Laws Have Consequences

Yesterday The Conservative Treehouse reported that Toyota has announced the following:

  • By 2021, Toyota will now invest nearly $13 Billion in its U.S. operations with plans to add nearly 600 new jobs at American manufacturing plants
  • Hybrid versions of the popular RAV4 and Lexus ES to be produced in Kentucky for the first time
  • Production capacity increases and building expansions at Toyota’s unit plants in Huntsville, Alabama, Buffalo, West Virginia, Troy, Missouri and Jackson, Tennessee

The article states that this is a direct outcome of the NAFTA replacement USMCA trade deal; and the new 75% rule of origin within the Auto sector.

The article explains:

The guiding decision here relates specifically to the construct of the USMCA (NAFTA replacement).   Toyota was previously focused on multi-billion-dollar investments in Canada as they exploited the NAFTA loophole and procured component parts from Asia for North American assembly and shipment into the U.S. Market.  However, when they renegotiated NAFTA and created the USMCA President Trump and USTR Lighthizer closed closed the loophole.

The new USMCA agreement requires that 75% of automobile parts must be made in North America; and 45% must come from plants with minimum labor costs ($16/hr); or face tariffs to access the U.S. market with the finished good.  As a result Toyota has to either pay a tariff to continue importing Asian component parts, or move the higher-wage component manufacturing directly into the U.S.

Obviously, Toyota chose the latter.

The article explains that Toyota is not the first automobile company to respond to USMCA:

Keep in mind Toyota is not the first Auto manufacturer to respond with increased U.S. investment. Prior to the USMCA German auto-maker BMW began building a $2 billion assembly plant in Mexico. Under the old NAFTA plan most of BMW’s core parts were coming from the EU (steel/aluminum casting components, engines, transmissions etc.) and/or Asia (electronics, upholstery etc).

However, under the USMCA the Mexico BMW assembly plant has to source 75% of the total component parts from the U.S, Canada and Mexico; with 45% of those parts from facilities paying $16/hr.

The result was BMW needing to quickly modify their supply chain, build auto parts in the U.S. and Mexico, or they would end up paying a tariff on the assembled final product.

Like Toyota, BMW made the financial decision to open a new engine and transmission manufacturing plant in South Carolina…. exactly as Trump and Lighthizer planned.

And don’t forget Fiat Chrysler made a similar announcement in February: “The automaker says it will hire 6,500 workers and invest $4.5 billion by adding a new assembly plant in Detroit and boosting production at five existing factories.”

Like him or not, President Trump is a businessman who is doing things that are helping the American economy and the average worker.

The Government Seems To Be Getting Even More Intrusive

On Friday, CNS News posted a story about a man arrested for driving a car with a secret compartment.

The article explains:

The Ohio law passed last year prohibits, “designing, building, constructing, fabricating, modifying, or altering a vehicle to create or add a hidden compartment with the intent to facilitate the unlawful concealment or transportation of a controlled substance, prohibit operating, possessing, or using a vehicle with a hidden compartment with knowledge that the hidden compartment is used or intended to be used to facilitate the unlawful concealment or transportation of a controlled substance.”

This seems to be a law against an intention rather than an actual crime. There were no drugs in the compartment. When I was a teenager, I knew someone who rerouted the air conditioning in his car to create a refrigerator in the glove compartment. I suspect he kept beer there, but he was old enough to buy beer; and if the bottles are not open, having them in the car is not illegal. Would his refrigerator have been cause for arrest in Ohio?

The article further explains:

Just days before Thanksgiving, 30- year old Norman Gurley was pulled over for speeding, but Ohio State Troopers noticed wires running to the back of the car he was driving.

“During the search, they noticed some components inside the vehicle that did not appear to be factory,” Lt. Michael Combs told WKYC-TV.

“We actually figured it out and followed the wiring and we were able to get it open,” said Combs.

I have a problem with this law. If there had been anything in the compartment, the police would have had every right to arrest the person, but I don’t see how they can justify arresting a man for driving a car with a secret compartment with nothing in it. I believe this is another chapter in the growing story of our government’s assault on our rights as Americans.

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The Super Bowl Just Won’t Be The Same

I could start this story by questioning the wisdom of the people who scheduled the Super Bowl in New Jersey in January, but I will restrain myself. However, I am having a hard time wrapping my head around the idea of banning tailgating at the Super Bowl. I am aware (because of a paper one of my daughters did on her way to a Master’s Degree in marketing) that there is a Commissioner of Tailgating. Was he consulted on this? I understand the need for security, but this seems a little severe.

ESPN posted some of the details of the Super Bowl arrangements on its website yesterday.

The article explains:

“You will be allowed to have food in your car and have drink in your car,” Kelly said. “And provided you’re in the boundaries of a single parking space, you’ll be able to eat or drink right next to your car. However, you’re not going to be able to take out a lounge chair, you’re not going to be able to take out a grill, and you’re not going to be able to take up more than one parking space. And it’ll all be watched very carefully.”

…There will be only three ways for the expected 80,000 ticket holders to get to the game. The committee will charter buses called the Fan Express, which will cost $51 and pick up and drop off passengers at nine locations around the region. Fans can also take N.J. Transit to the MetLife Stadium stop or be dropped off by vehicles that must have parking passes.

There will be fewer than 13,000 parking spots available for fans.

And hiring a black car, taxi or limo won’t be an option for VIPs who will spend thousands of dollars per ticket. No cars will be allowed near the stadium on game day without parking passes, and any car that drops off a passenger will have to wait at the stadium.

Wow. I think they just sucked the fun out of the whole thing.

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