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To: DoodleDawg

No, Ford would eat most of that tariff. It works both ways any production cost savings using wetback stoop labor is not passed on to the consumer but to the stock holders. The tariff would eat into the profit margin and Ford would have to move back to the USA because of domestic competition, that is the whole point.


93 posted on 02/08/2016 7:28:33 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
No, Ford would eat most of that tariff.

Sure they will since corporations look for any excuse to take a hit on their profit margin. What would happen is the price of the Fusion would go up 35% and the price of the F-150 would go up a bit since it's manufactured in both Mexico and the U.S.

94 posted on 02/08/2016 7:38:35 AM PST by DoodleDawg
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To: central_va

The average profit per car/truck that Ford sold in the NA market was $600 each. The average price for cars made in Mexico is about $25K. The 35% tariff would be $8,750 per car imported. If the story is true, then Ford would pay an additional (8750 x 500,000) $4.4B USD.

It is impossible for Ford to absorb that. It would mean a cost increase on all cars sold in the NA market, not just the ones produced in Mexico.


108 posted on 02/09/2016 9:42:56 AM PST by CSM (White wine sipping, caviar munching, Georgetown cocktail circuit circulating, Perrier conservative.)
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