Trump's Tariff's impact on Gladiators [LOCKED DUE TO POLITICS]

[cdegraff]

I own a 2022 Overland diesel gladiator. A great vehicle. I love it. It's my 4th jeep and I will eventually want to move up to a new one. The window sticker on my gladiator said the engine was made in Italy, the transmission in Germany, 30% of the parts were made in Mexico and all of it was assembled in Toledo, Ohio. What do think Trump's big tariffs are going to do to the price of a new gladiator?

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[Shibbyjeep]

They would have to start offering a Diesel again to worry about it...

 

[wildtaco]

They would have to start offering a Diesel again to worry about it...

The 3.6 isn't that much different. There is a ton of parts on our Jeeps that are Mopar branded but made in china.

 

[Figmo]

I own a 2022 Overland diesel gladiator. A great vehicle. I love it. It's my 4th jeep and I will eventually want to move up to a new one. The window sticker on my gladiator said the engine was made in Italy, the transmission in Germany, 30% of the parts were made in Mexico and all of it was assembled in Toledo, Ohio. What do think Trump's big tariffs are going to do to the price of a new gladiator?

Possibly go up. Probably not as much as it has gone up over the last 4 years.

Maybe Trump’s cancelling of Biden’s EV mandate will offset any increase.

Time will tell.

 

[ScottBeach]

Meh. That is a stelantis issue to manage. The hope from thr prez would be it all moves back on shore. And jobs are created.
In reality the relationships are leveraged. Carve outs are made. Minor tweats are made. Nothing is moved. Tariffs are waved or avoided.
A US person really can't be justified for most manufacturing that doesn't include deep skills. Could jeep build transmission locally? Sure. But those skills now are really German with their zf. I have owned many car brands with their trans. Gm/Ford tried with a combined effort fresh page design and abandoned it after 2 years in production

It might end up we all get to experience covid level inventories as builders avoid shipping during tariffs and the decade it might take to build new factories in new zones.

 

[Minty JL]

Yeah so you think all of the torque to yield bolts and hardware is made in the US?

All of these countries will either play ball or companies will create new in country production chains to keep their businesses going. Look back to the 1920s-50s........Ford built/manufactured/ produced everything on site they need to build Model Ts and As. There were no supply issues because they did it all. Bring that back and look at the jobs and taxes revenue that will be created.

Nothing political......just referring to previous business models that were successful on all levels.

 

[rharr]

Yeah so you think all of the torque to yield bolts and hardware is made in the US?

All of these countries will either play ball or companies will create new in country production chains to keep their businesses going. Look back to the 1920s-50s........Ford built/manufactured/ produced everything on site they need to build Model Ts and As. There were no supply issues because they did it all. Bring that back and look at the jobs and taxes revenue that will be created.

Nothing political......just referring to previous business models that were successful on all levels.

Only differences back then was US had a open door immigration policy and all the European immigrants that moved here (aka ellis island) were working factory jobs for chump change cause it was better than starving.

That is not the US of today.

 

[ScottBeach]

As someone that sources internationally. We are not taking about a 10 or 20% difference

You could dump a 400% tariff in many parts of my field and it wouldn't be cheaper to on shore

Labor costs in US are often 10x (even in low cost states) compared to many places I do business. That's before added costs of labor laws. Environmental costs etc.

4000% tariffs would make people move but then you have stopped the economy.

A jeep at 400k base price 100% usa content is sold to no one.

 

[Minty JL]

Only differences back then was US had a open door immigration policy and all the European immigrants that moved here (aka ellis island) were working factory jobs for chump change cause it was better than starving.

That is not the US of today.

You have valid points in regards to the history of the labor aspect. My simple stance to that is, there are plenty of people that need jobs or consistent income.

I will refrain from the issues with the social programs at the state and federal levels.

 

[Minty JL]

As someone that sources internationally. We are not taking about a 10 or 20% difference

You could dump a 400% tariff in many parts of my field and it wouldn't be cheaper to on shore

Labor costs in US are often 10x (even in low cost states) compared to many places I do business. That's before added costs of labor laws. Environmental costs etc.

4000% tariffs would make people move but then you have stopped the economy.

A jeep at 400k base price 100% usa content is sold to no one.

Interesting insight. Goes to show there are many later this this production chain Onion

 

[ScottBeach]

The 50s and 60s are another planet. 1/3 the planet was closed. China,India Russia etc had basically no trade. Europe and Japan were rebuilding from return to.the stone age post ww2.

US cost didn't matter as there was no where else to build.

Once you have options. You must be faster cheaper or better.
And better must have value. If I can buy at 2% cost with a 10% failure rate. That is better if I can sus out the bad parts for a fraction of the cost of building .001 failure rates.

 

[Deleted member 57233]

You have valid points in regards to the history of the labor aspect. My simple stance to that is, there are plenty of people that need jobs or consistent income.

I will refrain from the issues with the social programs at the state and federal levels.

We get maybe one or two jobs back for every 20 that left, and those two jobs will require engineering degrees. All the new facilities being built are being automated because it's exponentially cheaper when building new manufacturing, and no one is going to pay American wages unless they absolutely have to.

 

[PuddleJumper]

Honestly idc about the price. Jeep knows they need to lower it and sure bringing full production back stateside isn't gonna be cheap but the real answer here is what Ford and Toyota are prepping to do. Build to order only. Stop building out units no one wants in dumb configurations. Jeep is an enthusiast grade vehicle and therefore minimal stock should be kept on hand. It only takes a week or so to roll one off the line to order. I'd also like to kick mexico off trade agreement and go back to a bilateral with canada and have a open labor agreement with them as well. I really think that would do wonders for domestic auto production along side kicking the dumbass EV goals and mandates to the curb. just my 2 cents,.

 

[ScottBeach]

Toyota and vw and mb build in the USA only because non union labor costs in the us are lower than their home costs

Usa needs more full time jobs. But we need more skilled jobs. Working the line in a plant isn't going to be it. Specialty skills in metallurgy and other related skills have high value but won't generate 10 million jobs.

The auto industry in the USA won't ever employ 10 million people ( about the labor market equivalent to peak early 70s) too much is automated now.

No one is happy Walmart is the largest employer (outside the federal government) but what new field will require a very large limited skill labor force.
I have to focus on limited skill. The majority of Americans aren't able or willing to develop skills. I would argue 40% or more not able due to cognitive or physical limitations. I just don't see a future where that 40,% will get a job in a field for.30.years and have the American dream.

Short of another world wide event that impacts the world's production centers but doesn't impact the USA.

 

[Panthers65]

the same thing that happened in 2019 when the tariffs were rolled out, it pushed Toyota to invest $13 billion in the US economy over 5 years. Other auto mfgs would follow suite as well.

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