Posted on 01/29/2015 10:55:05 PM PST by tcrlaf
Military and commercial vehicle maker AM General will start making Mercedes-Benz SUVs this summer under a new, multi-year contract with the German automaker.
AM General will make the R-Class SUV at its commercial vehicle plant in Mishawaka, Indiana. The R-Class, which comes with six or seven seats, was briefly sold in the U.S. but has been sold exclusively in China since 2013.
Mercedes doesn't release sales numbers for individual models in China, but in a presentation last year the company said it sold 12,700 R-Class SUVs in 2013.
Mercedes says it needs to move production of the R-Class from its Tuscaloosa, Alabama, assembly plant to make way for a new SUV, the GLE Coupe, and increase production of other models to meet growing U.S. demand. Its U.S. sales rose 6.5 percent last year, faster than the industry average. Sales of its M-Class SUV, which is also made in Alabama, rose 13 percent.
"Plant Tuscaloosa needs all available production capacities for this segment," said Jason Hoff, President and CEO of Mercedes manufacturing in the U.S.
(Excerpt) Read more at foxnews.com ...
AM General is the same plant the Hummer and the Civilian Hummer were built in.
Since Hummer production ended, they have barely been keeping the plant open by making a handful of Handicapped vans.
Sounds as if almost all of the Benz's built here will go directly to China and Asia.
China got the Hummer and all we got was the Benz.
Why not build them in China where you can pay the workers $1 a day?
Because when China calls in the debt, OUR workers will be paid $1 a day.
True that.
How does one “call in” debt?
Extremely simplified: the Chinese hold govt bonds which were sold by the US to get the cash to finance the recent rounds of quantitative easing (QE). The bonds have a date when they mature/become due to be paid. They can be extended by continuing to pay the interest only and defer the principal/face amount. To "call" the bond means the holder will no longer just accept interest payments and expects the face amount/principal to be paid.
More extremely simplified: it's like you hold a check from a buddy which would pay back a personal loan you made to him. You agree to hold the check, i.e. not cash it at the bank, as long as he pays you smaller amount on a regular basis. Finally, you decide you need all your money back so you tell him you're headed to the bank to cash/deposit the check so the money better be in his account.
Hopefully I've not confused the matter for you but you could take your query to a search engine and start clicking whatever links you get with the search. It would probably be more accurate/in-depth but I did state my response above would be simplified. Not a finance person here but I do think I understand the basics with my whole 3 hour college course in finance...
No, I just wanted to make sure that you understand that bonds mature.
does the principal amount get adjusted for fluctuation in the value of the greenback on the currency market?
This is a feather in the cap of Gov. Pence should he go forward in a bid for POTUS.
Again, Indiana kicks Michigan to the curb and takes Jobs from them, even with Michigan's new right to work. I can't blame them for utilizing an existing plant and expertise, however such opportunities in Michigan are probably competitors plants and that is a no go.
Workers can buy houses there for like $50.
China can sell the US debt they hold to whoever might buy it. They won't, for the same reason they won't "call in" the debt. It would expose the US as insolvent. China would lose on all its US assets and would lose its biggest market.
I used the word in my explanation so I think I have the bond maturing concept and related it to the person making the inquiry. Now, if I fumbled on my presentation and related it incorrectly, I’m glad to learn how I erred because that is likely on the technicalities. Basic concept - got it, the technicalities/process - probably not fully there on the intricacies of international government finance. Larger, overriding concept everybody should get is that our future is mortgaged to others who may have shifting interests that won’t align with our best interests.
In theory, currency value fluctuation is a part of how the bond is priced at the original sale. Since it’s only a theory, there’s no way to fully account for every last variable to every last number past the decimal point.
Indiana’s Pence should tell the UAW of to screw up this agreement with Mercedes and AMGeneral. I would then (if I was Pence) ask for a right to work law.
Indiana is already right to work.
Extremely simplified? No. Extremely incorrect.
The bonds have a date when they mature/become due to be paid. They can be extended by continuing to pay the interest only and defer the principal/face amount.
No. US Treasuries don't work this way. You might be confusing them with US Savings bonds, but most likely, you're just confused.
Finally, you decide you need all your money back so you tell him you're headed to the bank to cash/deposit the check so the money better be in his account.
If China doesn't want to hold our debt, they can sell it, in return for dollars, or they can keep the dollars they receive upon maturity.
Hopefully I've not confused the matter
LOL!
Not a finance person here
Obviously.
but I do think I understand the basics
Nope.
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