They don’t have to worry, because the Buy American provisions in recent legislation (passed under both Trump and Biden) protects them from competition by more fuel efficient foreign competitors.
True, but in time they will be able to sell only in the US as their cars will not be allowed anywhere else. So if they will want to compete outside US, they will need two lines of the same products. Then they will realize that it will be less expensive to keep only the one that can sell in more places.
If they have not failed in the meantime.
The classic definition of “American” cars has really fallen apart. Stellantis is an international consortium at the management level. GM and Ford have extensive manufacturing in Canada and Mexico. Honda, Toyota, VW, etc assemble most of their North American vehicles in the US. Parts come from all over the world. Even if the part assemblies are made in the US, supplies (or the component supplies) are globally sourced.
Phrased another way, can you really call it American if the lithium is mined in Africa, refined in China, assembled into a battery in Ohio, assembled as a car in Mexico, under the direction of a company headquartered in Detroit? Same for steel, glass, etc?
At what point does it become, or cease to be, an American car?
(In 1984, this question was directly answered by Honda, by creating their first assembly plant in Marysville, OH. Based on the laws at the time, this meant anything manufactured there qualified as an “American” car, not subject to import taxes and restrictions)
They don’t have to worry, because the Buy American provisions in recent legislation (passed under both Trump and Biden) protects them from competition by more fuel efficient foreign competitors.
True, but in time they will be able to sell only in the US as their cars will not be allowed anywhere else. So if they will want to compete outside US, they will need two lines of the same products. Then they will realize that it will be less expensive to keep only the one that can sell in more places.
If they have not failed in the meantime.
The classic definition of “American” cars has really fallen apart. Stellantis is an international consortium at the management level. GM and Ford have extensive manufacturing in Canada and Mexico. Honda, Toyota, VW, etc assemble most of their North American vehicles in the US. Parts come from all over the world. Even if the part assemblies are made in the US, supplies (or the component supplies) are globally sourced.
Phrased another way, can you really call it American if the lithium is mined in Africa, refined in China, assembled into a battery in Ohio, assembled as a car in Mexico, under the direction of a company headquartered in Detroit? Same for steel, glass, etc?
At what point does it become, or cease to be, an American car?
(In 1984, this question was directly answered by Honda, by creating their first assembly plant in Marysville, OH. Based on the laws at the time, this meant anything manufactured there qualified as an “American” car, not subject to import taxes and restrictions)