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December 04, 2008 – Comments (3)

Sarkozy Unveils Stimulus Package

3 Comments – Post Your Own

#1) On December 04, 2008 at 2:18 PM, lquadland10 (< 20) wrote:

"If our American friends are obliged to do more for their own industry, I won't allow the French automobile industry to be put at a disadvantage compared to the competition," he said.          Would this be what we used to call a TRADE or Price war with tariff? If so what can we call this. The nations trade war bail out? Can you come up with some other ones?

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#2) On December 04, 2008 at 3:26 PM, devoish (98.56) wrote:

Trade war? Who's fighting a trade war?

Truck/auto import tariffs.

USA - 2.5% cars/trucks. Australia - 15%cars 10%trucks. EU 10% up to 18%. Korea - 8% tarrif, 4% other taxes, total 12%. China - 28% -25%. Brazil - 35%.

Those figures were the best I could find and are 2006. The USA may very well apply import tarrifs somewhere else to make up the difference.

Note: The tarrif is 0 between NAFTA partners (Thats Mex, Can, and USA, Sarah).

Now I'm not saying this is the only problem facing the domestic car manufacturers but when a $35,000 Explorer costs a Brazilian $47,000 you are going to sell a few less cars in Brazil. And I know that disadvantage is equal between all carmakers unless Brazil gives favorable terms to someone else (which i do not believe is true) but it is still that many less people who can afford a 35k car.

 

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#3) On December 04, 2008 at 5:49 PM, Imperial1964 (97.79) wrote:

Hmm...  If they'd give me a thousand Euros for every old car I scrapped, I'd scrap most of mine and buy a brand new car with the money!

What an idiotic idea.

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