What's better for Americans: US-made foreign car *VS* Foreign-made domestic car?

Here is a hypothetical question for two hypothetical car companies. One car company is the $20,000 USA Motors, Inc. car. It's a mid-sized passenger car. The other car is the Fx Motors, Inc, and they also offer a $20,000 family car. USA Motors is Headquartered in Detroit, but their cars are assembled in Mexico of parts mostly made in China. USA Motor's stock is traded on the NYSE, and it is a domestic company in this regards.

Fx Motors is HQ'ed in China, and their cars, for the American markets, are assembled in the USA. They buy most of the car parts from American vendors. For example, they purchase the transmission and mufflers from a company in Kansas that makes these products. However, Fx Motors is listed on the NYSE as an ADR, since it is HQ'ed in China.

Q1: Purchasing from which car company is more beneficial to America's economy, assuming that the cars are identical in quality? Q2: What is the criteria's of being an "American" comapny: Most revenues are from USA; Most employees are from USA; or Corporate HQs is in USA?

Reply to
2.7182818284590...
Loading thread data ...

Thats a very complex question.

The very fundamental point is that car manufacture still provides lots of jobs for lots of americans, and many of them cant easily get another job, essentially because the car manufacturing industry is so concentrated in a few places that depend on that employment.

Detroit has already come down a hell of a long way since its heyday.

Yes, much of that is because of the stupid approach so many of the industry majors have done things, but that doesnt alter the fact that if there was no longer any significant car manufacturing in the US, that would have a massive effect on a hell of a lot of people.

2.7182818284590... wrote:

There arent that many cars that are done like that even now.

There are none of those either. You only see that with Japanese cars currently.

No foreign car manufacturing operations operate like that.

If there really were car operations like your scenario, clearly the car from Fx.

But there arent, so its a completely academic example.

There is no simple answer for something like that.

Nope.

Nope.

Nope in spades.

It isnt even where they make most of their money either.

Its rather silly to claim that say Walmart isnt an american company because they mostly sell stuff that gets made in China etc.

Reply to
Rod Speed

LOL.

Reminds me of something from way back in the mythical 90s.

Seems a little city upstate NY wanted to buy an industrial crane. They put out tenders and waited. And finally settled on a nice machine.

Unfortunately, after the result was published the Korean-sounding name of the company attracted the ire of the local citizenry. [Insert b&w of torch-wielding mob here].

As fate would have it, at that time the local bigwig was having some kind of family problems that were regularly hitting newspapers headlines there-abouts, so to avoid a little extra heat she issued an edict that saw the Korean-sounding company lose its contract, and the purchase re-awarded to a nice US-sounding company -- something to do with forest animals, I forget -- that may have not been the lowest bidder, and maybe not the 2nd-lowest either.

Anyway, we all know about the 4th estate. After all these back-and-forths over a year or more they began a-sniffing and a-diggin and discovered the original Korean-sounding company actually made its crane someplace in upstate NY. And -- wouldn't you know it -- the American-sounding forest animal imported its machines from Korea and the public coffers were going to pay a bit of a premium for the privilige.

Shee-it. Another edict went out from that office and the 2nd contract was cancelled and I'm sure the lawyers of all persuasions put in standing orders for only imported champers.

I only hung around that neck of the woods for 10 y, so I'm not sure how it all worked out. Or not.

Reply to
kym

Sounds like F and the Fusion to me.

Change "China" to "Japan" and there are several possible derevations.

Well, we've had bad experience with USA Motors in the past. Although I do pay attention to the content labels when I buy a vehicle every few years.

The UAW has their answer for that question and it's not going to get you into anything from Fx unless they've successfully burdened the plant with the union albatross.

Reply to
Charlie Perrin

In sci.econ Lubow wrote: ...

...

Yea, have been to that party a time or 2.

Reply to
kym

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.