Economy Volkswagen gets Canceled

[Rhood]

The Audi/Volkswagen brand sent a memo to dealers, saying it would freeze shipments from April 2 until further notice.

A Volkswagen spokesperson said consumers won't see an immediate impact. The company currently has about 37,000 vehicles in US inventory, enough to keep dealerships stocked for roughly two months.
'We communicate to our dealer body about all aspects of the business, and we want to be very transparent about navigating through this time of uncertainty.'
'The messaging can change daily, based on circumstances. We have our dealers and customers best interest at heart, and once we have quantified the impact on the business we will share our strategy with our dealers.'

Manufacturers are scrambling to calculate how deeply the duties will cut into their bottom lines, dealer inventories, and long-term production plans.

Audi cars held in US ports as Volkswagen tariff uncertainty looms

Audi is directly in the firing line of Trump's tariffs, with its best-selling U.S. model, the Q5 SUV, produced in Mexico.

www.usatoday.com

 

[GrantB13]

Maybe America should make less shit cars.

 

[MTT]

Maybe America should make less shit cars.

America makes some excellent cars. C8 Corvette for 60k? What a steal.

 

[Rob Battisti]

America makes some excellent cars. C8 Corvette for 60k? What a steal.

@TeTe

 

[Scheme]

Maybe America should make less shit cars.

By the same logic, should Europe make less shit cars as well given their auto tariffs on both America and China? Why is it okay for EU to impose a 10% tariff on American cars and America to only have a 2.5% tariff on theirs? Either the EU is just as dumb as America and has been for a long time or there may be more to it than simply making "less shit cars".

 

[MMA IAN]

Maybe America should make less shit cars.

Name a European car brand that is known for reliability and affordable repairs

 

[Fergelmince]

Maybe America should make less shit cars.

Tell that to Volkswagen

Volkswagen Chattanooga Assembly Plant - Wikipedia

en.wikipedia.org

 

[jefferz]

America makes some excellent cars. C8 Corvette for 60k? What a steal.

What other cars do the big 3 make? Chevy has the Malibu, and doesn't have a replacement for the Camaro. Ford has the Mustang. Dodge has the new Charger.


I doubt we'll see any developement on any new platforms in the next 4 years with how uncertain things will be.

 

[GrantB13]

America makes some excellent cars. C8 Corvette for 60k? What a steal.

Its a good exception.

By the same logic, should Europe make less shit cars as well given their auto tariffs on both America and China? Why is it okay for EU to impose a 10% tariff on American cars and America to only have a 2.5% tariff on theirs? Either the EU is just as dumb as America and has been for a long time or there may be more to it than simply making "less shit cars".

I don't know the entire political history, but there's more brands in Europe than the US to choose from. I haven't been in new-new vehicles lately but unless the American brands have caught up from my memory foreign vehicles typically felt more premium and higher quality than the crappy hard plastic on vehicles like Chevy and Ford for example. Basically, there needs to be more incentive to wanting to limit yourself to a domestic vehicle outside of a political reason.

Name a European car brand that is known for reliability and affordable repairs

Unfortunately most modern cars are taking a step back. Even the Japanese cars aren't what they were a couple decades ago.

 

[I Am Legion]

VW is a failing brand with horrible quality anyway. For all of you anti tariff folsk....why was it ok for everyone to Tariff the US but not the other way around? Keep your shit VWs. No company can survive losing 50% of their total sales.

 

[SandisLL]

By the same logic, should Europe make less shit cars as well given their auto tariffs on both America and China? Why is it okay for EU to impose a 10% tariff on American cars and America to only have a 2.5% tariff on theirs? Either the EU is just as dumb as America and has been for a long time or there may be more to it than simply making "less shit cars".

There aren't just 2.5% tariffs.
U.S does use different tariffs for imported from EU cars. Tariffs depends from car category and might be even 25%....
Yes, U.S cars isn't easy to sell in Europe but this is mainly cos they doesn't invest enough in advertisements campaigns for europe plus usually are known that doesn't cares much about fuel consumption...

Crying about euro cars in U.S is useless.
For example Porshe, Mercedes and Ferrari are purchased cos brand etc....
Like if someone wants Jeep etc.

 

[Scheme]

There aren't just 2.5% tariffs.
U.S does use different tariffs for imported from EU cars. Tariffs depends from car category and might be even 25%....
Yes, U.S cars isn't easy to sell in Europe but this is mainly cos they doesn't invest enough in advertisements campaigns for europe plus usually are known that doesn't cares much about fuel consumption...

Crying about euro cars in U.S is useless.
For example Porshe, Mercedes and Ferrari are purchased cos brand etc....
Like if someone wants Jeep etc.

Tariffs also lower demand of the people buying the car. If a car is tariffed at 10% then it is essentially 10% more expensive in that country than local auto manufacturers. Most people really look at prices when buying big items like cars. So having a tariff imbalance inherently hurts the demand for the company that is selling that car. A 7.5% tariff discrepancy on a large-ticket item like cars would be in the range of $2-5K, which as a consumer is a big deal, especially in EU markets that don't have the same amount of money that the American consumer market has.

I agree that a lot of people buy European cars because of the brand, so why exactly is a tariff so bad on them? They are typically going to be high-end vehicles (Porsche, Mercedes, Ferrari, etc. as you mentioned), so the car price for an average person is going to be less affected than a rich person buying these high-end vehicles. To me it sounds like rich people in America have to pay a little extra to buy luxury brand cars, like a pseudo-tax on the rich. If you are going to argue that the average person in America is going to be negatively affected, tariffs on Japan or South Korea are much more impactful.

 

[Scheme]

Its a good exception.

I don't know the entire political history, but there's more brands in Europe than the US to choose from. I haven't been in new-new vehicles lately but unless the American brands have caught up from my memory foreign vehicles typically felt more premium and higher quality than the crappy hard plastic on vehicles like Chevy and Ford for example. Basically, there needs to be more incentive to wanting to limit yourself to a domestic vehicle outside of a political reason.

Unfortunately most modern cars are taking a step back. Even the Japanese cars aren't what they were a couple decades ago.

I think EU has mostly a premium car market in America. I don't really care too much about people buying premium cars made in a foreign market getting a 10% tariff hit. I'd care more about what the low end models cost, which are typically made in Asia and USA. In fact I'd prefer it if BMW and Mercedes Benz owners paid more, given how terrible their drivers always end up being.

 

[Rod1]

Tariffs also lower demand of the people buying the car. If a car is tariffed at 10% then it is essentially 10% more expensive in that country than local auto manufacturers. Most people really look at prices when buying big items like cars. So having a tariff imbalance inherently hurts the demand for the company that is selling that car. A 7.5% tariff discrepancy on a large-ticket item like cars would be in the range of $2-5K, which as a consumer is a big deal, especially in EU markets that don't have the same amount of money that the American consumer market has.

I agree that a lot of people buy European cars because of the brand, so why exactly is a tariff so bad on them? They are typically going to be high-end vehicles (Porsche, Mercedes, Ferrari, etc. as you mentioned), so the car price for an average person is going to be less affected than a rich person buying these high-end vehicles. To me it sounds like rich people in America have to pay a little extra to buy luxury brand cars, like a pseudo-tax on the rich. If you are going to argue that the average person in America is going to be negatively affected, tariffs on Japan or South Korea are much more impactful.

Europe already told Trump they are ok with zero for zero tariffs and Trump said no.

 

[SandisLL]

Tariffs also lower demand of the people buying the car. If a car is tariffed at 10% then it is essentially 10% more expensive in that country than local auto manufacturers. Most people really look at prices when buying big items like cars. So having a tariff imbalance inherently hurts the demand for the company that is selling that car. A 7.5% tariff discrepancy on a large-ticket item like cars would be in the range of $2-5K, which as a consumer is a big deal, especially in EU markets that don't have the same amount of money that the American consumer market has.

I agree that a lot of people buy European cars because of the brand, so why exactly is a tariff so bad on them? They are typically going to be high-end vehicles (Porsche, Mercedes, Ferrari, etc. as you mentioned), so the car price for an average person is going to be less affected than a rich person buying these high-end vehicles. To me it sounds like rich people in America have to pay a little extra to buy luxury brand cars, like a pseudo-tax on the rich. If you are going to argue that the average person in America is going to be negatively affected, tariffs on Japan or South Korea are much more impactful.

Yes, tariffs on South Korea will impact damn a lot of fields not only car market.

They are No2 manufacturers of some chips types in world.
Also there a lot of stuff from phones, memory cards, RAM, SSD, HDD etc...

Also electronic components for cars from Japan and SK are used in U.S and Europe.
SK is selling damn a lot of stuff for households and bussinesess...worldwide.
From fridges and TV , till industrial pumps etc stuff....

 

[SandisLL]

I think EU has mostly a premium car market in America. I don't really care too much about people buying premium cars made in a foreign market getting a 10% tariff hit. I'd care more about what the low end models cost, which are typically made in Asia and USA. In fact I'd prefer it if BMW and Mercedes Benz owners paid more, given how terrible their drivers always end up being.

Premium stuff they will purchase regardless will Porshe xxx cost them 120k or 140 k. If willnot have these 20k , will borrow these 20k etc.
The same if 300k vs 330 k etc.

They wants brand and to show that they does have money.

While I don't agree that all BMW drivers or Mercedes drivers are bad drivers.

Mercedes in europe mainly is prestigious for ppl who does wants to show their...mhmm, stability, social status etc. Mainly ofc expensive Mercedes models.
Financial specialists, doctors, lawyers, architects etc sometimes pretty opposite: are careful drivers....

BMW there too are models for different taste.

 

[oldshadow]

Europe already told Trump they are ok with zero for zero tariffs and Trump said no.

Wasn't there something about a VAT tax on imported goods in Europe that was a point.

Kind of a work around to a Europe tariffs on US goods.

 

[idrankyourbeer]

i thought this was going to be about something or someone getting cancelled. not a company deciding to stop sending their products over to america because of their tarriffs.

 

[Rod1]

Wasn't there something about a VAT tax on imported goods in Europe that was a point.

VAT is sales tax, its also paid by domestic producers

Kind of a work around to a Europe tariffs on US goods.

By that logic California is tariffing the rest of America with its State-wide sales tax.

 

[ermac88]

VW is a failing brand with horrible quality anyway. For all of you anti tariff folsk....why was it ok for everyone to Tariff the US but not the other way around? Keep your shit VWs. No company can survive losing 50% of their total sales.

The Volkswagen Group owns a portfolio of brands including Volkswagen, Audi, Porsche, Lamborghini, Bentley, Ducati, Scania, MAN, and Škoda