Is there something like that in American car? star-news.press/wp

Donald Trump says he wants to see more vehicles in America. The room is useful and once the idea could be feasible.

The problem is that there is no need to do in America’s car. And it hasn’t been for years.

Since the Canada and the US signed a self-treaty in 1965, car manufacturers take advantage of comparative advantage in order to make the industry more competitive, more efficient production and vehicles.

Experts say that the fares would completely dissolve these advantages.

“It is worse than the damage to Canada (a) The American car industry is not protected by trumpographs that has not been damaged by Canada,” Flavio Volp, the Association of Automotive Manufacturers (APMA).

Case study

Any vehicle made in North America is manufactured through suppliers and suppliers used through suppliers of parts that show the entire continent.

Consider the rear assembly of a car made in North America.

This graph collected by Apma. He says it is based on real contracts of partners. The company’s names were reduced to respect the competitiveness of confidentiality.

Each point is a company that offers a material or part of the material that needs to complete the rear assembly.

The process is even to break, it starts as a raw material from a country, it becomes a form of another part, and again had to be assembled to a wider component before submitting it to a customer.

Rubber is processed in Monterrey, Mexico. He has become an Iowa connector. This piece enters the control arm of Brampton. The control arm is collected as part of Detroit’s back suspension assembly. The rear assembly is sent to Windsor, ont, to make the latest assembly and eventually sold in California.

New NAFTA

You can create a similar string for each part of any car.

The whole process is made only when these components can be moved without rare.

That was the key component of the North American free trade agreement in 2018. When he was announced, Trump signed a Mexican agreement in the United States of Canada as a breakthrough of Mexico Course of Canada as a breakthrough for the American car industry.

“Once approved, the dawn will be new for the American and American autoworker in the Auto Industry,” Trump said in 2018.

And yet, when he announced his latest fare Salvo, Trump’s claims basically failed his trade agreement.

“I asked before the issuance of the 9888 proclamation, such as reviews of the U.S. Korea-Korea trade agreement and the United States (USMCA), they have not given enough positive results,” the administration wrote.

The dissolution of the status quo will be a huge cost.

“It’s not really a car in North America,” Patrice Maltais said from the Canadian Association of the Industry Association.

The continent nature of the intricate supply chain says costs dollars and building decades.

“You must generally undo many of these supply chains and you need to put new ones, which requires a lot of time and a lot of money.”

A new manufacturing plant says that it could cost about $ 2 billion from $ 10 billion.

“It’s just the plant, then you have to look at all the supply chains of that plant.”

Although the automili agreed to take production to the USA, it would take years to build.

Rates would wear the industry, experts say

Meanwhile, experts say that the industry would surprise the tariffs.

“You will feel almost immediately,” said Jan Griffiths, American Auto Executive and Gravitas Detroit of Industry Association.

Those who would cost everyone more likely to use forcefully, Trump must offer a feasible path for Canada, Mexico and the United States.

“If this is about to negotiate the USMCA, let’s do it, but let’s do it now and let’s uncertainty outside the system. The company cannot manage this level of uncertainty,” CBC news said.

As Griffiths says, the manufacturing base that existed once in the US says “already here”. Certainly, one of the most effective and effective manufacturing processes in the world was represented.

The threat of dissolving this network has already shook the markets, which did not create unprecedented concerns among one of the largest industries in the continents.