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Huge win for Trump as world's second biggest carmaker relocates manufacturing to US

Landon Caeli

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Volkswagen Group, the second largest automaker in the world in 2024, is preparing to join the growing list of automakers looking to rejig its US factories in response to the tariffs.

 

Landon Caeli

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....And they said it couldn't be done. :D

Behold..! We have not only the greatest president in US (or world) history, who vows to rebuild the country, but the first American pope As well. The American Golden Age is now!
 
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SimplyMe

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Wake me up in 2026, when they are supposed to make the decision about this. Though, from the article, it sounds like what is actually going to happen is that the Audi Q4, which under the skin is exactly the same as the VW ID.4, will join the ID.4 and be built in Tennessee -- then they will export fewer VW models from the plant to other countries. I suspect the "new Audi models" will also likely be the same, under the sheet metal, to something like the VW Atlas that is made in Tennessee. So they'll make "more" cars for the US from the same factory, eliminate most of the cars they export, and not actually build any new factories and without any major new investment (since the assembly lines will remain the same) as they are just making new "versions" (both VW and Audi) of the cars they currently manufacture.
 
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BPPLEE

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1746825310789.png
 
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GoldenBoy89

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....And they said it couldn't be done. :D

Behold..! We have not only the greatest president in US (or world) history, who vows to rebuild the country, but the first American pope As well. The American Golden Age is now!
If this is the American golden age then what was the post war era?
 
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Landon Caeli

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If this is the American golden age then what was the post war era?

Well, I would agree that "the post war era" is an unsatisfactory title for the 60's, 70's 80's and 90's... Those times really deserve a name of their own.
 
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Nithavela

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....And they said it couldn't be done. :D

Behold..! We have not only the greatest president in US (or world) history, who vows to rebuild the country, but the first American pope As well. The American Golden Age is now!
Having a pope from your country isn't actually much of an advantage when the patriotic fervor wears off.

Regarding the article in the OP, they are thinking about it. Nothing substantial has been decided, much less actually achieved.
 
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Landon Caeli

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Having a pope from your country isn't actually much of an advantage when the patriotic fervor wears off.
I suppose you would know.
 
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Nithavela

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I suppose you would know.
Indeed. Grand headlines of "we are pope", but in the end, the pope is the leader of his own country and huge, international church. He has very little time to be a person from his former country.

Of course it's a big thing on the personal level of catholic citizens, but it doesn't improve the country as a whole.
 
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Bradskii

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Volkswagen Group, the second largest automaker in the world in 2024, is preparing to join the growing list of automakers looking to rejig its US factories in response to the tariffs.
This means nothing at all. All VeeDub is going to do is make a different model in an existing plant - the Audi. There'll be no new factories. No new car plants. No new jobs. And you can bet your bottom dollar that they will require that any tarrifs on the parts of the car that will be imported will be free of tariffs. Which means almost all of them.

Bear in mind, something that most people overlook, cars are not built in the US, they are assembled there. A huge proportion of the parts come from elsewhere. And even parts that are manufactured in the US use bits and pieces from overseas. The supply chain is ridiculously complex.
 
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sjastro

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This means nothing at all. All VeeDub is going to do is make a different model in an existing plant - the Audi. There'll be no new factories. No new car plants. No new jobs. And you can bet your bottom dollar that they will require that any tarrifs on the parts of the car that will be imported will be free of tariffs. Which means almost all of them.

Bear in mind, something that most people overlook, cars are not built in the US, they are assembled there. A huge proportion of the parts come from elsewhere. And even parts that are manufactured in the US use bits and pieces from overseas. The supply chain is ridiculously complex.
Even when there is an emphasis on local content such as American built Toyota Camrys the local content is only around 65%.
Proprietary or sensitive foreign components are not manufactured locally and often imported as complete units.
 
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Bradskii

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Even when there is an emphasis on local content such as American built Toyota Camrys the local content is only around 65%.
Proprietary or sensitive foreign components are not manufactured locally and often imported as complete units.
There are about 30,000 parts in your average vehicle. There is no way on earth that one country can supply all the materials, expertise and labour to fabricate everything from first principles. Even if it was attempted, the cost today would be astronomical. The only people who build cars from the ground up are the guys in Formula 1. The only guy who attempted it for mass produced cars was Henry Ford. And he partly succeeded. He even build his own foundries to make the steel he needed.

If you're building a set of wheels these days then everything is sent out for competitive tender. You might get your brake pads from the UK. Who might get the ceramics from Germany. And the rivets from India. Who gets the steel from the US. Who gets the iron ore from Australia. Who dig it up using vehicles made in the US. Who got the brake pads from the UK...and on it goes.

When people talk about a global market, it truly means global. Trump thinking that he can restart what Ford attempted in the 20's and bring manufacturing back to the US is living in a fantasy land.
 
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Larniavc

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Volkswagen Group, the second largest automaker in the world in 2024, is preparing to join the growing list of automakers looking to rejig its US factories in response to the tariffs.

'To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.'

Concepts of a plan?
 
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Aryeh Jay

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Concepts of a plan?

Sounds like the advertisement for a movie.

"Concepts of a plan, Concepts of a dream, see Tom Hanks in another movie where he plays a person who looks nothing like him. Concepts of an American President, comming Summer 2027"
 
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Landon Caeli

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'To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.'

Concepts of a plan?
In the business world, it’s all about speed. Time is money, and the tariffs are in place.

...You might be surprised how quickly things are about to change, much like how the industrial revolution happened almost instantly in comparison to how governments typically operate.
 
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durangodawood

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In the business world, it’s all about speed. Time is money, and the tariffs are in place.

...You might be surprised how quickly things are about to change, much like how the industrial revolution happened almost instantly in comparison to how governments typically operate.
The tariffs are in flux.

Businesses will make large investment decisions once the situation stabilizes. Who knows when that will be.
 
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Landon Caeli

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The tariffs are in flux.

Businesses will make large investment decisions once the situation stabilizes. Who knows when that will be.
Perhaps the next step in tariff application will be with rubber stamped time periods, to prevent fluctuation.

...Perhaps we're taking practice swings, and testing the air with a wet fingertip.
 
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Larniavc

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In the business world, it’s all about speed. Time is money, and the tariffs are in place.
‘End of the year’.

I don’t think that counts as Warp Speed.
 
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Larniavc

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You might be surprised how quickly things are about to change, much like how the industrial revolution happened almost instantly in comparison to how governments typically operate.
That took 80 years.
 
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