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Message
re: BMW tariff price increases will go live effective May 1, 2025
Posted on 3/27/25 at 6:07 pm to Flats
Posted on 3/27/25 at 6:07 pm to Flats
quote:
There isn't anywhere for the "tariffs are free!!!" crowd to maneuver here. You either get higher prices OR you get no protection for your domestic industry. The higher price is the protection.
All you're saying is that the higher prices will be delayed a bit. You haven't introduced some third outcome as a result of your "look at the longer term", you've just said the price hikes haven't hit yet.
You left out relocation of foreign production to US soil, unless you consider that protection of domestic industry.
The auto industry is a little different when it comes to evaluating the effects of tariffs. Over the last 25 years I've personally owned/driven a Lexus car and a Toyota truck. According to ChatGPT, the truck is 55% US, 35% Mexico, and 10% Japan. I don't know if those percentages are based on cost, or something else. If Toyota moves that 35% from Mexico to the US, that does nothing to protect Ford, and probably does nothing for union jobs, because Toyota in TX is not a union shop, but it does bring jobs to the US. In about 3 - 4 years I plan on buying another Toyota truck. The tariff won't cause me to buy a Ford, and will have very little if any impact on the cost.
A side benefit to moving production and manufacturing to the US is protecting the supply chain. What would be the difference in the supply of new vehicles during covid if there was no chip shortage? The cost of new and used cars would not have jumped up as much.
1
Posted on 3/27/25 at 6:11 pm to CubsFanBudMan
quote:
You left out relocation of foreign production to US soil, unless you consider that protection of domestic industry.
What else would you consider it?
Posted on 3/27/25 at 6:17 pm to Flats
quote:
Yes, everybody in business wants to sell more product and earn customers. But they still charge what they can because that's how capitalism works. You think car dealers have the same margin on all models? Hell no, they have the low margin models and high margin models, because that's what people will pay. They don't sell a Raptor based on what they cost to produce, they sell a Raptor based on what someone will pay.
They charge as much as they can get away with and the consumer shops around and pays as little as he can get away with. That's not going to stop because Trump is president and helped them out with a tariff.
So by your logic, a tariff would have zero impact on the sales price of a Raptor because they are already selling it for as much as they can get for it. So, the tariff is charging the manufacturer for the right to sell foreign goods in the US. How does that decrease in margin impact the manufacturing cost benefit analysis of the import process?
Posted on 3/27/25 at 6:22 pm to stout
We have the largest( with impetus to buy) consumer market in the world. We have the biggest upside regarding economy in the world. We ARE Americans!!!!!
Posted on 3/27/25 at 6:23 pm to Flats
Relocation of Toyota from Mexico to US doesn't protect Ford. So if you consider relocation to be protection, then Toyota relocating from Mexico to Texas with zero price increase means that you're getting protection with zero increase. Your statement of "You either get higher prices OR you get no protection for your domestic industry. The higher price is the protection." is false.
Posted on 3/27/25 at 6:29 pm to CubsFanBudMan
quote:
So by your logic, a tariff would have zero impact on the sales price of a Raptor
I don't even know if they still sell them, but correct. That was to demonstrate that car dealers like money, and when they get hot models in high demand they essentially ignore retail and get as much as they can for them. They pretty much always sell cars for as much as they can sell them for; that's the business model.
quote:
How does that decrease in margin impact the manufacturing cost benefit analysis of the import process?
At some point the margin decreases to where they can't handle it any longer and they raise prices or move manufacturing to the US, which has the same result. Either way prices go up.
Now if you're really attached to the idea of a booming US car industry then maybe that's worth it, but there is a cost to it. There's no free lunch being created by a tax.
Posted on 3/27/25 at 6:31 pm to CubsFanBudMan
quote:
Relocation of Toyota from Mexico to US doesn't protect Ford.
Sure it does, because Toyota now has lower margins than they would otherwise have. If you increase the operating cost of a competitor in what world is that not helping a business?
Posted on 3/27/25 at 6:34 pm to John Barron
quote:
Just like I said they would do months ago. These companies have 2 choices. Eat the cost or raise prices and have products not sell why competitors take their business. I am sure the CEOs of the companies can afford a 15 million dollar bonus instead of a 25 million dollar bonus
Posted on 3/27/25 at 6:40 pm to Flats
Because like I said before, I'm a Toyota fanboy. I'm not buying a Ford. My wife has been partial to Infiniti over her last few cars. Tariffs won't magically make her want a Ford. According to you, Toyota and Infiniti are already charging as much as they can for the vehicle that we're going to buy, so where's the protection for Ford?
Posted on 3/27/25 at 6:41 pm to Flats
quote:
tariff price increases
I thought those didn't exist.
Like they weren't going up 4% this year anyway. They damn sure weren't going to drop them.
Posted on 3/27/25 at 6:41 pm to DemonKA3268
I think the logic that they’re going to boil the frog on the tariff price increase to not cause a huge system shock by putting the whole cost of the sticker. Especially since Trump will almost certainly relent after European and Americas agree to a new arrangement with lower tariffs on US goods.
Posted on 3/27/25 at 6:42 pm to POTUS2024
quote:
Trump just caused inflation.
Well we really facked up not voting you in I guess
You would have solved it all
Posted on 3/27/25 at 6:46 pm to CubsFanBudMan
Cars, other than specialty models, are commodities and they are produced in factories that are only efficient when producing at a high rate. One cannot simply raise prices by any great amount because competition is hamstrung by tariffs. People will simply not buy because the value for their dollar is not there.
Posted on 3/27/25 at 6:48 pm to CubsFanBudMan
quote:
According to you, Toyota and Infiniti are already charging as much as they can for the vehicle that we're going to buy,
All businesses do this, and yet all businesses raise prices because they have to when their costs go up. No restaurant wants to raise prices, and they'll eat supply costs for a while, but eventually that new menu comes out or they close. Car manufacturers are no different. If you increase their operating costs the consumer will eventually pay for them.
Posted on 3/27/25 at 6:48 pm to SmackoverHawg
quote:
Like they weren't going up 4% this year anyway.
They don't normally increase prices in May.
And there will be the normal new model year increase in Aug/Sept.
This post was edited on 3/27/25 at 6:50 pm
Posted on 3/27/25 at 6:54 pm to BuckyCheese
(no message)
This post was edited on 3/27/25 at 6:56 pm
Posted on 3/27/25 at 7:01 pm to stout
They’re passing it on in repair costs and service costs.
Posted on 3/27/25 at 7:05 pm to Macavity92
B48 (Inline 4) and B58 (Inline 6) are pretty damn reliable engines actually. It took BMW the entire internal combustion engine era but they finally made a reliable performance engine family.
Posted on 3/27/25 at 7:05 pm to Flats
The posters who have never once had an issue with tariffs foreign nations put on our goods are now completely unhinged that Trump has placed a reciprocal tariff on those same countries.
It’s as amusing as it is sad.
It’s as amusing as it is sad.
Posted on 3/27/25 at 7:16 pm to UptownJoeBrown
quote:
I’ve never had even the slightest desire to drive a BMW.
you should. they're fun as shite
current one is a 2001 325xi touring wagon, awd, 5 speed manual. every couple months i get a note under the windshield saying "if you ever want to sell this here's my #"
This post was edited on 3/27/25 at 7:17 pm
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