You are asking questions that someone who has never stepped one foot into a factory would ask. The 8-10 year labor crisis that we have been facing is only part of the problem with immediately ramping up production. For a manufacturer to ramp up production, his supplier would have needed to ramp up production, and their supplier. To manufacture, you need raw materials to work with. You need trained workers, you need logistics. This doesn't turn on a dime, and it certainly doesn't turn on a temporary market. It also doesn't turn when your raw materials face a tariff.Your questions above make the assumption that we cannot quickly scale up production to meet overseas demand. As of the end of 2024, capacity utilization of all us auto plants in production was around 65%, meaning many plants are running way below full tilt.
Has the cost of labor gone down?
Have the burden and benefits of that labor gone down?
I already addressed the labor question by pointing out we could still sell our vehicles in markets where workers get paid similarly. Not China of course.
Tell me this, (and I have asked this before at other times), if it is so impossible for US automakers to even think about selling our cars in other world markets, then why in the world do these other countries even have any tariffs at all on our autos? That is just a shot at us for apparently no reason at all.
Well?
Samsung faces a tariff if they import to the US. Samsung faces a tariff on components if they set up manufacturing in the US. Samsung however faces no tariffs if they ship components to Mexico and build in their factory there nor do they face a tariff if they ship into the US on products made in Mexico. Where do you think Samsung is going to increase their production? Who is winning biggly here?