[s-cars] Front brake research continues...

Eric_R_Kissell@whirlpool.com Eric_R_Kissell at whirlpool.com
Fri Feb 10 10:16:53 EST 2006


Disclaimer - I am not an economist, nor do I play one on TV.

A weaker USD in effect may act like a tariff and should promote domestic
(USA) manufacturing, though in practice outsourcing to lower cost regions
is still often justified based upon purely piece price terms.

Likewise, high-priced oil also acts like a tariff relative to transporting
items from far-away suppliers.  This is why smaller items get outsourced
from far- away suppliers more easily.

There have been many cases where the numbers have not (yet) justified
moving components or manufacturing of finished goods out of the USA.

So, while the costs to manufacture domestically (USA) are impacted by the
strength of the USD and the price of oil, the costs to procure items from
locations outside the USA are also impacted by the strength of the USD and
the price of oil.

MAC: Audi and other European companies are faced with the same issues.
It's a global thing.

MAC2: I would prefer a strong USD relative to the Euro so I can afford a
vacation in Europe to visit Audi and other manufacturers.

Just thinking 'bout things,
Eric



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