After the ceremony, Zhang Ruiqiang and Feng Yu sat together, because Feng Yu told him another thing, which made him a little confused.
"Feng Yu, don't you say that there are many problems in the automobile industry of the United States, especially the highest labor cost in the world, so it's not suitable to build a factory. Why should icecity machinery build a car factory in the United States?"
It's not cost-effective to build a car factory in the United States, which is more expensive than transportation after production from Brazil.
Feng Yu explained: "we built a factory in Brazil to sell exclusively to America. Brazil's labor cost is very cheap, even cheaper than our Chinese labor cost, which may be second only to India among the big countries. "
"We build a factory in Brazil to produce, then transport to Canada, pay a tariff of 16.7%, and then enter the United States from Canada. If they enter the United States directly, they will pay 25% of the tariff. There is an agreement between Canada and the United States. They only need to pay 5% of the tariff. As a whole, they will pay 22.5% of the tariff and save 2.5% of the tax. "
This is a reasonable way to avoid taxes. Ice city machinery and Canada have gained benefits, and the United States has suffered some losses.
Do you say that the United States does not know these means? Of course. But in the agreement with Canada, the U.S. also has many advantages in other industries. Especially for the cars exported to Canada, the U.S. only needs to pay 5% tariff, which is too important.
Once the United States, the three major automobile manufacturers, but famous. Now that it's down, we need this kind of preferential agreement even more. If Canada raises tariffs, then the competitiveness of the U.S. cars will decline again, and the road of their co use cars and the Renaissance of clarisle will be far away.
"Now, many of the car factories in the United States have gone bankrupt, including those in the island countries and in Europe. They would rather produce and sell them in other markets than build factories in the United States. They can't stand the auto trade union there."
"They chose to build a factory in a different place than we did. They chose Mexico. Because they think building a joint venture car factory in Brazil will let their technology leak out, let Brazil catch up with their technology as we do in China, and drive their cars out of the market. "
It's clear that Brazil's labor cost is lower, which is more cost-effective than building factories in the United States. But those car companies just don't build factories in Brazil, is it a technical blockade?
They also have joint ventures in Brazil. Just like the previous joint ventures in China, they use those backward technologies to make joint ventures and sell cars. What if we need some better cars over there? Simple, imported. From the United States to Brazil.
The automobile import tariffs are different between different regions. For example, between China and the United States, they are 25% of each other, but between the United States and the European Union, they are 2.5% of each other. This is their trade agreement.
In short, if you are high to me, I am high to you. If you are low to me, I am low to you. Of course, this is the case when the status of the two sides is similar.
Just like before China's accession to the WTO, China's automobile import tariff was as high as 70%, not to protect the development of domestic automobile enterprises.
If there was a 7% tariff at that time, there would be a crazy influx of foreign cars. With better technology and the same price, there would be no way for Chinese car companies to survive.
Of course, there is another way to reduce the automobile tariff between them. Then ice city machinery doesn't need to build factories in the United States. It's better to export directly.
However, in that way, we should reduce the tariff as well as that of the EU. By then, all the cars from Europe and the United States will flow into the Chinese market. I'm afraid that the situation of Chinese car companies will face serious challenges.
Bingcheng machinery manufacturing group can bear it, relying on the spare parts business, other vehicle enterprises may not.
Since the tariff cannot be reduced and the market of the United States must be completely opened, it is necessary to build factories in the United States.
In fact, there is another option, that is, to build a factory in Mexico and then export it to the United States. The tariff is only 5% and the price is very low. The cost of car workers in Mexico is much lower than that in America.
There are also rumors that the tariffs on cars between the US, Canada and Mexico may be reduced to two point five percent or even lower.
Just as the United States and the European Union have an agreement with the island countries, if the automobile tariff of the island countries is 0, then the automobile tariff of the United States and the European Union for the island countries is the lowest.
Island countries are not afraid, because any car sales volume of any country has never ranked in the top 20 in island countries. The cars produced by the island car enterprises are most liked by the islanders.
And the low tariff is more suitable for the island countries' automobile export. Their automobile is also one of the pillar industries. Now, crazy farmland has become the world's largest.
But now those European car companies are starting to build factories in Mexico. On the one hand, they will increase the cost of Mexican auto workers very quickly. On the other hand, will the United States watch them open their eyes?
The biggest possibility is that the United States will start a process to increase punitive tariffs on European cars imported from Mexico to protect the interests of the United States.Those analysts of wind and rain consulting and Taihua consulting all think that they can't enjoy tariff preference unless they are still joint ventures to build factories in Mexico.
The way Canada exports to the United States has been warned that it can only export directly to the United States from Brazil, otherwise it will face tariff penalties.
Feng Yu calculated a detailed account. When he built a factory in the United States, the labor cost didn't rise much, but the welfare requirements of the automobile trade union in the United States were too pitiful for any automobile enterprise to bear.
But now the same cars are bankrupt, and the Auto Union has kept a lot of low profile. At this time, when other auto factories withdraw capital and go bankrupt, Bingcheng machinery manufacturing group will probably get some preferential policies, such as tax relief and so on.
This time in the United States to build a full-automatic car production line, the requirements for auto workers themselves are much less. Now the unemployment of auto workers is very serious. Feng Yu can help to settle some of them. Obaniu will be very welcome.
At the same time, because of the high degree of automation, the workshop conditions will be very good. Like ordinary factories, the various subsidy items of those auto unions can be completely eliminated.
Plus, oba is not going to promote universal health insurance? Feng Yu will respond positively and give the medical insurance to the US government axe, which can also reduce the expenditure.
In terms of endowment insurance, Feng Yu's own bank has insurance business, which can be digested internally and reduce costs.
"After all, although the cost is still a little high, it's not much worse. What's important is that it helped obaniu solve the problem of some bankrupt factories and the placement of unemployed workers. Obaniu promised to give some preferential policies to the wind and rain brand and Lianxiang brand. On the whole, it still made money. "