As a general consensus, we do not discuss politics on this forum, but we do discuss policy. And if tarrifs on steel, aluminium and other raw materials continue, Canada will impose reciprocal tarrifs. This might force Scout Motors to pass on the higher cost to Canadian customers and in general American cars will be more expensive. Canadians, is this going to affect your decision to buy a Scout?
Tarrifs on Canada. Would you still buy?
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It’s two years until the vehicles will be ready for buyer consumption. This could completely shift after interim elections not to mention tariffs could revert once prices sky rocket in the U.S. (based on experts in their financial fields). It’s a long time until it all hits the streets so probably a little early to start wondering what will happen.
And Canada has an election coming up soon. So a possible deal could happen and lower tariffs.
I read an article that cars in US will likely increase between $4K -$10K. Thinking Scouts will not come in under $60K anymore-Sadly!
EV incentives are going away in a few months here in Canada. Tesla has also raised prices around $4000 - $9000. And even though we go through the cycle of self inflicted pain on US auto industry and then removal of tariffs, I don't see tariffs on/from China going away which will raise production cost.
How when around 80% of the Scout is made in America. And there even rules that 60%+ of the battery has to be made in America.
Because of the new steel/aluminum tariffs. Majority of our steel/aluminum doesn’t come from US. -but rather the countries the new tariffs are being applied to. Getting US plants back up and running or created along with increased power/electricity to run plants (huge requirements) will take close to 3 years to get up and running. Hydro power is a big source of electricity in the countries making most steel/aluminum and we don’t have those infrastructures in place.
You figure what-75% of a vehicle is made from steel/aluminum
Those increases seem in line based on current vehicle costs
I did some quick research, and it looks like the wholesale price of steel is around $532/metric ton, FOB Pittsburg. So if there is 4,400 lbs of steel per scout, it's $1,064 in steel cost.
So if it goes up 25%, then it would abotu $1,300 per vehicle, or $250 more per vehicle.
Note that if diesel prices come down (trains and trucks to deliver from steel mill to factory), this could wash this out.
I expect it will be a rounding error on price.
So if it goes up 25%, then it would abotu $1,300 per vehicle, or $250 more per vehicle.
Note that if diesel prices come down (trains and trucks to deliver from steel mill to factory), this could wash this out.
I expect it will be a rounding error on price.
im sure all of these increases are already put into the current starting price. If it wasn’t it would probably cost the same as a Tesla.
I'm still price/capability oriented.
If the price goes over 60, I'm not a buyer.
If the price goes over 60, I'm not a buyer.
I'm with you on this. If Scout prices start to runaway from what they promised, I won't blame them for that business decision or be upset, I just won't be a customer.
Fairly though it’s a difference between running away with costs and unforeseen tariffs and global issues that force raw material prices to jump considerably. I agree I have a certain budget and have been taking on some side opportunities to start funding my extras but if vehicles jump $5K due to material costs that’s a handful of extras I have to cut. Guess it depends on each person’s desire to own one of the vehicles.
For sure, though in fairness, plain old inflation in cars has been running hot since the 2012 recovery. the average US new car sold was 30K in 2012. It was 48K last year. So over 50% increase in 12 years. If we see even 4% continued inflation, we'll see that a 60K car today is 65K in 2 years. It hurts, I know!
Idk if anyone else watches the signings of Tariffs but the President said if the product is made in the USA no tariffs to worry about.
And we’re doing a new tariff system called reciprocal tariffs. So if a country is treating us nicely and they reduce their tariffs then we will match what they are charging us. If they up their tariffs on us we will up it on them. Pretty simple. Really nothing to worry about since most countries will probably back down and will lower tariffs on us.
The EU just lowered the tariff on US made cars from over 10% to now 2.5 %. So we lowered the tariff on EU made cars to 2.5%.
And we’re doing a new tariff system called reciprocal tariffs. So if a country is treating us nicely and they reduce their tariffs then we will match what they are charging us. If they up their tariffs on us we will up it on them. Pretty simple. Really nothing to worry about since most countries will probably back down and will lower tariffs on us.
The EU just lowered the tariff on US made cars from over 10% to now 2.5 %. So we lowered the tariff on EU made cars to 2.5%.
That’s assuming they agree to steel and aluminum since the majority as raw material is coming from other countries and 25% is a big jump.
And in response to @Derek I agree about inflation but I suspect SM has a good handle on that and probably has that baked into their projected pricing. I just don’t think when they started planning and announcing pricing that metals would get hit with 25%. I suspect maybe they factored 10%?
This is worth repeating. It’s a couple of years out and it’s unlikely that the dynamics will be exactly same in two years. I wouldn’t freak out too much or be too sure about how the price would change. Either Scout motors finds a way to adapt or the policies change - probably some useful combination of both.
Either way, and no matter your politics, it’s not a bad idea to write your congress critter about your concerns. Some of that pressure can help move towards constructive conversations in Washington.
Japan and now possibly India might be getting excepted or lower tariffs on Steel and Aluminum..
But also ScoutMotors is so close to NUCOR steel in NC. So it would ultimately make sense to use them for Steel and theirs even Aluminum manufacturers in SC and NC. There are options in the US. Doesn’t make sense to use other countries when we make it too. And without Child Slave Labor.
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If a tarrif is applied on Canadian steel imports and then you expect to sell an American car made with American steel for the same price in Canada? This won't happen because Canada will impose tarrifs on American cars. If this is what people want to not care about Canadian market, that's a different thing but we in Canada are looking at a higher cost if this continues.