Beam Us Up Pe...

[skygazer6033]

OK Seth, that makes sense. When politics and taxes become involved logic goes out the window.

 

[Ian442]

Those foreign plants are in the South. You know where the carpetbagger unions arent welcome . ( I say in jest of course ).

 

[3wheelin]

Before retiring, I worked internationally for the final 10 years and had the opportunity to visit factories and factory teams on every continent but Africa and Antarctica. It was eye-opening, and humbling.

This is not to diss American workers, but generally speaking American workers are more productive because American companies invest significantly more in technology and automation. American companies do this because American labor rates justify it. I visited a factory in Brazil and was speaking with a young lady who worked in our regional labs - she shared with me that she lived with 4 generations in her home, and that when she got the laboratory job with our company, her family's entire household income increased 17-fold. That is transformational, but it describes for me both the magnitude of the wage gap between developed and less-developed countries, and why folks in less-developed countries compete for these jobs and work hard when they get them.

What we have to keep in mind is that capital knows no borders and flows freely around the globe in search of the best return. Workers in other countries will be just as productive as American workers when they have the same technology and automation to work with.

In EM's case, they have purchased the technology and automation for pennies on the dollar. More importantly, they purchased an automotive factory with EPA permits in place for the functioning paint rooms - the value there is close to immeasurable, both in terms of money and perhaps even more importantly in terms of the time it would have otherwise taken with respect to schedule to secure new permits for a new location.

I don't think EM would be close to the $6,800 target if they had needed to build a US factory from scratch, or if they had increased the complexity of the project by trying to remotely run an international operation with their US-based team of 15. I do believe they are positioned in an incredible sweet spot of circumstances, and that's why they are in the US and will remain here, to great advantage.

Great input Ks6c!

 

[3wheelin]

I've heard all the arguments as to why it's so much more expensive to build vehicles in the USA. All sound perfectly rational to me. My question is if it really is so much more expensive why do we have BMW, Honda, Toyota, Nissan, kia, Hyundai, and others all operating manufacturing plants here?

Anybody want to answer this? It's a very good and puzzling question!

 

[3wheelin]

American companies can locate their manufacturing in Mexico thanks to certain trade agreements, but non-American companies must have their manufacturing located within our borders if they want to avoid high imporation costs (or outright importation bans).

Because politics.

The more I read, the more I learn! Thanks for the input!

 

[3wheelin]

I'm still buying American brand from American companies but it's sad that they have to resort to cheap labor! And who can blame them, if they want to stay afloat and continue to make profit, that's the rational thing to do. I looked at what I'm wearing right now and it's like UN. My Grayers long sleeves shirt was made in CHINA, my Hanes undershirt- made in HAITI, my Timberland boat shoes- made in DOMINICAN REPUBLIC, my levi's- made in BANGLADESH, my UA boxer short- made in BANGLADESH and I won't be surprised if my Hanes socks are made in HAITI too! All american brand that at one point was made in USA! My point is American labor are much more expensive while parts & materials bought here are inexpensive no wonder why DIY projects are so popular. I think I posted here a while back that I had an engine light on my CRV, using my trusty diagnostic tool found out it's due to a bad O2 sensor which costs $156 and took me less than 10 min. to replace (soaking it w/ W40 took longer), the dealer charges $400. parts and labor!!! Today, I'm adjusting the handbrake cable on my 1999 Toyota Corolla which is as simple as taking out the covers and tightening a nut and bringing it back to 3-4 clicks- the dealer or any auto mechanic will normally charge you a diagnostic fee and the price increases if you need a drum brake replaced, etc.
An ELIO made in the USA w/ 90% parts and with American labor and a price tag below 10K will be a big achievement for a startup automaker and I will proudly drive it everywhere! Heck, I will make a 3rd reservation once I hear more positive news after the E-series tests has been performed. My opinion only.

 

[Coss]

There are two topics that are not allowed and have always been the rule on the ElioOwners Forum.
Those two topics are religion and politics.
This conversation is right on the fence when it comes to politics and I suggest that it does not go over.
Please be aware of this in these continuing discussions.

Thank you

 

[3wheelin]

In my industrial engineering classes, we talked about labor rates and tradeoffs... Labor (in the late 90's) was cheaper in Mexico but American workers are so much more productive as to make up the difference. There are reasons (other than importing regs/incentives) that so many manufactures are building here instead of in Mexico.

Let's hope that it's still the case. EM needs all the help they can get in all aspect of this project including paying for American labor if it is to survive or they'll end up with nothing but good intentions.

 

[floydv]

Here's a WSJ article on some of the reasons foreign manufacturers build in the U.S.

http://www.wsj.com/articles/SB10001424052970204624204577183232490039626

 

[ks6c]

Here's a WSJ article on some of the reasons foreign manufacturers build in the U.S.

http://www.wsj.com/articles/SB10001424052970204624204577183232490039626

Wouldn't let me read without a subscription...