas guzzlers. Since the governments' appetite to increase taxes for bad behavior on large corporations has diminished - they're free to do whatever they want. They just need to 'kiss the ring' and aim platitudes in a certain direction.

Hey it works for Putin; or is it the other way around. Sorry I'm getting senile.......

 

Kia K4 is made in Mexico to keep cost low - the reason no small cars are made in the USA is Labor Cost - spelled - UAW.

If you want an entry level model at rock bottom prices - you can not make it in the USA because of labor cost.
Labor is the single largest variable in the cost of car manufacturing.

KIA has a huge manufacturing Facility in the USA and makes most of its models right there but even for them as a non-union plant the American Labor Cost are a no go for their entry level vehicles.

Why Automakers Need To Focus On Labor Cost Per Vehicle

Our “Harbour Report” team has conducted a comprehensive analysis of labor costs per vehicle across over 250 vehicle assembly plants globally, including a review and incorporation of sourcing strategies. Labor typically constitutes 65% to 70% of total conversion costs, requiring it to be a key focus area for automakers.

 

I read only the summary in the link but I find the term "conversion" to be undefined? Why not "production" or is there some difference I'm not understanding?

 

same - same

 

Exactly. The cost of labor is something like 1/10 in Mexico compared to here. But if there's a tariff on the car, it is now more expensive to produce anyway for the manufacturer.

 

Not really more expensive to produce in Mexico; just more expensive to sell in the States (tariffs).
If it was produced/assembled here in the states - It would be a double whammy. Import tariffs on the pieces imported for assembly and high labor cost for assembly. Manufacturers get to pick their poison.....

YMMV

Seems weird that a simpleton like me can figure this out; but the brain-trust in DC can't or won't........... Let's just throw a bunch of crap against the wall to see what sticks.........

 

Simple question:

What two full time jobs do I need to get so I can afford a new car and possibly a house?

I leave for my current job around 6:30 am and get back around 6:00 pm, Monday through Friday. I make around $60,000k a year. After taxes and beneifts my paycheck is sometimes less than $3,000 per month. A brand new Toyota Corolla would be a payment of $700 per month for a 48 month loan, not including insurance, fuel or maintenance. The cheapest 2 bedroom condo is $300,000 or around $2,000 per month.

 

Maybe get both used?

 

But used cars as new ones and of course I'm looking at used houses (maybe I didn't mention that). $15,000 for a used Yaris. $300,000 for a 40-year-old condo.

 

You have to figure that out yourself.

Everyone gets to write their own life's story.

Case in point here is a couple who can't make ends meet on $600,000 a year - (hint it is not about how much money you make)

 

DO your due diligence with the condo!

"Some people say" they have all of the disadvantages of an apartment with all of the disadvantages of a single family home on a postcard-sized lot.
I have a good friend at my local church that sold a house for a condo who admitted to shedding tears of relief for being rid of yard and grounds maintenance. HOWEVER (comma!) he can afford the condo maintenance fees and even write a five figure check if whoever owns the condo property ever screws up and has to shank the unit owners for a major building repair.

Individual homes have some of the same disadvantages of course, and nobody really OWNS property, post Kelo v. City of New London and as long as it is taxed - so........

YOU do YOU.

 

Location location. There are new homes being built (completely discounting used) in areas of Texas in the $200s.
Yeah - moving is hard. We have friends that got out of the dumpster fire of Chicago & moved across the state line so they could have a better - more affordable life. Uprooted kids from school friendships, neighborhood & family friendships, jobs etc. We did the same for retirement purposes, moving over 1,000 miles. It's tiring just thinking about it.
.

 

If it is any comfort you weren't alone:

Nearly 1 Million Californians Fled the State Last Year — Where Did They Go and Why?

Californians fleeing state by the tens of thousands as Newsom claims it’s ‘thriving’ | Watch

 

True.

Of course you got to factor in things like job availability, pay rate and property tax.

Property taxes are much higher in Texas than other states, adding on another $3,000 or so per year to that payment on that $200,000 house. A $600,000 house in my area would have a yearly tax of around $1,600.

Of course, on the flip side, state income tax might be a little less in Texas than Colorado, especially if you're working two 40 hour jobs.

Minimum wage is $7.25 an hour compared to around $15 in Colorado. So if things hit almost rock bottom it might be harder to make things work in Texas.

And then there's the why. The only reason why to move to Texas for me would be to be able to buy a house. There nothing else interesting about the state than lower housing prices.

 

Then you made your choice and have to live with the good and bad of that decision.

 

Thank you.