hitchens97

Do we think the German car manufactures like Audi have enough margin to eat some of it, rather than pass the 20% straight on, especially if they think it's temporary?

Perhaps they bundle more stuff in? I suspect the options are very high margins, and so they have more room to take a hit on a loaded Prestige than a base 2.0.

Are parts likely to go up as well? And if so extended warranty prices?

IndyRon

mctt197

Or perhaps the negotiation Trump is executing succeeds and reduces existing tariffs on US products get reduced to make a more even trade balance.

Force-1

Off Topic is that way ------------------------------------------------------------------>

AudiFanFL

Tough to predict the consequences.

I doubt though that this would save any consumer in the US a single penny - no matter if you buy domestic brands or not.

Perhaps Audi will do something similar like BMW does in Spartanburg - especially on models like the Q7: Building them right here in the US.

mikemdd

dohturdima

Chaser: https://theindustryspread.com/market...tariffs-2/June 20, 2018 by DOW JONES INSTITUTIONAL NEWS 0 CommentsBy William Boston and Bojan Pancevski

BERLIN — Germany’s leading auto makers have thrown their support behind the abolition of all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to the brewing trade war.
The U.S. ambassador to Germany, Richard Grenell, brought the proposal for a broader industry trade pact to the Trump administration on Wednesday, according to people familiar with the situation.
That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump’s threat of imposing a 25% border tax on European auto imports off the table.

Now, that's what I call good negotiating! Hart to believe that this tariff imbalance was in place for so long without any push-back from the US...

cgiard

smacky

AudiFanFL

The X5 I once owned was pretty solid.

Another thing people have to realize in the US that the reason why US vehicles don't sell well in Europe (and Germany in particular) are NOT the tariffs. The US manufacturers simply don't offer vehicles that are attractive to the environment and circumstances in Europe. The average vehicle is simply smaller in Germany and has a better MPG-rating. No matter if there is a tariff or not, people won't be driving Dodge pick-ups or Grand Cherokee HEMIs in Germany's major cities (or anywhere, that is). If US manufacturers want to be successful over there, they either have to offer luxury vehicles that are technically top notch (like BMW, Mercedes or Audi) OR they have to offer smaller, green vehicles. What we have on our streets here in the US will NEVER make it to Germany 1:1. First of all, gas costs a fortune and big gas-guzzlers are frowned upon by society. Believe it or not, a vehicle like the Q7 would already fall into that category although it certainly isn't the biggest vehicle you can get in the US by any means.