Chapter 2072: To the country building car factory

After the ceremony, Zhang Ruiqiang sat down with Feng Yu, because Feng Yu told him another thing, so that he could not understand.
"Feng Yu, you are not saying that the automobile industry in the country is very problematic, especially the highest labor cost in the world. Is it not suitable for building a factory? Why does the ice city machinery build a car factory in the country?"
Building a car factory in the country is more expensive than transporting it from Brazil. It is not worthwhile.
Feng Yu explained: "Before we built a factory in Brazil, which was sold exclusively to the Americas. Brazil's labor costs are very cheap, even cheaper than ours in China. In the big countries, it may be second only to India."
"We built a factory in Brazil, then shipped it to Canada, paid a tariff, 16.7 percent, and then entered the country from Canada. Directly into the country, we have to pay a tariff of 25 percent, Canada and There is an agreement between the countries of the United States, they only need to pay a 5 percent tariff, so the overall payment is 22.5 percent, saving 2.5 percent tax."
This is a reasonable means of tax avoidance. Both Bingcheng Machinery and Canada have benefited, and the country has suffered a loss.
Do you say that the country does not know these means? of course I know. However, in the agreement with Canada, the country also has many advantages in other industries, especially the cars exported by the country to Canada, and only need to pay a 5 percent tariff. This is too important.
The former rice country, the three major automobile manufacturers, is famous. Now that it has fallen, it is even more necessary for this preferential agreement. If Canada raises tariffs, then the competitiveness of the country's cars will fall again, and they will have no way to use the car and the road to revitalization of Colles.
"Now, many of the car factories in the country have gone bankrupt, including factories in the island countries and European car companies. They prefer to sell them from other markets, and they don't want to build factories in the country. They can't stand the car trade unions there. ""

The place they chose to build the factory is different from our choice. They chose Mexico. Because they feel that building a joint venture car factory in Brazil will make their technology leak, so that Brazil will catch up with them like our China. Technology and drive their cars out of the market."
Ming knows that Brazil's labor costs are lower, and it is more cost-effective than building a factory in the country. But those car companies are not building factories in Brazil, is it not a technical blockade?
They also have joint ventures in Brazil, just like the joint ventures in China in the past, using the technology that has fallen behind to take joint ventures to produce car sales. What if I need some better cars over there? Simple, imported. From the country of rice, sell to Brazil.
Automobile import tariffs vary from region to region. For example, between China and the United States, it is 25 percent of each other, but between the country and the EU, it is 2.5% of each other. This is between them. Trade agreement.
In short, you are high to me, I am high for you, you are low for me, and I am low for you. Of course, this is the case when the status of the two sides is not much different.
Just like before China's accession to the WTO, China's automobile import tariffs were as high as 70%, not to protect the development of domestic auto companies.
If there is a 7 percent tariff at that time, then foreign cars will invade madly. With better technology and the same price, there is still a way for Chinese car companies to live.
Of course, there is actually another way, that is, to continue to reduce the tariffs on cars between each other, then the Ice City machinery does not need to go to the country to build a factory, just export it.
However, in the same way, it is necessary to reduce tariffs as well as the EU. When European and American cars all flood into the Chinese market, I am afraid that the situation of China's car enterprises will be seriously challenged.
Bingcheng Machinery Manufacturing Group can survive, and rely on the spare parts business to survive. Other car companies may not be able to survive.
Since tariffs cannot be lowered and the rice market is completely opened, it is necessary to build factories in the country.
In fact, there is still a choice, that is, to build a factory in Mexico, and then export to the country, the tariff is only 5%, the price is very low. The cost of auto workers in Mexico is much lower than that of the country.
There are also rumors that the car tariff between the country and Canada, Mexico may also be reduced to 2.5%, or even lower.
Just as the country of the United States and the European Union have an agreement with the island countries, the tariffs on the island countries are zero, so the tariffs on the islands of the country and the EU are also the lowest.
The island nation is not afraid, because any car sales in any country have never been ranked in the top 20 in the island. The cars produced by the island car companies are the most popular among the islanders.
The low tariffs are more suitable for the export of the island's cars. Their cars are also one of the pillar industries. Nowadays, Madian has become the world's leader.
However, now those European car companies have started to build factories in Mexico. On the one hand, they will also greatly increase the cost of Mexican auto workers. On the other hand, will the rice country watch them look at the loopholes?
The biggest possibility is that the country has initiated a procedure to increase the punitive tariffs on European cars imported from Mexico to protect the interests of the country.
The analysts of the storm consultation and Taihua Consulting believe that to build a factory in Mexico, unless it is still a joint venture, they will not enjoy the tariff concessions.
The way Canada exports to the country is now also warned that it can only be exported directly from Brazil, or it will face tariff penalties.
Feng Yu calculated the account in detail. In the establishment of a factory in the country, the cost of labor wages did not rise much. However, the welfare of the automobile unions in the country was too crowded, and no car companies could survive.
But now the same car has gone bankrupt, and the auto union has a lot of low-key. At this time, when other auto factories divested and went bankrupt, the Bingcheng Machinery Manufacturing Group went there to build a factory, and it is very likely that they will get some preferential policies, such as tax reduction or exemption.
This time in the country to build a fully automated car production line, the requirements for the car workers themselves are much less. Now that the auto workers are unemployed, Feng Yu can help with some resettlement, and the Oba will be very welcome.
At the same time, because the degree of automation is extremely high, the workshop conditions will be very good. As with ordinary factories, the various subsidies for the auto unions can be saved a lot.
Is it not necessary to implement universal health insurance? This Feng Yu will respond positively, and this will also reduce the amount of medical expenses.
In terms of pension insurance, Feng Yu’s own bank has an insurance business, which can be digested internally and reduce costs.

All the calculations, although the cost is still slightly higher, but it is not too much. The important thing is that it helped the Obama to solve the problem of resettlement of some bankrupt factories and unemployed workers. The Ouba cattle promised to give the storm card. And even if I think about some preferential policies, I still earned it as a whole."