Trade Wars Can Be a Game of Chicken. Sometimes, Literally.

Discussion in 'Fred's House of Pancakes' started by pilotgrrl, Mar 13, 2018.

  1. pilotgrrl

    pilotgrrl Senior Member

    Joined:
    Jul 23, 2017
    891
    1,796
    0
    Location:
    Chicagoan in TX
    Vehicle:
    2016 Prius
    Model:
    Three
    Here’s a little known fact: One of the reasons the Ford F-Series pickup acquired its perch at the very top of the sales ranks of cars and trucks in the United States more than 36 years ago had a lot to do with chicken.

    The story: Hoping to fend off a surge of cheap American chicken into West Germany, in 1962 the European Common Market tripled the tariffon the birds to about 13.5 cents a pound. The United States struck back, of course. It imposed tariffs on brandy, a popular French export, and dextrin and potato starch to hit the Dutch.

    To take aim at West Germany, and please its friends in the United Automobile Workers union, it clobbered the commercial Volkswagen bus with a 25 percent levy on light trucks.

    Though the other retaliatory tariffs were lifted long ago, the chicken tax on light trucks — much higher than the typical 2.5 percent tariff on cars — remains in place. It is not a coincidence that light trucks account for 82 percent of the vehicles sold by the three big Detroit automakers.



    https://nyti.ms/2tKO1hY

    Posted via the PriusChat mobile app.
     
    Andyprius1, RRxing, RCO and 1 other person like this.
  2. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    it can get complicated, and the results can be hard to define. there will be winners, and losers. if domestic steel/aluminum production is threatened, i can see a place for a targeted strategy.
    but this is just to fulfill a campaign promise, and likely won't be managed well.
     
    RCO likes this.
  3. pilotgrrl

    pilotgrrl Senior Member

    Joined:
    Jul 23, 2017
    891
    1,796
    0
    Location:
    Chicagoan in TX
    Vehicle:
    2016 Prius
    Model:
    Three
    RCO likes this.
  4. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    oui.
     
    RCO likes this.
  5. hkmb

    hkmb Senior Member

    Joined:
    Sep 27, 2010
    217
    1,609
    0
    Location:
    Sydney, Australia
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    A deluge of oui?

    Not a nice thought.
     
    RCO likes this.
  6. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    make sure to wear rubbers.
     
    pilotgrrl and RCO like this.
  7. hkmb

    hkmb Senior Member

    Joined:
    Sep 27, 2010
    217
    1,609
    0
    Location:
    Sydney, Australia
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    It's protectionism like that that can make companies lazy. It's why Chinese banks are rubbish. And why domestically-made (non-joint venture) Chinese cars are less than brilliant.

    This specific case could explain a lot. US light truck makers only have to compete with each other. They've never been forced to raise their game to compete with foreign companies. Which is why the rest of the world drives Toyota Hiluxes.
     
    RCO and pilotgrrl like this.
  8. KennyGS

    KennyGS Senior Member

    Joined:
    Mar 28, 2014
    1,243
    1,044
    1
    Location:
    Keystone State
    Vehicle:
    2014 Prius
    Model:
    Five
    Mmmmm, chicken!

    [​IMG]
     
  9. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    toyota, nissan and honda all have pick up trucks here. less than spectacular.
     
  10. pilotgrrl

    pilotgrrl Senior Member

    Joined:
    Jul 23, 2017
    891
    1,796
    0
    Location:
    Chicagoan in TX
    Vehicle:
    2016 Prius
    Model:
    Three
    Don't get me started on Cowboy Pimpmobiles, most of which have never seen neither hay nor rodeos.

    Posted via the PriusChat mobile app.
     
    RCO and bisco like this.
  11. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    i never understood the concept until i saw a princess climb into the drivers seat of a shiny, uge pick up while on business in az.
     
    pilotgrrl likes this.
  12. hkmb

    hkmb Senior Member

    Joined:
    Sep 27, 2010
    217
    1,609
    0
    Location:
    Sydney, Australia
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Indeed. But they're only made for the US market (and made in the US, I think), so they only have to be good enough to compete with the American ones. The Toyota Tundra, for example, is a US truck, whereas we get the Hilux. The trucks sold in the rest of the world are smaller, lighter, more fuel-efficient, have bigger load trays, and have higher load-carrying capacities. Also, bits don't fall off the trim. They're more expensive to make, and the margins aren't as good as the trucks they make for the US, but you make what the market will accept in order to maximise your profit.
     
    pilotgrrl, RCO and bisco like this.
  13. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    also, many rednecks may be reluctant to buy ferrin.
     
    RCO likes this.
  14. hkmb

    hkmb Senior Member

    Joined:
    Sep 27, 2010
    217
    1,609
    0
    Location:
    Sydney, Australia
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    My friend's daughter - a very small, pretty blonde girl - was the youngest person in New South Wales to get a "B-Double" licence.

    [​IMG]

    She was at university at the time, and would often drive a truck from her parents' farm to the grain depot in her university town. She was also working as a waitress in a cafe - the kind of place where the waitresses wear a white blouse and a black skirt. She'd get some surprised looks when she left the cafe at the end of her shift, climbed into the truck, and drove off to her parents' place.
     
    Andyprius1, pilotgrrl and RCO like this.
  15. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    yikes, mad max!:eek:
     
    pilotgrrl likes this.
  16. RCO

    RCO Senior Member

    Joined:
    Aug 31, 2016
    3,709
    5,178
    0
    Location:
    Cornwall
    Vehicle:
    Other Hybrid
    Model:
    N/A
    I'm gonna take a guess that you didn't know that 'rubbers' is a generic term for the male sheath contraceptive.
    Than again, I'm only guessing, like I said! :rolleyes:
     
    Andyprius1, pilotgrrl and bisco like this.
  17. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    17,956
    8,768
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    I think Toyota in the segment is part of the reason the Americans worked on improving their truck fuel economy. And then Toyota came out with the new Tundra, the thirstiest truck with an EPA number you can buy.

    The new Ridgeline reminds me of the old Ranger. After seeing several examples on the road, I don't think Honda's rear suspension had towing in mind when designed though.

    Many are also diesels, which has greater resistance in getting to market in the US. As they are in their current markets, they would not get EPA certification.

    Payload and tow ratings have regional regulations and standards, if there is one at all. I have a thread explaining why you can tow with a Prius in the UK, but not in the US. Profits aside, trailer regulations are like our emission ones, stricter than much of the world. The SAE's J2807 method for determining tow rating that is used by Toyota and the American brands would likely be seen has daunting in the rest of the world. manufacturers delayed using it, because it would result in lower rating values.
    SAE J2807 Tow Tests - The Standard
    Jalopnik gives a more concise overview, but their links get loaded with crap here.

    Payload ratings are a factor of gross vehicle weight, and I would not be surprised if American models have unnecessary trimmings cutting into the payload. Efficiency is improving. Ford has a 'small' diesel F150 coming out soon, and a hybrid option in 2020. GM 2019 will have their small diesel available in 2019.

    My experience is just with Ford and GM, and of those, the ones losing trim pieces are actual work trucks that get treated like rented mules. the one F150 at a summer job might have been missing a door handle. It went on a two mile trip every hour, with a half dozen stops. Sometimes the last person left it idling after a run:whistle:. Except for the foot deep puddles after rains, we didn't need a truck, but I think we got the hand me downs from other departments.

    I agree the trucks are overpriced here, and many complain about the lack of bare bone base trims for basic commercial use, but people still buy them. So the manufacturers aren't all to blame. The people do have other options. The auto parts chain that once used Rangers for deliveries have switched to Accents for their fleet.

    A factor, but there is also simple brand loyalty. Friend uses his 2005 F150 for work. It has over 200k miles, and he plans to keep it until it dies. He'll likely get another one whenever that happens.

    It doesn't help Toyota that the Tundra tends to cost more while also using more gas.
     
    pilotgrrl and RCO like this.
  18. Prodigyplace

    Prodigyplace Senior Member

    Joined:
    Nov 1, 2016
    11,698
    11,295
    0
    Location:
    Central Virginia
    Vehicle:
    2017 Prius
    Model:
    Two
    Actually, the Tacoma used to replace the HiLux.
    Now both Tacoma & Tundra have grown. The current Tacoma is about the size of our 2000 Tundra. :eek:
     
    pilotgrrl likes this.
  19. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

    Joined:
    Oct 28, 2010
    7,404
    6,129
    0
    Location:
    Redneck Riviera (Gulf South)
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    I just heard one of the more eloquent explanations of how trade wars work on an American national public radio show, from Austan Goolsbee (served on the Council of Economic Advisers during the Barack Obama administration.)
    The transcript is a little tedious, thus I encourage listening in instead!
    The explanation starts in about 2:15, but I think that the entire episode is worth listening to.....but....then.....I have a bent sense of humor.....;)


    Show link:

    Transcript: Not My Job: We Quiz Economist Austan Goolsbee On Home Economics : NPR
     
    #19 ETC(SS), Mar 21, 2018
    Last edited: Mar 21, 2018
    pilotgrrl likes this.
  20. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    98,584
    44,718
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    we're on to china.
     
Loading...