No. of Recommendations: 1
But at least for what we have left---- I am grateful and I'm sure those families are also.
I have no problem with domestic content legislation. That is what we have been edging toward with the USMCA. The current iteration requires 75% in-zone content, and some percentage of content produced by labor paid at last $16/hr. The chatter is the regime is looking to increase in-zone content to 82%, and 50% from the US. The problem I have is the precipitate way the tariffs have been imposed. Here's a for-instance. Most of what VW sells in the US is built in Mexico. VW sources a lot of parts from it's supply chains in China, the EU, and Brazil, so does not meet the current 75% bar, let alone 82%. I looked at the content sticker on a new VW SUV: only 14% US/Canadian content. This was not an issue for VW when the tariff for non-compliant cars was only 2.5%. Now, the tariff is 25% and VW loses Billions per year to US tariffs. I think the chances are non-zero that VW will decide to exit the US market, rather than rebuild it's supply chain to comply with current, or possible future, content requirements. That would put a lot of people out of worth, at dealers all over the country, as well as VW of America offices, and the one plant that VW does have in the US. At least, the people laid off from the Chattanooga plant might be able to move to the new Ford plant in Tennessee. Then there are all the people who own VWs, who lose dealer parts and service support.
Steve