About 13,000 U.S. auto workers have stopped making vehicles and headed for the picket lines. Their leaders have been unable to bridge a giant gap between union demands in contract talks and what Detroit’s three automakers are willing to pay.
Managers of these companies are good at doing that and are richly rewarded for doing so.
Instead of China it might be other cheap labor place like Vietnam, India or even eastern Europe.
Just take Ford as example, they made trucks in Turkey, imported trucks as passenger vehicles to get around chicken tax, de-mounted passengers seats in states to sell it as protected trucks.
Eventually they got caught. But do you think they would to this gray business if it wasn’t profitable ?
Even if we look at it as having $1.3 billion USD “loan” without a mortgage, because they eventually had to pay back these taxes, it’s still profitable because these $$$ allowed them to build more and sell more in less time + they saved costs on cheap labor.
Managers of these companies are good at doing that and are richly rewarded for doing so. Instead of China it might be other cheap labor place like Vietnam, India or even eastern Europe.
Just take Ford as example, they made trucks in Turkey, imported trucks as passenger vehicles to get around chicken tax, de-mounted passengers seats in states to sell it as protected trucks.
Eventually they got caught. But do you think they would to this gray business if it wasn’t profitable ?
Even if we look at it as having $1.3 billion USD “loan” without a mortgage, because they eventually had to pay back these taxes, it’s still profitable because these $$$ allowed them to build more and sell more in less time + they saved costs on cheap labor.