Extraordinary Genius

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 automotive industry in the US is very problematic, especially since labor costs are the highest in the world and are not suitable for building factories, why should Iceland machinery build a car factory in the US? ”

The construction of an automobile factory in the United States is more expensive than it used to be after production in Brazil, which makes it very inexpensive.

Feng Yu explained: “Previously we built a factory in Brazil dedicated to sales in the Americas. Brazilian labor costs are cheap, even cheaper than ours in Huaxia, and probably second only to India among the big countries. ”

“We build factories in Brazil, then ship them to Canada, pay a tariff, 16: 07 percent, and then enter the U.S. from Canada. There is an agreement between Canada and the United States to pay 25 percent of the tariff directly into the United States, and they have to pay only 5 percent of the tariff, which is 22 percent and 5 percent less. ”

This is a reasonable way of avoiding taxes, and Iceland Machinery and Canada have benefited, and the US has suffered slightly.

Do you think the U.S. doesn't know about these methods? Yes, of course. But the US also has a lot of advantages in other industries in the deal with Canada, especially US exports of Canadian cars, and it's just five percent tariff, which is too important.

There were three major car manufacturers in the US, but they were famous. Now that it's gone, this kind of preferential agreement is even more necessary. If Canada raised tariffs, the competitiveness of US cars would decline again, and their road to rejuvenation with shared cars and Chrysler would be a long way off.

“And now, many of America's automobile factories are bankrupt, including those of island countries and European automobile companies, who prefer to produce and sell from other markets, rather than build factories in the country, and can't stand automobile unions there. ”

“They chose to build a factory in a different place than we chose, they chose Mexico. Because they feel that building a joint venture plant in Brazil will leak their technology, let Brazil, like us in Huaxia, catch up quickly with their technology and drive their cars out of the market. ”

Knowing that labor costs are lower in Brazil than building a factory in the US, are those car companies not building a factory in Brazil, or are they not a technical blockade?

They also have joint ventures in Brazil, just like the previous joint ventures in Huaxia, using technologies that are already lagging behind, to produce joint ventures and sell automobiles. What if we need better cars over there? Simple, imported. From the U.S. to Brazil.

Automobile import tariffs vary from region to region, for example, between Huaxia and the US, which are 25 per cent of each other, but between the US and the EU, which are two and a half per cent of each other, this is the trade agreement between them.

In short, you're high on me, I'm high on you, you're low on me, I'm low on you. This is, of course, the case where the status of the two parties is not significantly different.

Just like before Huaxia came into existence, Huaxia's automotive import tariffs were as high as 70 percent, not yet to protect the development of its automotive enterprises.

If there was a 7 percent tariff at that time, then there would be a wild influx of foreign cars, and with better technology and the same price, there would be no way for Huaxia to live.

Now, of course, there is another way to continue to lower the tariffs on cars, so Iceland machines don't need to go to the US to build factories, just export them directly.

But then, to reduce tariffs as well as in the EU, when all European and American cars will flow into the Huaxia market, I'm afraid Huaxia's car enterprise situation will be seriously challenged again.

Ice City Machinery Manufacturing Group can handle it, relying on spare parts business at once, other car companies may not.

Since tariffs cannot be reduced and the US market must be completely opened up, it is necessary to build a factory in the US.

The other option is to build a factory in Mexico and export it to the US, where the tariff is only five percent, and the price is very low. The cost of car workers in Mexico is much lower than in the United States.

There are also rumours that perhaps the tariffs on cars between the US and Canada and Mexico will be reduced to two and a half percent, possibly even lower.

Just as there is an agreement between the US and the EU and the island countries, with zero tariffs on cars in the island countries, the US and EU tariffs on cars in the island countries are also the lowest.

Islanders aren't scared, because any car sales in any country have never been in the top 20. Automobiles produced by island companies are most popular with island nations.

Low tariffs are better suited to island automobile exports, and their cars are one of the pillars of the industry, and now Crazy Fields is the world's biggest leader.

But now those European car companies are starting to build factories in Mexico, and on the one hand, they are going to increase the cost of Mexican car workers very quickly, and on the other hand, will the US watch them drill?

The greatest possibility is for the United States to initiate a procedure to increase punitive tariffs on European vehicles imported from Mexico in order to safeguard its interests.

Analysts from Windstorm Consulting and Taihua Consulting agreed that tariff preferences would not be available at all unless they went to Mexico to build a plant, which was still a joint venture.

By exporting rice from Canada, we are now warned that rice can only be exported directly from Brazil or face tariff penalties.

Feng Yu made a detailed calculation. In the construction of the factory in the US, the cost of labor wages did not rise much, but the welfare requirements of the car union in the US are too harsh, and no car enterprise can afford it.

But now the same car is bankrupt, and the automobile union is underestimating a lot. At this time, when other automobile factories were withdrawn and bankrupt, Iceland Machinery Manufacturing Group went there to build the factory, it was likely to get some preferential policies, such as tax breaks and so on.

And this time in the US, a fully automated automotive production line is being built, with much less requirements for automobile workers per se. Auto workers are now very unemployed, Feng Yu can help with some placement, Obama will be very welcome.

At the same time, because of the high degree of automation, the workshop conditions would be very good, and, like normal factories, the various subsidized names of automobile unions could be completely omitted.

And isn't Obagnau going to promote universal health coverage? This Feng Yu would respond positively by dumping this aspect of health insurance into the US political axe, which could also reduce a single expense.

On the pension insurance side, Feng Yu's own bank has insurance business, which can digest itself internally and reduce costs.

“It's all calculated, although the cost is still a little high, but it's pretty much the same. Importantly, it helped Obama solve some problems with the placement of bankrupt factories and unemployed workers, and Obama promised to give some preferential policies to the Storm and Lenovo cards, overall, or to make money. ”