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11-04-2012 12:29:01

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I haven't heard that Chrylser plant to import Chinese made vehicles to the US. What are the details to the rumor? Is Chrysler is expanding its sales by adding a plant in China to supply vehiles for the Chinese market just like GM builds Buicks in China for the Chinese market? Chinsa is becoming more protectionist and requires foreign companies to produce in China to sell in China. The US should do the same.

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11-06-2012 16:55:39

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 Re: RUMOR MILL? in reply to ss55, 11-04-2012 12:29:01  
The US tariff for "light comercial" vehicle is 25%- a main reason Nissan, Toyota build/assemble pickups in the US for the US market. SO, US does restrict imports of Jeep types, makes them build here to avoid the import tariff. Other countries have similar policies and tariffs- import whole vehicle and pay large tariff, import engine and transmission for assembly in market country with local other parts and labor- no or minimal tariff so is actually practical/profitable to sell in that market country. Some countries require a domestic manufacture partner for a foreign maker to get product into country reasonable price- European common market has some of these requirements. China favors the close to 50% domestic partner route and tells US: "you charge 25% import, we can charge 25% import and no griping expected from your government or populace". Jeep assembly plant in China worked up to 2009 when auto crisis scrambled parts source, plant became a half working repair and parts depot. July article Wall Street Journal(?) noted that the plant was being cleaned and some assembly line jigs were being set up for production by end of year for Jeeps/utility vehicles Jeep based as parts become again available- this for domestic(China) sales only. SO, Jeep limited production in China for domestic sales mostly confirmed. The possibility of Chinese made small parts being sent to US is possible, some larger parts?- maybe axles, transmission, older pattern steering box"s as replacement parts for the older pattern models that would be about what the Chinese would make. A whole Jeep to US would get hit with 25% tarrif so not likely. Jeep assembly plant in China for the Chinese market would generate some license fees, some sales of components like maybe engines-the older, now not EPA compliant 240/4L engine would be a likely choice. We"ll see in 2013 after election who was lieing. RN

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