plj
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Joined: Sun Sep 03, 2017 9:52 pm
Location: Davis, California

Effect of revised NAFTA on EV's

Mon Oct 15, 2018 8:16 pm

Has anyone heard of the effect of the revised NAFTA agreement on Bolts? The traction battery and motor are made in Korea...

From this article: https://www.citylab.com/transportation/ ... ay/572857/

The new United States-Mexico-Canada-Agreement, signed by President Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto last month, won’t help either. The update to the North Atlantic Trade Agreement calls for 75 percent of the content of a car or truck to be made from parts made in North America. Right now, the average conventional vehicle manufactured in the U.S. uses about 50 to 60 percent U.S.-Canadian content, but many electric vehicles are down in the 20 to 30 percent content range. Tariffs on that imported content will cause the average vehicle price to go up further, which may put downward pressure on adoption. Combined with the additional steel and aluminum tariffs, the new USMCA may mean widespread EV adoption is a pipe dream for the immediate future.

plj
Posts: 39
Joined: Sun Sep 03, 2017 9:52 pm
Location: Davis, California

Re: Effect of revised NAFTA on EV's

Mon Oct 15, 2018 8:21 pm

According to this link, 20% of the content of the Bolt is USA/Canada and 61% is Korea.

https://www.nhtsa.gov/sites/nhtsa.dot.g ... 262018.pdf

SparkE
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Re: Effect of revised NAFTA on EV's

Mon Oct 15, 2018 9:51 pm

plj wrote:Has anyone heard of the effect of the revised NAFTA agreement on Bolts? The traction battery and motor are made in Korea...

From this article: https://www.citylab.com/transportation/ ... ay/572857/

The new United States-Mexico-Canada-Agreement, signed by President Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto last month, won’t help either. The update to the North Atlantic Trade Agreement calls for 75 percent of the content of a car or truck to be made from parts made in North America. Right now, the average conventional vehicle manufactured in the U.S. uses about 50 to 60 percent U.S.-Canadian content, but many electric vehicles are down in the 20 to 30 percent content range. Tariffs on that imported content will cause the average vehicle price to go up further, which may put downward pressure on adoption. Combined with the additional steel and aluminum tariffs, the new USMCA may mean widespread EV adoption is a pipe dream for the immediate future.


1) Isn't that '%- content" rule only for figuring out what is "NAFTA-made" - i.e., exempt from tarrifs when importing/exporting BETWEEN the 3 countries? I doubt the agreement says "hey, Canada - you are importing EVs into your country from India, so you have to tax them". It is more likely that the rule is "hey, Canada - you are assembling EVs inside your country with under 75% NA origin, so WE will tax it".

2) If the Bolt was already over 50% foreign parts, and the old rule went from 60% to 75% "north american" - nothing changes, right?

I think this is a real non-issue. Where I see it impacting is in Nissan LEAF imports/exports that are manufactured in Canada or the US (Smyrna Vehicle Assembly Plant in Smyrna, Tenn) that cross borders. I doubt it will have an effect on Tesla - anywhere. Basically, a non-issue for EVs.

SeanNelson
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Location: Vancouver, BC

Re: Effect of revised NAFTA on EV's

Tue Oct 16, 2018 12:51 am

plj wrote:According to this link, 20% of the content of the Bolt is USA/Canada and 61% is Korea.
https://www.nhtsa.gov/sites/nhtsa.dot.g ... 262018.pdf

Isn't this changing with battery production moving to the US?

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