ShinerBock wrote:
Most German and Japanese build here to get around the chicken tax. We have only been talking about pickup trucks, but you forget that federal US regulations define many 4WD SUV's and vans as light trucks which make them apart of the chicken tax. Many of the foreign makes factories here are specifically for their SUV's and vans and may also build a few of their cars as well if demand for their SUV's and vans isn't enough to keep production going.
Also, almost all German and Japanese manufacturers have more factories outside their own country than their own which is mostly due to tariffs, labor costs, and other regulations of each region yet no one talks about the lack of competition or protection in these areas.
Yes, they do it because the tariff gives American manufactured vehicles a price advantage over imports giving the manufacture higher margins. There is a reason the US industry is ditching cars for trucks and SUV's and the Chicken Tax gives them a 25% incentive to do so. Problem is, the rest of the world will move on to electrics and other technologies and North America will be left behind.
