The trade wars, they have begun

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Re: The trade wars, they have begun

Post by admin » Tue Jun 05, 2018 10:03 pm

Mexico has imposed 12 billion in tarrifs on the u.s., and appears to be targeting farmers and trumpers.

So far the retailitory tarrifs by other countries have been pretty small, but i think that is just the start. I can see them impossing a little now, just to let the u.s. know they are serious and there are consequences if the u.s. keeps this up.
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Re: The trade wars, they have begun

Post by Huelshoff » Tue Jun 05, 2018 10:13 pm

I agree. The Europeans have a lot of experience in finding those products that do the most damage. They target industries that are heavily dependent on European markets. Back in the 80s when the US hit steel they picked a basket of targets that included lemons, almonds, etc. Its Harley Davidson's turn in the barrel this time.

It will be interesting to see how the Mexican election will influence this. Lopez Obrador has promised to bring back the Mexican corn industry, which was wiped out by US agribusiness. I can just imagine the fireworks with him and Trump in the same room.

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Re: The trade wars, they have begun

Post by at46 » Wed Jun 06, 2018 12:56 am

Mercedes, BMW and Audi pulled out of the 2019 Detroit autoshow, basically giving up on the American market. Who can blame them after Americans sucked 37 billion out of Daimler on the failed Chrysler merger and 30 billion out of VW in the diesel scandal?

Chile has done well for itself so far, and seems to get what's going on, what with the new president's program speech not mentioning the US even a single time. I'm sure China and Russia will make their politely quiet applause heard in Chile.

Especially, since Chile also just recognized Argentinian sovereignty over the Falklands.

https://www.biobiochile.cl/noticias/nac ... inas.shtml

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Re: The trade wars, they have begun

Post by HybridAmbassador » Wed Jun 06, 2018 3:58 pm

at46 wrote:
Wed Jun 06, 2018 12:56 am
Mercedes, BMW and Audi pulled out of the 2019 Detroit autoshow, basically giving up on the American market. Who can blame them after Americans sucked 37 billion out of Daimler on the failed Chrysler merger and 30 billion out of VW in the diesel scandal?
Survival of the fittest, if Euro luxury car builders predominantly from Germany not wanting to do business in the Trump-land, they can sell all their goods to the 1.4 billion strong PRC. VW paid dearley because they tried to cheat and ridicule the Americans and that is that. American sucked Daimler?
Daimler miss-judged their business plan. its just business. Nothing to do with the Amwericans, ha,ha,haa

Daimler chairmen Schrempp on Chrysler. No merger Daimler will buy out Chrysler...

Winston Churchill once cautioned, “Those that fail to learn from history, are doomed to repeat it." So today we’ll take a quick look at one of the most famous M&A disasters in history as a means to keep us focused on skills and insights for future integration success. And I’d be willing to bet that in spite of all the media coverage this deal has received over the years, you’ve never heard the biggest mistake Daimler made…
Background on the Deal

Upon announcement in 1998, this deal was hailed by many analysts as a slam-dunk winner. It was a textbook example of a global, scale-enhancing, industry consolidation play with a unique market-segment extension opportunity to reach all principal auto-buyer segments from one single manufacturer. With $8 billion in anticipated cost synergies and a ground-breaking combination of legendary brands, what could possibly go wrong?

"Instead of preserving and leveraging Chrysler’s unique competitive advantage, Daimler’s consolidation mindset ... destroyed the company.”

Background on Chrysler Pre-Deal

Most folks have forgotten that Chrysler was quite a prize. At the time of the deal, it was the most profitable auto company in the world. Revenues were at an all-time high, driven by segment leaders such as the Jeep Grand Cherokee and the Dodge Ram. Chrysler boasted a 23% market share in the U.S., a superstar leadership team and $7.5 billion in cash on hand – enough to weather any down cycle without the need for a bailout. From a cultural standpoint, Chrysler’s celebrated leadership had brought the company back from the brink of bankruptcy on multiple occasions, and their “can-do” culture was based on strength, not just survival.
Then What Happened?

Here’s the part that everyone knows. A constant stream of bone-headed integration mistakes erupted into an all-out civil war between the two organizations and their respective leadership teams. If you are interested in an excellent, brief account of these issues, one of my favorite articles on this deal is this case study published by the Tuck School of Business at Dartmouth. In sum, here are the most commonly cited failure factors:

Betrayal of expectations. After consistently communicating this as a “merger of equals” for two years, then CEO Jurgen Schrempp was quoted in a Financial Times article saying that this was a mere “PR device” and that Daimler had always intended the deal as an outright acquisition.

Deadlock on key operational and integration issues. Delay, ambiguity and failure by leadership to provide directional guidance on key issues allowed well-intentioned function leaders to butt heads and lose traction at almost every critical juncture.

Cultural flashpoints. Let’s just say this aspect is a case study in and of itself. My favorite cultural war story has to do with how the new executive team ripped out the recently installed smoke detectors on the executive floor at Chrysler headquarters in Detroit so they could smoke cigars with their red wine in the evenings. (Nice work, if you can get it.)

Failure to retain top talent. Just three years after Fortune magazine named Chrysler as its “Company of the Year,” the entire dream team of executives most directly responsible for its pre-deal success had either left voluntarily or were forced out.

The Rest of the Story

By 2001, Chrysler was losing $3 billion annually and key competitors had crushed its U.S. market share by nearly 40 percent. Brand and channel conflict erupted, resulting in few, if any, cross-selling results while product rationalization and supply chain optimization decisions were routinely based more on “our way” vs. “best way.” Now here’s what will really blow you away: during the years leading up to the deal in 1998, Chrysler had quietly built the best product development process in the global auto industry. They had reduced their “concept-to-showroom” cycle time from five years to two years resulting in the lowest development costs in the industry, comparatively running at just 2.8 percent of revenues vs. 6 percent at Ford and 8 percent at GM.

My friend Jack Prouty, President of the M&A Leadership Council, would call that Chrysler’s “secret sauce.” In other words, their unique competitive advantage was built up over many years and based on a complex ecosystem of internal processes and capabilities that made it very difficult for competitors to replicate. Instead of preserving and leveraging Chrysler’s unique competitive advantage, Daimler’s consolidation mindset and its insistence that the Daimler way should prevail, combined with the other more obvious failure factors, destroyed the company. No wonder Daimler eventually paid Cerberus Capital Management to take Chrysler off its hands in 2007!
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Re: The trade wars, they have begun

Post by HybridAmbassador » Wed Jun 06, 2018 8:49 pm

Trump plans confrontational approach with world leaders at economic summit ... Stirring the pot at the G7 summit!

https://www.msn.com/en-us/news/world/tr ... spartandhp
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Re: The trade wars, they have begun

Post by at46 » Wed Jun 06, 2018 11:47 pm

HybridAmbassador wrote:
Wed Jun 06, 2018 3:58 pm
at46 wrote:
Wed Jun 06, 2018 12:56 am
Mercedes, BMW and Audi pulled out of the 2019 Detroit autoshow, basically giving up on the American market. Who can blame them after Americans sucked 37 billion out of Daimler on the failed Chrysler merger and 30 billion out of VW in the diesel scandal?
Survival of the fittest,
I guess it's one way of looking at it. I see it a bit differently though.

Deutsche Bank, the largest shareholder of Daimler at the time, was lured by Goldman Sachs into the dream of German-American globalization via Chrysler takeover. Don't judge them harshly: unlimited American liquidity and German technical prowess is a heady combo. Unfortunately for Germans, as soon as they took control, they realized they were had.

What they didn't realize is that it was to become only the first in many subsequent instances of them being had by their American friends. That's basically all there is to it.

Now Daimler is doing globalization via the Chinese, because the Chinese don't do multi-billion regulatory fines or diesel scandals, but have pretty good military, especially in combination with Russia, to protect their client state.

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Re: The trade wars, they have begun

Post by HybridAmbassador » Thu Jun 07, 2018 2:02 pm

at46 wrote:
Wed Jun 06, 2018 11:47 pm
HybridAmbassador wrote:
Wed Jun 06, 2018 3:58 pm
at46 wrote:
Wed Jun 06, 2018 12:56 am
Mercedes, BMW and Audi pulled out of the 2019 Detroit autoshow, basically giving up on the American market. Who can blame them after Americans sucked 37 billion out of Daimler on the failed Chrysler merger and 30 billion out of VW in the diesel scandal?
Survival of the fittest,
I guess it's one way of looking at it. I see it a bit differently though.

Deutsche Bank, the largest shareholder of Daimler at the time, was lured by Goldman Sachs into the dream of German-American globalization via Chrysler takeover. Don't judge them harshly: unlimited American liquidity and German technical prowess is a heady combo. Unfortunately for Germans, as soon as they took control, they realized they were had.

What they didn't realize is that it was to become only the first in many subsequent instances of them being had by their American friends. That's basically all there is to it.

Now Daimler is doing globalization via the Chinese, because the Chinese don't do multi-billion regulatory fines or diesel scandals, but have pretty good military, especially in combination with Russia, to protect their client state.
M-Benz so called German entity but majour shareholders are the Arabs and Volvo's owner the Chinese crappy Auto manufacture, what was the name of that Auto manufacturer?
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Re: The trade wars, they have begun

Post by HybridAmbassador » Mon Jun 11, 2018 4:17 pm

Mr.Trumpf being pressed by other G6 heads.https://www.msn.com/en-us/news/opinion/ ... spartandhp

With President Trump preparing to meet with North Korea, his meltdown at the Group of Seven meeting in Quebec and subsequent lashing out at our allies have led many to lament the possible demise of the post-war global trading order. As David Leonhardt put it: “If a president of the United States were to sketch out a secret, detailed plan to break up the Atlantic alliance, that plan would bear a striking resemblance to Trump’s behavior.”
Trump’s advisers and allies have their own spin on what happened at the Group of Seven over the weekend. They widely circulated this photo — which has gone viral — arguing that Trump had stood up to the foreigners who have long fleeced our country:
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Re: The trade wars, they have begun

Post by admin » Mon Jun 11, 2018 7:31 pm

My hopes for this week are fairly modest.

i figure with the trump-kim meeting and the three federal reserve meetings (u.s., eu, japan) this week, if the global economy does not enter the second great depression or we all have not died in a nuclear holucost by friday, i will call it a pretty good week.

Oh, and i get over my flue, but not going to push my luck.
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Re: The trade wars, they have begun

Post by admin » Fri Jun 15, 2018 11:18 am

Well trump is imposing the tarrifs on china.

Now waiting for the other shoe to drop. China will probably announce something later.

Someone pointed out how this going to screw americans more than anything.

Say some company is building something like buses in the u.s. they use lots of steal. The compapny just moves its production off shore, where they can get steal cheaper, then import the final product that has no tarrif to the u.s. All the u.s. got was fewer jobs. The companies that stay, became less competive.

But hey, i am sure the trumpets will still chear trump as they stand in the unemplyoment line.
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Re: The trade wars, they have begun

Post by admin » Fri Jun 15, 2018 11:35 am

There is something that americans dont get, but the jappenese probably do because it has happened to them from time to time.

China does not need to impose tarrifs to damage u.s. companies. The state media can start a spin cycle bad mouthing u.s. products, and chinese will just stop buying american products en mass. Even products produced in china with an american label.
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Re: The trade wars, they have begun

Post by admin » Fri Jun 15, 2018 2:53 pm

The other little talked about point is the "trade deficit" numbers being thrown around are no where as big as big as the politicians try to make it out.

I seen an a number for iphones for instance. They are claiming the full $500 u.s. price of the iphone in the china trade deficit, when in fact only like $10 to 15 is value added by china. The rest is for example paid to samsung in korea or some other country in the value chain.
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