Trump's Trade War Forces Volvo To Shift Gears In South Carolina# Automobile - 车轮上的传奇
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Nnd,看明白要开砸了。tesla 今天凶多吉少。
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April 16, 20195:21 PM ET
Heard on All Things Considered
Camila Domonoske square 2017
CAMILA DOMONOSKE
Twitter
Tremaine Smalls (center) attaches parts to an engine at Volvo's plant in
Ridgeville, S.C. The automaker has shifted its exports to Europe as the
result of the U.S. trade war with China.
Camila Domonoske/NPR
Volvo is a Chinese-owned Swedish company making cars in the U.S. When it
decided to set up a plant in South Carolina to build cars to ship around the
world, it was following a long tradition.
With its port, Charleston, S.C., has been a shipping hub for centuries. And
the state has been home to international manufacturers for decades — BMW,
Michelin and Bosch are among the many global firms with footholds there.
But before the plant opened last year, President Trump transformed America's
approach to trade policy.
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Trump's trade war with China has stretched for more than a year, and trade
tensions remain high with Europe as well. Tariffs on steel and aluminum are
pinching auto suppliers in the U.S., who face higher costs for raw materials
to make parts. Meanwhile, tariffs on imported parts can cut into the
budgets of automakers, who rely on thousands of different components from
around the world to build each vehicle.
Volvo, owned by the Chinese firm Geely, intended to export many cars from
the plant near Charleston to China, but the tit-for-tat tariffs between
Beijing and Washington threw a wrench into those finely tuned plans. U.S.-
made Volvos aren't being sent to China after all.
"It's kind of a disappointment, but we're going to work through it," says
Trey Yonce, a supervisor at the plant, as he watches line workers assemble
cars. "It wasn't what we wanted to hear."
But as Yonce notes, Volvo is adapting, not cutting back.
Analysts compare imposing tariffs to squeezing on a balloon. Put pressure in
one spot and the global economy will shift to work around it.
Volvo's new $1.1 billion plant in Ridgeville employs 1,500 people and is
currently running at a fraction of its capacity
Camila Domonoske/NPR
Volvo's new $1.1 billion plant in Ridgeville, S.C., employs 1,500 people. It
's currently running at a fraction of its capacity, manufacturing the S60, a
luxury sedan. But Volvo has certainly not stopped production because of
tariffs. In fact, the company is still planning to add an SUV to the plant
in the next few years.
And half the cars made in the facility are still being exported — just not
to China. A batch recently went to Belgium, for distribution across Europe.
In coming months, Volvo says, it will ship cars to countries in the Middle
East, Africa, Oceania and the Asia Pacific region — excluding China, of
course.
The plant was designed to be flexible, handling gas engines, hybrids and
eventually electric vehicles on the same line. Volvo has had to be flexible
about where it builds cars and for which markets, too.
China's Close Government-Business Ties Are A Key Challenge In U.S. Trade
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Slow Down: Volvo Will Limit Its Cars' Top Speeds To 112 MPH
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Slow Down: Volvo Will Limit Its Cars' Top Speeds To 112 MPH
"We need to be able to change our manufacturing capabilities very fast,"
says Anders Gustafsson, Volvo Cars' vice president for the Americas and the
CEO of Volvo Car USA. "We are fast, but it's not easy."
But he takes the long view.
"To run a plant or run a company, it's a long-term decision," Gustafsson
says. "So you lose and you win."
Across the entire industry, automakers are stuck waiting to see how the
trade conflicts will pan out, says labor and manufacturing expert Kristin
Dziczek of the Center for Automotive Research.
In South Carolina, A Program That Makes Apprenticeships Work
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All New Volvo Models Will Be Electric Or Hybrid Starting In 2019
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"Essential investments are getting made," she says. "Strategic investments
are waiting to find out what the rules of the game [are] going to be."
And it's not just the car industry grappling with the unpredictable nature
of these trade talks.
"I think that every industry has got some skin in the game or some things
that get messed up when trade becomes uncertain," she says.
Jim Newsome, the CEO of the South Carolina Ports Authority, notes that his
state depends heavily on global trade. "We ought to be trying to lower
tariffs, not raise tariffs," he says. "The global automotive industry could
benefit from zero tariffs."
DOWNLOAD
TRANSCRIPT
April 16, 20195:21 PM ET
Heard on All Things Considered
Camila Domonoske square 2017
CAMILA DOMONOSKE
Tremaine Smalls (center) attaches parts to an engine at Volvo's plant in
Ridgeville, S.C. The automaker has shifted its exports to Europe as the
result of the U.S. trade war with China.
Camila Domonoske/NPR
Volvo is a Chinese-owned Swedish company making cars in the U.S. When it
decided to set up a plant in South Carolina to build cars to ship around the
world, it was following a long tradition.
With its port, Charleston, S.C., has been a shipping hub for centuries. And
the state has been home to international manufacturers for decades — BMW,
Michelin and Bosch are among the many global firms with footholds there.
But before the plant opened last year, President Trump transformed America's
approach to trade policy.
Trump's Proposed Auto Tariffs Threaten Kia Plant In Georgia
BUSINESS
Trump's Proposed Auto Tariffs Threaten Kia Plant In Georgia
Tariffs' Complex Ripple Effects Hit Appliance Shoppers And Makers
BUSINESS
Tariffs' Complex Ripple Effects Hit Appliance Shoppers And Makers
Trump's trade war with China has stretched for more than a year, and trade
tensions remain high with Europe as well. Tariffs on steel and aluminum are
pinching auto suppliers in the U.S., who face higher costs for raw materials
to make parts. Meanwhile, tariffs on imported parts can cut into the
budgets of automakers, who rely on thousands of different components from
around the world to build each vehicle.
Volvo, owned by the Chinese firm Geely, intended to export many cars from
the plant near Charleston to China, but the tit-for-tat tariffs between
Beijing and Washington threw a wrench into those finely tuned plans. U.S.-
made Volvos aren't being sent to China after all.
"It's kind of a disappointment, but we're going to work through it," says
Trey Yonce, a supervisor at the plant, as he watches line workers assemble
cars. "It wasn't what we wanted to hear."
But as Yonce notes, Volvo is adapting, not cutting back.
Analysts compare imposing tariffs to squeezing on a balloon. Put pressure in
one spot and the global economy will shift to work around it.
Volvo's new $1.1 billion plant in Ridgeville employs 1,500 people and is
currently running at a fraction of its capacity
Camila Domonoske/NPR
Volvo's new $1.1 billion plant in Ridgeville, S.C., employs 1,500 people. It
's currently running at a fraction of its capacity, manufacturing the S60, a
luxury sedan. But Volvo has certainly not stopped production because of
tariffs. In fact, the company is still planning to add an SUV to the plant
in the next few years.
And half the cars made in the facility are still being exported — just not
to China. A batch recently went to Belgium, for distribution across Europe.
In coming months, Volvo says, it will ship cars to countries in the Middle
East, Africa, Oceania and the Asia Pacific region — excluding China, of
course.
The plant was designed to be flexible, handling gas engines, hybrids and
eventually electric vehicles on the same line. Volvo has had to be flexible
about where it builds cars and for which markets, too.
China's Close Government-Business Ties Are A Key Challenge In U.S. Trade
Talks
BUSINESS
China's Close Government-Business Ties Are A Key Challenge In U.S. Trade
Talks
Slow Down: Volvo Will Limit Its Cars' Top Speeds To 112 MPH
BUSINESS
Slow Down: Volvo Will Limit Its Cars' Top Speeds To 112 MPH
"We need to be able to change our manufacturing capabilities very fast,"
says Anders Gustafsson, Volvo Cars' vice president for the Americas and the
CEO of Volvo Car USA. "We are fast, but it's not easy."
But he takes the long view.
"To run a plant or run a company, it's a long-term decision," Gustafsson
says. "So you lose and you win."
Across the entire industry, automakers are stuck waiting to see how the
trade conflicts will pan out, says labor and manufacturing expert Kristin
Dziczek of the Center for Automotive Research.
In South Carolina, A Program That Makes Apprenticeships Work
AMERICAN MADE: THE NEW MANUFACTURING LANDSCAPE
In South Carolina, A Program That Makes Apprenticeships Work
All New Volvo Models Will Be Electric Or Hybrid Starting In 2019
THE TWO-WAY
All New Volvo Models Will Be Electric Or Hybrid Starting In 2019
"Essential investments are getting made," she says. "Strategic investments
are waiting to find out what the rules of the game [are] going to be."
And it's not just the car industry grappling with the unpredictable nature
of these trade talks.
"I think that every industry has got some skin in the game or some things
that get messed up when trade becomes uncertain," she says.
Jim Newsome, the CEO of the South Carolina Ports Authority, notes that his
state depends heavily on global trade. "We ought to be trying to lower
tariffs, not raise tariffs," he says. "The global automotive industry could
benefit from zero tariffs."
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