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Do you think Kia's quality will suffer if the 25 percent tariff is imposed?

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#1
With all these discussions about tariffs being imposed on imports do you think Kia will start using more cheap materials as a way to cut cost?


Domestic automakers are expressing their worries over a move by the United States to impose a hefty 25 percent tariff on car imports, saying it will roll back Korea's automobile industry to levels seen in the 2000s.

With many industry officials saying the tariff will "virtually disable Korea's automobile exports to the U.S.," the trade minister will visit Washington D.C. Friday to deliver its opinion on U.S. car tariffs.

According to the Korea Automobile Manufacturers Association (KAMA), Thursday, a total of 4.115 million automobiles were manufactured in Korea last year, with 845,300 of them being exported to the U.S.

Should the tariff be imposed as planned and local automakers give up exporting cars to the U.S., Korea's car output will decline to 3.27 million vehicles, similar to that of 2004.

"With nearly 200 car models creating a supply glut as well as heated competition in global markets including the U.S., such a hefty tariff will seriously hurt a model's price competitiveness," an official at a domestic automobile company said.

"The tariff will virtually end Korea's automobile exports to the U.S. and Korea's status as the world's No. 6 car maker will likely be threatened, hurting many related industries."

The Korea International Trade Association said it has sent "public comments" representing domestic automakers' opinion to the U.S. Commerce Department stating that Korean automakers have contributed to the recovery of the U.S. auto industry through their investments and are ready to make more cars, citing Hyundai Motor's recent $388 million investment to expand its facilities at its factory in Alabama.

In the letter, KITA stressed that "U.S. automakers are understood to be more interested in growing their exports by addressing barriers in other countries, rather than calling for import restrictive measures on automobiles and automotive parts coming to the U.S."

If imposed, Korea is expected to be hit the hardest by the tariff, given its car exports to the U.S. accounted for 23.7 percent of the total in 2016. The export percentage of 23.7 percent is the third highest, following Canada's 83.7 percent and Mexico's 38.7 percent.

The tariff appears to be a form of leverage for the U.S. in its negotiations with Canada and Mexico over the North American Free Trade Agreement (NAFTA).

Experts say the two countries will likely be exempted from the duty because U.S. carmakers General Motors and Ford are using Canada and Mexico as their key manufacturing bases.

"A country's weakening status in car manufacturing is a sign that its industrial competitiveness is also weakening," another car company official said.

"The automobile industry is linked to other industries and creates many jobs. For these reasons, many countries are making a lot of efforts to nurture and protect their car industries," he said. "The tariff could cause a great deal of damage to not only carmakers but also many other Korean industries."
 

MurlinatoR

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Lot's of Kia's
#2
No chance.
 

KiaFan

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#3
More likely you?ll see a price increase rather than cost cutting
 


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