Used Cars For Sale Montgomery Al – Cars piled thousands in the nearest field. The assembly line doesn’t run as often as possible, and moves more slowly at that time. With thousands of Alabama jobs on the telephone, the Hyundai plant in Montgomery has worked for months to adjust to the demand for weaker sedans while avoiding widespread layoffs. Now, this is facing a new problem.
President Donald Trump said he plans to impose a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, with details coming at the end of the week. Hyundai and other car manufacturers that assemble cars in Alabama use a mixture of domestic and imported ingredients.
Used Cars For Sale Montgomery Al
Changes to the tariff structure here and potential repayment rates by other countries could “have a negative impact on current US production” by raising costs and leading to higher prices, Hyundai Motor ManufacturingAmerica spokesman Jim Trainor said.
The Alabama plant is the only US production facility at Hyundai. It employs more than 2,500 people directly. Its component supplier network employs many people in central Alabama alone, even though the numbers are swelling and falling with the level of production at HMMA.
Trainor referred further questions to the Hyundai trade group, Global Automakers, an alliance that includes Alabama, Honda and Toyota manufacturers. The group’s CEO referred to the temporary steel tariff introduced by President George W. Bush in 2002 and was appointed the following year. “Combined with risky renegotiation (trade agreements), we can end the trade in the benefits of tax and regulatory reform, competitive prices, access to export markets, and good American jobs. “This approach was unsuccessful for the United States in 2002, when 200,000 jobs were lost, and it will not function today,” Global Automakers President and CEO John Bozzella said in a statement.
Hyundai is still the biggest wheel in the state auto industry that employs 40,000 people – at least until the recently announced Toyota-Mazda factory increases production.
The specter of a trade war has made state Minister of Commerce Greg Canfield worried, especially after hearing from car makers who depend on the complicated supply networks made by companies here and elsewhere. “It’s not just about the car you see outside,” Canfield said. “This has an impact on the parts and components that enter the car, including the engine.” Costs increase with each step.
That means the price of stickers will rise.
Autotrader analyst Michelle Krebs estimates that the proposed tariff will add around $ 200 to the price of ordinary cars. While that might not sound like much, he said the price of car loans was already ahead with higher interest rates. He said middle income households were increasingly forced to use used cars, not new ones.
“We have really increased our new car sales forecast in December when tax reforms passed, thinking it would put more money into people’s pockets that could be used for cars,” Krebs said. “Rates can also erase that profit.”
Rate of retaliation can be very expensive for Alabama. The country ranked No. 3 in the country last year with $ 7.75 billion in exports of motor vehicles. Their top customers? China.
Canfield said 97,000 Alabama jobs were dependent on exports, and 100,000 were directly related to foreign investment in Alabama. “This is worrying because if you lose 10 percent of the job, that’s nearly 10,000 jobs are out of the economy,” Canfield said.
“We have made a big step (at work). This is not the time to step back. ”
Hyundai sales in North America fell 13 percent year-on-year in February, the company reported. This continues to adjust its production mix because sales of its SUV are slowly gaining traction.
The Montgomery plant plans to add new Santa Fe to the production line in June. Meanwhile, still building fewer cars. It launched nearly 60,000 vehicles in the first two months of 2017 – this year it dropped to 44,000.
It plans to close the three-day line this month. Beyond that, plant spokesman Robert Burns said that the factory was just waiting to see what’s ahead.
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