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Tesla to Build Cars in China

vj123

vj123

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sandmangti said:
Yep
So soon everything will move to India.
Click to expand...

Pretty soon and US government is initiating this with F16s.
http://money.cnn.com/2017/06/20/news/india/lockheed-martin-tata-f16-manufacturing-india/index.html

I dont have problems in corporates making money but i have a problem when it turns into greed.

Net income of Apple in 2016 was around $46 billion by having China as their manufacturing hub. What would have been the income had the manufacturing was in US? Even with a 50% reduction, income will be $23 billion. If that can happen, Apple can PROUDLY inscribe all their phones with Designed and Manufactured in California instead of Designed in California and Manufactured in China.
 
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Evil Minion

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vj123 said:
Pretty soon and US government is initiating this with F16s.
http://money.cnn.com/2017/06/20/news/india/lockheed-martin-tata-f16-manufacturing-india/index.html

I dont have problems in corporates making money but i have a problem when it turns into greed.

Net income of Apple in 2016 was around $46 billion by having China as their manufacturing hub. What would have been the income had the manufacturing was in US? Even with a 50% reduction, income will be $23 billion. If that can happen, Apple can PROUDLY inscribe all their phones with Designed and Manufactured in California instead of Designed in California and Manufactured in China.
Click to expand...

Me thinks you have no idea how a company actually functions, as far as goals on IRR, ROS, and ROI.

Also how about everyone just inscribes everything with MADE ON EARTH from now on? People who complain about where something is actually made, with zero understanding of big business, are part of why the US continues to be a laughing stock around the rest of the world.
 
vj123

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Evil Minion said:
Me thinks you have no idea how a company actually functions, as far as goals on IRR, ROS, and ROI.
Click to expand...

You have replied your own question. So where do you think every companies goals comes from? I am not a finance guy, based on my engineering experience i do have a fair knowledge of how a company functions.

Evil Minion said:
Also how about everyone just inscribes everything with MADE ON EARTH from now on? People who complain about where something is actually made, with zero understanding of big business, are part of why the US continues to be a laughing stock around the rest of the world.
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I do not have any issues of where the product is being manufactured and I gave Apple as an example. So if Apple is not really concerned why do they have to say "Designed in California" and "Manufactured in China" in all their products. Why cant they just say "Manufactured in China" as all other manufacturers.

And why does company would shift their manufacturing to other countries, For charity or To build the economy of that country?
 
Obsrvr

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Considering how China treats US companies trying to gain a foothold over there, it is sickening to see so many of them completely give in to the Commies. The only big-name US company I know of to tell China to piss off is Google, not that I have any love for Google. They tried to get it going over there, but China demanded so much $$ and censorship that Gargle finally said "fck you China, we're not doing that".
 
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sweeping_seconds

New member
Why wouldn’t they build cars in China? Same product for lower cost, what’s not to like? Why does Tesla have to commit to American manufacturing? All the major Japanese car companies assemble cars here, even a few German brands. Did you know the North American X series BMWs are produced in Michigan? By this logic should they have stayed in Japan and Germany and ship their cars around the world? No, they started production plants in the US and all around the world to- you guessed it- save money, because shipping a several thousand pound piece of machinery requires hefty transportation costs and import duties. My guess is that by producing completely in China they are able to offer vehicles without or with much lower import tax, which if anyone here knows anything about import cars in Asia is that they cost an arm and a leg mostly due to import tax. This way it benefits both the company by allowing them to produce cars at lower cost and also benefit the consumer by offering a lower price for the same product, designed by the same company, using the same parts, and assembled in equally equipped facilities, by workers who have undergone the same training for identical assembly lines.

Also, let me remind everyone here that many VW models are currently produced in Mexico. If we’re talking about perceived production quality, there is no way that Mexico has more skilled production workers than China.

This idea that moving production overseas = corporate greed is asinine. It’s pretty apparent that most here don’t understand dog shit about basic economics.


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Sandman GTI

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sweeping_seconds said:
Why wouldn’t they build cars in China? Same product for lower cost, what’s not to like? Why does Tesla have to commit to American manufacturing? All the major Japanese car companies assemble cars here, even a few German brands. Did you know the North American X series BMWs are produced in Michigan? By this logic should they have stayed in Japan and Germany and ship their cars around the world? No, they started production plants in the US and all around the world to- you guessed it- save money, because shipping a several thousand pound piece of machinery requires hefty transportation costs and import duties. My guess is that by producing completely in China they are able to offer vehicles without or with much lower import tax, which if anyone here knows anything about import cars in Asia is that they cost an arm and a leg mostly due to import tax. This way it benefits both the company by allowing them to produce cars at lower cost and also benefit the consumer by offering a lower price for the same product, designed by the same company, using the same parts, and assembled in equally equipped facilities, by workers who have undergone the same training for identical assembly lines.

Also, let me remind everyone here that many VW models are currently produced in Mexico. If we’re talking about perceived production quality, there is no way that Mexico has more skilled production workers than China.

This idea that moving production overseas = corporate greed is asinine. It’s pretty apparent that most here don’t understand dog shit about basic economics.


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Click to expand...

Does or has Tesla received help from US government?
Tax breaks for buyers of electric cars.
If tax dollars funding them any then maybe they should consider USA manufacturer in more. My thoughts.
If no tax help then do what they want.
I will never buy as long as I have non China options.
 
Obsrvr

Obsrvr

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sweeping_seconds said:
Why wouldn’t they build cars in China? Same product for lower cost, what’s not to like? Why does Tesla have to commit to American manufacturing? All the major Japanese car companies assemble cars here, even a few German brands. Did you know the North American X series BMWs are produced in Michigan? By this logic should they have stayed in Japan and Germany and ship their cars around the world? No, they started production plants in the US and all around the world to- you guessed it- save money, because shipping a several thousand pound piece of machinery requires hefty transportation costs and import duties. My guess is that by producing completely in China they are able to offer vehicles without or with much lower import tax, which if anyone here knows anything about import cars in Asia is that they cost an arm and a leg mostly due to import tax. This way it benefits both the company by allowing them to produce cars at lower cost and also benefit the consumer by offering a lower price for the same product, designed by the same company, using the same parts, and assembled in equally equipped facilities, by workers who have undergone the same training for identical assembly lines.

Also, let me remind everyone here that many VW models are currently produced in Mexico. If we’re talking about perceived production quality, there is no way that Mexico has more skilled production workers than China.

This idea that moving production overseas = corporate greed is asinine. It’s pretty apparent that most here don’t understand dog shit about basic economics.


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Click to expand...

I understand basic economics, in fact, even intermediate economics! Your points are quite good, and true, in general. Nevertheless, Mexico and the USA don't force other countries to hand over all their hard-earned technology, and % of profits that China does. If they did, we'd have heard about it by now.

In matters of Principle, I can't get excited about American companies building factories in a Socialist country. China has to censor their citizens' every move, for fear one of them might stumble across something that would cause them to "ask questions". They are hard at work as we speak, trying to erase their own Communist history of genocide against their own people. "Mao Zedong Mass Murder"...google it.

Now, I am forward-thinking enough to believe it is "possible" that more business interactions, connections, and trade with China may help to overcome political differences, in the longer run. In turn, that may help create a safer world for us all. I'd bet Elon Musk thinks along those lines, too, in addition to the financial aspect. He, Zuckerberg and others are certainly forward-thinkers. I hope they are right, because the stakes are high, and history isn't on their side, particularly with hard-nosed Communist governments.
 
Sandman GTI

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Obsrvr said:
I understand basic economics, in fact, even intermediate economics! Your points are quite good, and true, in general. Nevertheless, Mexico and the USA don't force other countries to hand over all their hard-earned technology, and % of profits that China does. If they did, we'd have heard about it by now.



In matters of Principle, I can't get excited about American companies building factories in a Socialist country. China has to censor their citizens' every move, for fear one of them might stumble across something that would cause them to "ask questions". They are hard at work as we speak, trying to erase their own Communist history of genocide against their own people. "Mao Zedong Mass Murder"...google it.



Now, I am forward-thinking enough to believe it is "possible" that more business interactions, connections, and trade with China may help to overcome political differences, in the longer run. In turn, that may help create a safer world for us all. I'd bet Elon Musk thinks along those lines, too, in addition to the financial aspect. He, Zuckerberg and others are certainly forward-thinkers. I hope they are right, because the stakes are high, and history isn't on their side, particularly with hard-nosed Communist governments.
Click to expand...



Good post.

Add this.
China will never have to fight us.
All they will have to do is say, "You need to do what we want, or we will stop shipping products to you". No tires, no Walmart, no parts, no electronics.

The war where no shots are fired.


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sweeping_seconds

New member
Sandman GTI said:
Does or has Tesla received help from US government?

Tax breaks for buyers of electric cars.

If tax dollars funding them any then maybe they should consider USA manufacturer in more. My thoughts.

If no tax help then do what they want.

I will never buy as long as I have non China options.
Click to expand...



Receiving help from the US means they shouldn’t produce overseas? Why? What if China offers them tax breaks? What if France does? Are you essentially saying that they shouldn’t expand their business to be more profitable when the opportunity is there? Please remember that Tesla is a publicly traded company, and once a company reaches that status it becomes their fiduciary duty to provide value to shareholders, meaning its their job to make sound business decisions, such as this one.

China produces more cars than the US and Japan combined, yet Tesla should’t be one of those producers, because... ?

China is GM’s (yes, the American company) largest and most profitable market, but according to your logic they should withdraw all of their presence in China because they got tax breaks in the states. Do you see how ridiculous that reasoning is?

Also, if you read the article you would know that they are not stopping manufacturing in the US, they’re building another plant in China to produce for the region. The cars you buy here are still produced here, you will never have to buy a Chinese car in the US if you so choose. You can buy a VW and a BMW made here in the US with substantially reduced import taxes and you have no issue with that, but the same cannot be said for a Chinese consumer to buy a Tesla in the same way. Please see the hypocrisy.


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