Topic: Hyundai in Canada?

[tpl]

Hyundai and Kia have manufacturing facilities in the southern U.S., so they do have a presence in the North American manufacturing sector. I like the idea of building cars where they're sold. Maybe Canada needs to impose stiff levies on cars built elsewhere and imported here, in order to stimulate expansion in the auto manufacturing sector. It works in Brazil - loads of car companies from all over the world build cars there, and people buy them, because imported vehicles cost so much more thanks to the government's stiff import duties.

Well there is a 6% duty already except for cars from the USA. Too late on that one as the Autopact removed that duty and then NAFTA replaced the Autopact.

With the current state of the world's economy the LAST thing we need is more tariffs and duties.

[Scarecrow]

The most favored nation (MFN) duty rate on light vehicles is 6.1% in Canada.

Under NAFTA vehicles built in the U.S. or Mexico enter Canada duty free as long as they contain a minimum of 62.5% North American content.  If not they're subject to the 6.1% tariff.

Several years ago Sonatas built in Alabama did not yet have enough regional content and were dutiable.  But this may have changed since then.

By the way NAFTA came into effect in January 1994.  The Autopact was abolished in 2001 after the WTO ruled it illegal, but by that time it had been effectively superceded by NAFTA.

[MKII]

Canada is one of the most expensive places in the world to assemble cars - higher logistics costs, higher payroll taxes, higher fuel taxes and property taxes and electrical rates. Benefits cost more in Canada, and there is more labour cost per car than in the U.S. because of more generous parental leaves and vacations.

It is always possible that the Canadian & Korean government could make a backroom trade off deal to give
Hyundai a few freebies here and there to knock off some fees. But I have no idea what Korea could offer to
Canada in return.

[airbalancer]

the only thing that Canada can is give out grants to build a plant
A city is not allowed to give a company a cheaper tax rate on property to get them to move here
The best thing Canada has going for it , a better educated work force
Which should make a better product' with less warranty claims

[AP]

Hyundai and Kia have manufacturing facilities in the southern U.S., so they do have a presence in the North American manufacturing sector. I like the idea of building cars where they're sold. Maybe Canada needs to impose stiff levies on cars built elsewhere and imported here, in order to stimulate expansion in the auto manufacturing sector. It works in Brazil - loads of car companies from all over the world build cars there, and people buy them, because imported vehicles cost so much more thanks to the government's stiff import duties.

Yep, leave it to the guy from Ottawa to propose a new tax!  Must be something in the water out there...

[sailor723]

the only thing that Canada can is give out grants to build a plant
A city is not allowed to give a company a cheaper tax rate on property to get them to move here
The best thing Canada has going for it , a better educated work force
Which should make a better product' with less warranty claims

Maybe they should come to Saint John? Don't know where you got your info on number 2 above but our city has certainly given companies breaks on property tax in the past.

[airbalancer]

the only thing that Canada can is give out grants to build a plant
A city is not allowed to give a company a cheaper tax rate on property to get them to move here
The best thing Canada has going for it , a better educated work force
Which should make a better product' with less warranty claims

Maybe they should come to Saint John? Don't know where you got your info on number 2 above but our city has certainly given companies breaks on property tax in the past.

I should write that in Ontario you cannot get break on taxes
wifes was on some committee in Cobourg  a couple of years ago , that is how I found out

[rrocket]

I should write that in Ontario you cannot get break on taxes
wifes was on some committee in Cobourg  a couple of years ago , that is how I found out

You might not get a break on taxes, but they hand out money all the time to car companies.  $100 million in tax breaks or $100 million in interest free loans or "grants" is still $100 million....

[johngenx]

A few things that might drive Hyundai to manufacturer cars in North America:

$150+/bbl oil.  Drive the cost of transporting good up like crazy, and companies will produce them closer to consumers.

The "American Car Company" effect.  Hyundai may want to develop customers based on point of manufacture.

[safristi]

another OWS wanting $150/barrel oil..... .............must be something about the low levels of OXYGEN in HIGHER education .... ......maybe take a HIKE out to the OIL FIELDS and PRAY to the HEAVENS for your lucky happenstance.......on a starry crisp night..........or pedal home from the Mt Top next time.......

[johngenx]

Did I advocate for $150+/bbl oil?  No.  I stated that high energy costs would drive up transport costs and motivate manufacturers to locate close to consumers.  Long term, of course.

[tpl]

You are right on that John...or at least some US commentators think that high oil prices will bring offshore manufacturing back to the USA.  We can but hope...

[johngenx]

High energy prices are a doubled edged sword.  It encourages the search for alternative fuel sources and reduces overall consumption, both of which are positive.  In the short term though, it can kill the economy, and since lower income people spend a higher percentage of their income on energy, it hurts them the most.

[tpl]

Yes indeed.   Are there any single edged swords in 2011 economics, trade and business?  If you find one please publish it. 

[safristi]

Did I advocate for $150+/bbl oil?  No.  I stated that high energy costs would drive up transport costs and motivate manufacturers to locate close to consumers.  Long term, of course.

 can you read between your OWN LINES............

[sailor723]

You are right on that John...or at least some US commentators think that high oil prices will bring offshore manufacturing back to the USA.  We can but hope...

Jeff Rubin (formerly of CIBC) takes this position in his book  "Why Your World is Suddenly About to Get A Lot Smaller". I'm not sure if he's right but the arguement certainly makes some sense.

[tpl]

You are right on that John...or at least some US commentators think that high oil prices will bring offshore manufacturing back to the USA.  We can but hope...

Jeff Rubin (formerly of CIBC) takes this position in his book  "Why Your World is Suddenly About to Get A Lot Smaller". I'm not sure if he's right but the arguement certainly makes some sense.

And of course we COULD leave NAFTA and sell our oil sands oil to ourselves at a mere $100 a barrel for a century or so... just requires some pipeline and a couple of upgraders/refineries.   We'd probably have to arrest or just shoot some Oil Co execs, do some compulsory purchasing and off the AB government but what the hell. 

[safristi]

  I knew i'd seen yer High Skool photie on FarceBook.... .... i am yer fiend! i come to get my sandals rid off sand,sh*te and blackflies......

[sailor723]

You are right on that John...or at least some US commentators think that high oil prices will bring offshore manufacturing back to the USA.  We can but hope...

Jeff Rubin (formerly of CIBC) takes this position in his book  "Why Your World is Suddenly About to Get A Lot Smaller". I'm not sure if he's right but the arguement certainly makes some sense.

And of course we COULD leave NAFTA and sell our oil sands oil to ourselves at a mere $100 a barrel for a century or so... just requires some pipeline and a couple of upgraders/refineries.   We'd probably have to arrest or just shoot some Oil Co execs, do some compulsory purchasing and off the AB government but what the hell. 

Well, gas prices inline with other major exporters like Saudi Arabia or Kuwait wouldn't be hard to take 

http://money.cnn.com/pf/features/lists/global_gasprices/