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German automakers want to make deal with U.S. on tariffs

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  • #16
    Re: German automakers want to make deal with U.S. on tariffs

    Originally posted by touchring View Post
    I got them in a clearance sale so it was much cheaper than the list price. Let's see if it will last, I might have got a dud, my last Timberland sole came out after 6 months, I suspect it might be a replica.
    Some years ago, my parents bought a new pair of Nike sneakers and kept them new-in-box for a few months before heading off to vacation at a national park. After one day of wearing the new shoes to hike on some trails, the front upper of the sneaker came unglued from the sole. When I used to wear Nike, back when they were not made in China or Vietnam, I had never, ever had seen such poor quality control.

    Anyhow, Timberlands are no longer made in the U.S.A. and haven't been for over 10 years now (maybe it's been close to 20 years since they were made in the U.S.A.) Needless to say, the Timberland shoes made in China are garbage and shouldn't be bought with any expectation of quality. The last pair I ever bought (well over 10 years ago) had a defect right out of the box where one of the metal eyelet reinforcers for the holes where the laces go was not fastened to the leather. When I bought the shoes in the very late 1990s or very early 2000s, I did not think to check the country of manufacture because Timberlands up until that time were always made in the U.S.A. and the U.S. had not been flooded with crappily-made Chinese goods yet. Timberland "got" me once with their shoddy Chinese product and I never gave them my business again. A lot of brands, as GRG55 indicated, have gone or are going the same way. The Chinese who buy the American brands and the American brands that move the manufacturing to countries with poor quality control seem to have failed MBA school (or maybe this is an effect of graduating top of the class): a brand is a shortcut for customers to buy a product without having to do much research, trusting that the brand and its history of quality ensures that the new product is as good as the brand's reputation. A lot of old American brands aren't worth the paper they're printed on anymore and it's hilarious how many Chinese companies seek non-Chinese names to disguise their Chinese origins. This is especially true for Chinese pianos who use German names such as Ritmueller, Strauss, etc.

    Originally posted by touchring View Post
    Using this simplistic calculation, the factory cost of making a pair of sneakers in the US is only $16 more than making it in China.

    https://sneakerfactory.net/sneakers/...ake-a-sneaker/
    Thanks for the interesting link. It was obvious that all the executive talk of using child labor in Asia to pass the cost savings on to customers and make shoes affordable was a lie. New Balance's American-made shoes are manufactured in Massachusetts, if I remember correctly, and I suspect the labor and benefits costs add up to more than $16/shoe over Chinese labor. Nevertheless, so long as New Balance manufactures their shoes in the U.S. and keep the quality up (so far, so good), that is the only brand of sneaker I will buy.
    Last edited by Milton Kuo; June 25, 2018, 02:37 PM.

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    • #17
      Re: German automakers want to make deal with U.S. on tariffs

      Originally posted by thriftyandboringinohio View Post
      The US used to require at least part of that, but we rescinded those regulations.
      The giant food corporations and their trade groups defeated it. They can make more money when they buy the cheapest food from unregulated and non-inspected countries, but wrap it with brand names from the US. Most shoppers will assume the food meets U.S. standards.
      If you are specifically looking to avoid Chinese food products, do not buy any apple juice unless the company specifically states the country of origin of its apple juice and the company is one that you trust to not lie. For whatever reason, China seems to be a big exporter of apples and a lot of Chinese apples end up in apple juice.

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      • #18
        Re: German automakers want to make deal with U.S. on tariffs

        Originally posted by Milton Kuo View Post
        If you are specifically looking to avoid Chinese food products, do not buy any apple juice unless the company specifically states the country of origin of its apple juice and the company is one that you trust to not lie. For whatever reason, China seems to be a big exporter of apples and a lot of Chinese apples end up in apple juice.

        China grows a lot of fuji apples. It's not just apples. 10 years ago, an insider told me China even farms salmon. I couldn't find any info on this on the Internet then, it is some industry top secret, but today it's all over the news.

        http://www.scmp.com/news/china/socie...biggest-salmon
        https://theheartysoul.com/misleading-wild-salmon-label/

        By the way, it's not just China, a lot of even cheaper farmed produce comes from Vietnam which is even deadlier with the agent orange stuff.

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        • #19
          Re: German automakers want to make deal with U.S. on tariffs

          Originally posted by touchring View Post
          I got them in a clearance sale so it was much cheaper than the list price. Let's see if it will last, I might have got a dud, my last Timberland sole came out after 6 months, I suspect it might be a replica.

          Here's an article that claims the labor to make a pair of sneakers is only $4, out of a total factory cost price of $15. Chinese factory workers are paid about 3000 RMB a month, excluding accommodation and meals which are provided by the factory, so assuming this costs another 1500 RMB, a Chinese factory worker will cost 4500 RMB a month ($688). Assuming a factory worker in a rural town in the US (texas?) earns $3000 a month, benefits included? I'm sure this is on the high side as you don't even need high school education to make shoes.

          So this would mean the labor cost to make the same pair of sneakers in the USA will be 4.5 times that of China - $4 x 4.5 = $18. Let's round it up to $20, so the total factory cost price of a made in USA sneaker is $20 + $11 = $31.

          Using this simplistic calculation, the factory cost of making a pair of sneakers in the US is only $16 more than making it in China.

          https://sneakerfactory.net/sneakers/...ake-a-sneaker/
          Don't know the details of everywhere, but New Balance that are from the USA are made near my home--Massachusetts and Maine. They tend to be in urban areas too. Assemblers make about $35k plus benefits on the year. So it's a more than $3k per month--about $3k per month in salary, another $400/mo in FICA, probably another $600/mo in medical/dental and maybe another couple hundred in other benefits and retirement. Total cost I would put closer to $5k than $3k. But the jobs are rare and hard to get. People usually know someone to get in. New balance is kind of an oddity. There was a time not so long ago when the Merrimack Valley was the world's largest manufacturer of textiles and shoes. Further south you had Providence as the world's biggest manufacturer of costume jewelry. Things like New Balance and Alex and Ani and a few other brands still keep the old tradition alive. But most of the old factories are crumbling and occupied by squatting addicts or else have been converted to luxury lofts for yuppies now. Few actually still build anything.

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          • #20
            Re: German automakers want to make deal with U.S. on tariffs

            Originally posted by dcarrigg View Post
            Don't know the details of everywhere, but New Balance that are from the USA are made near my home--Massachusetts and Maine. They tend to be in urban areas too. Assemblers make about $35k plus benefits on the year. So it's a more than $3k per month--about $3k per month in salary, another $400/mo in FICA, probably another $600/mo in medical/dental and maybe another couple hundred in other benefits and retirement. Total cost I would put closer to $5k than $3k. But the jobs are rare and hard to get. People usually know someone to get in. New balance is kind of an oddity. There was a time not so long ago when the Merrimack Valley was the world's largest manufacturer of textiles and shoes. Further south you had Providence as the world's biggest manufacturer of costume jewelry. Things like New Balance and Alex and Ani and a few other brands still keep the old tradition alive. But most of the old factories are crumbling and occupied by squatting addicts or else have been converted to luxury lofts for yuppies now. Few actually still build anything.

            Definitely an oddity, even in China, wages are already considered too high for the sneakers making business.

            http://www.industriall-union.org/ban...d-minimum-wage

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            • #21
              Re: German automakers want to make deal with U.S. on tariffs

              new balance is unique in offering sneakers in widths. thus they've got a chunk of the market to themselves, and i'm sure that helps their pricing.

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              • #22
                Re: German automakers want to make deal with U.S. on tariffs

                Originally posted by jk View Post
                new balance is unique in offering sneakers in widths. thus they've got a chunk of the market to themselves, and i'm sure that helps their pricing.

                This is news to me, luckily the one I got has a 'D' for width.

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                • #23
                  Re: German automakers want to make deal with U.S. on tariffs

                  Looks like German car manufacturers now pushing for zero tariffs. Hopefully they can scale back and end this trade skirmish,

                  https://www.msn.com/en-us/money/mark...war/ar-AAzAvUf

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                  • #24
                    Re: German automakers want to make deal with U.S. on tariffs

                    Originally posted by vt View Post
                    Looks like German car manufacturers now pushing for zero tariffs. Hopefully they can scale back and end this trade skirmish,

                    https://www.msn.com/en-us/money/mark...war/ar-AAzAvUf

                    Sounds like a divide and conquer tactic?

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                    • #25
                      Re: German automakers want to make deal with U.S. on tariffs

                      Merkel says would back cutting EU tariffs on U.S. car imports

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