Extraordinary Genius

2067. Chapter 2067 to the Miguo Construction Vehicle Factory

After the ceremony, Zhang Ruiqiang sat with Feng Yu because Feng Yu told him something, and he couldn’t understand it.

“Feng Yu, you are not saying that the car industry in the country is very problematic, especially the highest labor cost in the world. Is it not suitable for building a factory? Why does Bing City Machinery want to build a car factory in the country?”

Building a car factory in the country is more expensive than transporting it from Brazil, which is not very cost-effective.

Feng Yu explained: “Before we built a factory in Brazil, which was sold exclusively to the Americas. Brazil’s labor costs are very cheap, even cheaper than ours in China. In the big countries, it may be second only to India.”

“We built a factory in Brazil, then shipped it to Canada, paid a tariff, 16.7 percent, and then entered the country from Canada. Directly into the country, we have to pay 20% five tariffs, between Canada and the country. With the agreement, they only need to pay 5% of the tariff, so that the overall payment of 20% 2.5, saving 2% point five tax.”

This is a reasonable means of tax avoidance. Both Bing City Machinery and Canada have benefited, and the country has suffered a bit.

Do you say that the country does not know these means? of course I know. However, in the agreement with Canada, the country also has many advantages in other industries, especially the car exported from Canada to Canada, and only need to pay 5% tariff, this is too important.

In the former rice country, the three major cars made the Company, but the reputation was so great. Now that it has fallen, it is even more necessary for this preferential agreement. If Canada raises tariffs, then the competitiveness of the country’s car will fall again, and their General Motors and Chrysler revival will be in the foreseeable future.

“And now, many of the car factories in the country have gone bankrupt, including the factories of Japan and European car companies. They prefer to sell them from other markets, and they don’t want to build factories in the country. They can’t stand the car unions there. “”

“The place they chose to build the factory is different from our choice. They chose Mexico. Because they feel that building a joint venture car factory in Brazil will make their technology leak, so that Brazil will catch up with them like China. Technology and drive their cars out of the market.”

Ming knows that Brazil’s labor costs are lower, and it is more cost-effective than building a factory in the country. But those car companies are not building factories in Brazil, is it not a technical blockade?

They also have joint ventures in Brazil, just like the joint ventures in China, using the technology that is already behind, to take joint ventures and produce car sales. What if I need some better cars over there? Simple, imported. From the country of rice, sell to Brazil.

Car import tariffs vary from region to region. For example, between China and the country, 20% is 5, but between the country and the EU, 2% is 5, which is the trade agreement between them.

In short, you are high to me, I am high for you, you are low for me, and I am low for you. Of course, this is the case when the status of the two sides is not much different.

Just like before China’s accession to the WTO, China’s car import tariffs were as high as 70%, not to protect the development of the car company.

If there was a 7 percent tariff at that time, then the foreign car madly entered, with better technology and the same price, China car companies still have a way to live.

Of course, there is actually another way to continue to reduce the car tariffs between them. Then Bing City Machinery does not need to go to the country to build a factory. It is good to export directly.

However, in the same way, it is necessary to reduce tariffs as well as the EU. When the European and American cars are all flooded into the China market, I am afraid that the situation of China’s car companies will be seriously challenged.

The Bing City Machinery manufacturing group can survive, and the spare parts business can survive. The other car companies may not be able to survive.

Since tariffs cannot be lowered and the rice market is completely opened, it is necessary to build factories in the country.

In fact, there is still a choice, that is, to build a factory in Mexico, and then export to the country, the tariff is only 5%, the price is very low. The cost of car workers in Mexico is much lower than in the country.

There are also rumors that the car tariff between the country and Canada, Mexico may also be reduced to 2% point five, or even lower.

Just as the country of the United States and the European Union have an agreement with Japan, Japan’s car tariff is 0, so the country’s and EU’s car tariffs for Japan are also the lowest.

Japan is not afraid, because any car sales in any country have never been ranked in the top 20 in Japan. The car produced by the Japanese car company is the most popular among Japanese people.

The low tariffs are more suitable for the export of Japan car, and their car is also one of the pillar industries. Now Toyota has become the world Boss.

However, now those European car companies have begun to set up factories in Mexico. On the one hand, they will also greatly increase the cost of Mexican car workers. On the other hand, will the rice country watch their money?

The biggest possibility is that the country has initiated a procedure to increase the punitive tariffs on European cars imported from Mexico to protect the interests of the country.

Analysts at Wind & Rain Consultation and Taihua Consulting believe that to build a factory in Mexico, unless they are still a joint venture, they will not enjoy the tariff.

The way Canada exports to the country is now also warned that it can only be exported directly from Brazil, or it will face tariff penalties.

Feng Yu calculated the account in detail. In the establishment of the factory in the country, the cost of labor wages actually did not rise much. However, the welfare of the car union in the country of the country was too crowded, and no car company could survive.

But now General Motors is bankrupt, and the car union has a lot of low-key. At this time, when other car factories divested and went bankrupt, Bing City Machinery Manufacturing Group went there to build a factory, and it is very likely to get some preferential policies, such as tax reduction or exemption.

This time in the country to build a fully automated car production line, the requirements for car workers themselves are much less. Now that the car workers are unemployed, Feng Yu can help with some resettlement, and the Oba will be very welcome.

At the same time, because the degree of automation is extremely high, the workshop conditions will be very good. As with ordinary factories, the various subsidies of the car unions can be saved a lot.

Is it not necessary to implement universal health insurance? This Feng Yu will respond positively, and the medical insurance will be given to the Government of the United States, which can also reduce expenses.

In terms of pension insurance, Feng Yu’s own bank has an insurance business, which can be digested internally and reduce costs.

“All the calculations, although the cost is still slightly higher, but it is not too much. What is important is that it helped the Obama to solve the problem of resettlement of some bankrupt factories and unemployed workers. The Ouba cattle promised to give Wind & Rain Brand and Lenovo have some preferential policies. Overall, they still earned.”