Wrangler JL Forum banner

1 - 4 of 4 Posts

·
Registered
Joined
·
247 Posts
Discussion Starter #1
Perhaps you've heard of the new tariff war that started last night. Assuming it sticks in the foreseeable future, there's going to be additional tariffs put on American products including Jeeps. The Wrangler is the bread and butter of Jeep and if prices were to increase abroad then sales will definitely fall. It'll also affect those who have not already purchased the new JL. Wrangler production could even slow down because the States do not produce enough aluminum and steel to meet their own production demands.

Personally interested to see how this plays out.
 

·
Registered
Joined
·
467 Posts
Its a possibility but should be mostly ignored till we start seeing prices increasing from a manufacturing end that supplies car makers, that will be the first sign before its reflected in what we as consumers have to pay.
 

·
Registered
Joined
·
169 Posts
The new JL just recently had its price increased, so hopefully this isn't true. And I think automakers will be absorbing the additional manufacturing costs, until a better solution can be found.
 

·
Registered
Joined
·
6 Posts
Not yet, but

The situation is complex and evolving, but for the moment Jeep is not yet on a hit list for increased tarrifs. The EUand, probably, Canada have been subtly efficient in first targeting US products with maximum potential political impact i.e. targeting US products/places of origin where maximum pressure can be applied at the The Donald's core support.


If Trump decides to add vehicles to the current trade war Jeep certainly will be affected - just in time for Land Rover to fill the gap for markets outside the USA. Given Fiat's involvement it is possible that certain vehicles will move to license built elsewhere, potentially costing more US jobs.


The impact on Jeep in the US is twofold - first, cost of raw materials - can the USA meet domestics needs for the right kinds of steel and aluminum (probably not)?



Second, if things escalate what would a 25% price hike do to Jeep's export market (that is a very easy answer)? In the short term such a situation might lead to, at least, stable prices on the US domestic market as Jeep would look to maximize domestic sales to compensate for lost exports; this would, of course, kill profit margin. In the long term it would not be good for US manufacturing - no trade war ever was.


If you think Jeep is bound to US manufacture consider that certain Jeeps are already license built in Egypt and Israel. I am guessing the President doesn't play chess.



Just the opinion of someone who has been trading internationally for three decades.
 
1 - 4 of 4 Posts
Top