FCA Proposes a Merger with Renault

wilber1 wrote:

ShinerBock wrote:

wilber1 wrote:


You don’ think they could have sold a lot more of those small trucks here if they had been 25% cheaper? How many trucks do you think Toyota and Nissan would sell here if they were 25% more expensive? It didn’t protect the UAW because none of the plants are unionized and most are in right to work states where they pay substantially less. Basically, those states are doing the same thing as Mexico.

You are stuck on this 25% as if they were exactly 25% more expensive which is false. If you look at original MSRP of Toyota pickups in the early 90's, the MSRP of these pickups actually increased when they start building the pickup in Fremont, California. The prices never decreased from that point on either so where you are getting this notion that the trucks built overseas were 25% more? Please show me links that these trucks cost 25% more because I am not seeing it.

1990 Toyota Pickup

1991 Toyota Pickup


The UAW was the one that negotiated the 25% chicken tax with President LBJ to protect UAW jobs, and it is them who continue to lobby to keep it in place. Not the US truck manufacturers because it did nothing to help protect them. The UAW wants you to believe that it is the greedy US manufacturers that were the ones that want to keep it in place, but that is not true based on lobby records.

I'm not saying they are 25% more expensive but it does restrict competition which allows them to charge more than if they had that competition.

The Chicken tax also protects Toyota and Nissan from foreign built trucks. It allows them and US manufacturers to charge more for their trucks because they don't have to fear foreign built vehicles. Toyota and Nissan can now charge the same for their trucks without paying the 25%. That 25% now stays in their pockets instead of going to government. Their profit per truck can now equal or exceed the US manufacturers because they aren't paying the tax and are non union.

Toyota, Nissan and other foreign car builders are not UAW. Right to work states allow them to build their vehicles in the US at much lower labour rates. Just like Mexico.

People have some strange ideas about the real consequences of tariffs.

Totally correct Tariffs are used as a trade weapon, very much in evidence between China and the US now
You also have hidden Tariffs, not mentioned above.that does not allow products that do not conform to regulations being sold . As those non NA Pickups are small 3litre Diesels amongst other things they cannot be sold in the US.
UAW is in lockstep with US manufacturers, the Manufacturers are very happy to have a 25% Tariff, it prevents outside competition