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Originally Posted by Table 5
Yep.
I'm not saying we'll get all the savings (we won't), but removing a 6.1% tarif is bound to have some effect on prices. A company likes VW is increasingly more about Volume these days...and the more cars they can push out the better for their bottom line. Look how many more Jettas and Passats VW has sold the last couple of years by de-contenting their cars and chopping the price. If they can drop it even further, and sell another 10-15%, it will be worth it to them.
Even a luxury maker like BMW is pushing for volume. You might not get a discount on that 7-series...but if decreasing the price a bit gets more butts into a 1 or 2 Series, you bet they'll do it. Because they know that once you buy that 1 series, chances are you'll come back to upgrade at some point.
And further, car companies don't just make money the day you buy a car...they make money off the financing/leasing and long-term ownership as well. Buying the car itself is just the beginning of a (hopefully) long term relationship....and while they might give you a price drop on the car itself, they sure won't give you a discount on that 300% mark-up Johnson Rod that needs to be replaced when you come in for service.
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Yeah, I don't agree. I think we'll see no savings and VW is not the best example because a large portion of the cars that hit the NA market under the VW brand umbrella are made in Mexico. The jobs will go to where the labor is cheaper and we either get better prices or corporations with larger profits. I'm betting it's the latter. In the long run, these aren't in our best interests, but I guess it's better that it's the EU and not more in China.
